Published: 10/05/2021 By Jane PriceHere are the typical stages when processing a Members Voluntary Liquidation or MVL but timings will vary depending upon the circumstances of the case.
|On receipt of signed engagement letter, questionnaire and accounts
|Finalise CT return for accounting period(s) to date of liquidation
|Appropriate documentation prepared and circulated to directors for review.
Confirmation that all pre-appointment tax returns are submitted or drafted in readiness for submission on date of liquidation.
|Date of liquidation
|This proposed date is changeable.
|Directors swear the declaration of solvency, with a solicitor in attendance.
|General meeting of members
|Held at short notice and requires all members to attend
Votes are held on resolutions including
|Post liquidation bank account is opened
|We would expect to have the new account number within 24-48 hours.
|1st interim distribution to shareholders when appropriate
|We will require indemnities to be signed by Shareholders if we are to pay an early distribution (eg before it is established there are no creditors).
Typically, this distribution will represent around 95% of the total expected net surplus.
|Request for creditors to claim
|We will place statutory adverts in the London Gazette providing circa one month notice to claim.
|HMRC grants clearance to conclude the liquidation
|Once all HMRC departments confirm they are not owed anything by the company. Clearance will be quicker if we can ensure that all pre-appointment tax returns are submitted including VAT de-registration, closure of PAYE scheme and all returns submitted plus tax paid (for VAT, CT and PAYE/NIC).
|Final distribution to members
|The balance of funds held after the payment of all costs and any creditors’ claims.
|Final report issued to members
|Formal report summarising the liquidation and detailing the Liquidator’s final receipts and payments account.
|8 weeks later
|Liquidator takes release
|Copy of final report is filed at Companies House.
|3 months later
|Company is dissolved at Companies House.
If you would like to know more about how we can help you with an MVL call us to discuss – our initial consultations are free with no obligations to proceed.
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