Liquidation For Your Limited Company

Liquidation.co.uk Can Liquidate a UK Company

Need to Bring a Company to a Close?

Is Liquidating the Solution?

 

Get In Touch To Find Out or Click & Scroll to Discover More About Liquidating a Company


Know If Your Company is Solvent or Insolvent? Then Please Choose: Solvent or Insolvent or Please Read On

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Licensed Insolvency Practitioners

What is Company Liquidation?

  • Liquidating a company is a method used to close a UK Limited Company
  • Simply put the assets of a company are turned to cash and paid first to those owed money and then to the company owners
  • If there is not enough cash left to pay all those owed money then the company is insolvent
  • If everyone owed money can be paid and then money paid to the owners, then the company is solvent
  • Starting the process of liquidating will, importantly, prevent a company from continuing to trade
  • Liquidating a company is also referred to as winding up a company
  • Only an authorised person can act as a company liquidator

Insider Tips:

It is possible, with the correct advice, that a business that operates within a, solvent or an insolvent, company could be transferred out to a new or different company that doesn’t have the debts of the original company – this could allow a business that is burdened by historical difficulties to flourish without a debt burden.

Money owed by a limited company will not automatically be owed personally by the company directors or shareholders of that company.
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Why Would I Need To Wind Up a Company?

  • If the business that operates within a company is no longer able to continue, either at all or within that particular company
  • The business has been sold to another company
  • The directors and shareholders of a business are retiring
  • A contractor that operated within a company is taking a full time job
  • The business has experienced difficulties that have led to it being unable to pay those it owes money to

Insider Tips:

Winding up is not always the only option for a limited company closure. We’d be keen to understand a company’s position to lay out the options for its position.
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When is the Right Time to Liquidate a Company?

For a Solvent company (can pay its debts and has cash or assets remaining)

  • Tax is often a big factor in when it is time to liquidate
    • Which tax year does a personal capital gain fall into?
    • Is a budget review due that may affect tax rules for the future?
    • What other personal capital gains fall within the relevant tax year?
    • Is there a time restriction on the application of Entrepreneurs’ Relief?
  • Are you starting a new full time role and won’t need your company?
  • Has your business just been sold?
  • Are you considering retiring from your business?

For an Insolvent company (can’t pay its debts and owes more than it owes)

  • A winding up petition is being threatened or has been presented against the company
  • The outcome of a court case is expected to go against a company and it can’t pay the likely award
  • The business of the company is no longer viable
  • A company will not be able to pay the wages for its staff
  • A landlord is threatening re-possession of the company’s premises
  • Enforcement action is being taken by those owed money by the company
  • A business has had to cease suddenly due to unforeseen circumstances

Insider Tips:

The above are some examples, but every situation is different and a unique combination of factors will be in play; we will need to understand those factors to be best able to help you.
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Methods of Liquidating a Company

Liquidating a company is split into two categories:

Insider Tips:

When winding up an insolvent business the liquidator must make a report to the Government Insolvency Service on the conduct of the company directors. 
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How is a Company Liquidated?

  • You may have noted the “Voluntary” word used in the Methods of Liquidating section above
  • Voluntary means that the company directors and shareholders start the process at a time to suit them
  • A Licensed Insolvency Practitioner is required to act as a voluntary liquidator of a company
  • A Compulsory Winding Up is started through the courts usually through enforcement action for unpaid debts

Insider Tips:

An insolvent compulsory route is the one that HMRC will follow to pursue unpaid taxes from the company.  HMRC will issue a threat of company winding up and will then issue a winding up petition through the courts. This proceeds to a court hearing to put the company into compulsory winding up.
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How Long Does It Take to Liquidate a Company?

For a Solvent company (can pay its debts and has cash or assets remaining)

  • Planning ahead will be rewarded when winding up a company with assets
    • The date of appointment of a liquidator will create a new accounting period for a company
    • This may be different to your company’s usual accounting period
    • Company accounts will need preparing up to the day before the appointment of a liquidator
    • This will often rely on your accountant’s or bookkeeper’s availability
  • HMRC will add interest on to any money to be paid to them which is paid after the appointment date
  • Planning ahead will, where possible, make sure the accounts are ready for the appointment date
  • With shareholder approval the meeting to liquidate your company can be on “no” notice
  • We can prepare the necessary papers to liquidate your company in a short period of time
  • You can read about the Members’ Voluntary Liquidation process here

For an Insolvent company (can’t pay its debts and owes more than it owes)

  • Speed can be very important for a company under financial pressure
  • A lot of very important steps are taken before a liquidator is formally appointed to your company
  • The Nominated Liquidator making contact with those owed money by your company at the earliest stage is crucial
    • Early contact will lift pressure off the company directors
    • Explaining the process to those owed money will help them to understand what will happen
    • Discussion with employees of the company will help them to understand any claims that they have
  • Protecting any assets of the company will lead to a better return to those owed money
  • By the time the company is formally liquidated all those owed money will have contacted
  • You can read about the Creditors’ Voluntary Liquidation process here

Insider Tips:

The use of electronic signing of documents and virtual meetings (online/telephone) allow us to minimise time and expense of all of the form parts of the process of winding up.

You’ll be glad to hear that our team of 20 are able to deliver the speed that you may need.

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Who Can Act as a Company Liquidator?

  • Only Licensed Insolvency Practitioners can be appointed as voluntary company liquidators
  • A Compulsory Winding Up will appoint the Official Receiver as Company Liquidator; though it’s possible that an Insolvency Practitioner may be appointed as the Compulsory Liquidator at a later point or under the court’s instruction

Insider Tips:

Though the role of a liquidator is restricted to those who are qualified and licensed, this restriction does not apply to those giving advice about insolvency, liquidating and rescue. Naturally we would recommend taking advice from someone that will act as the liquidator of your company and is therefore licensed and will deliver the process as discussed with you.
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How Much Will Liquidating a Company Cost & Who Pays?

  • A company will usually pay to liquidate itself from its assets (cash, money owed to it, physical assets etc.)
  • If a company does not have assets to use then typically company directors and shareholders pay to liquidate the company
  • If a company is forced into liquidating through the courts (compulsory) then a deposit and costs must be paid to the court 
  • Liquidating an insolvent or solvent company with Liquidation.co.uk will start from £3,000
  • Click to learn more; Company Liquidation Costs

Insider Tips:

Look out for unlicensed advisors who will add their costs on to the fees of any liquidator and push the overall cost upwards.

We wouldn’t want to mislead you with eye catching headlines that turn out to be eye watering costs. We’d rather be upfront about costs; in fact you’ll be pleased with our prices and in many cases we are able to work on a fixed fee basis

We will quote you on your actual situation and will be glad to offer you a price, that you can take or leave as you wish

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Any questions at all please get in touch; we’d be delighted to help?

 

A few useful bits of terminology for this page:

  • Company: this refers to company registered at the UK Companies House; this includes Limited Liability Partnerships
  • Insolvency Practitioner: An individual Licensed in the UK to be appointed as a company liquidator
  • Official Receiver: An individual employed by the government’s Insolvency Service who can be appointed as Compulsory Company Liquidator in England and Wales
  • Business: A combination of skills and assets that work together with a goal of making profit

 

 

A Bit About Us?

As you would expect, we’re experienced, licensed and commercial company experts.

We’re here to make your life as simple as possible; we’ll take over any difficulties immediately.

We can start to liquidate today and protect your personal assets.

We can come to you for a meeting.

What you might be surprised to learn is the number of directors that we are able to help to find an alternative solution for their company.

You’ll be delighted to hear that our costs are only one of the reasons that many of our clients use our services.

You may also understand that the correct advice at the outset will save money and protect your personal finances.

Our Support Will Help

        • We would like to offer you a Free Options Review with one of our Licensed Insolvency Practitioners
        • We, that’s Martin, Carolynn and Richard, would be glad to explain your options to you; no jargon and no obligation
        • Simply call or leave your details and we’ll contact you
        • We do understand that this may be the first time that you’ve had to consider such a conversation
        • There’s no cost to speak to us and if you do need a formal process are costs will be a pleasant surprise
        • We are here to guide, inform and support you
        • Our advice will be geared to your company’s own position
        • With our help you’ll be able to make an informed decision on the best solution
        • We’ve a team of 20 in total and have been established for 40 years

 

What Do We Need From You?

      • A little bit of your time please
      • Some background about your company
      • What would you like our immediate help with?
      • Is there a business within your company that you would like to save and continue with?

 

Don’t Like Nasty Surprises?

Neither do we.

We’ll be honest and open with you which will mean no surprises for you as we undertake our legal requirements as liquidators.

We do ideally need to speak to you to advise you properly and often we will meet as well, if that is what you would prefer.

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If you are thinking about having to liquidate a company, you will be faced with a mass of information from websites seeking to convince you to speak to them.

It’s not just the information that is freely available on the web that you will need to understand before deciding whether to liquidate and who to call on for help to liquidate.

It you do not fully understand both the process and the risks of liquidating you could be taking on a host of new problems that you weren’t aware of.

Whether your company cannot pay those that it owes money to or has assets or cash to distribute to its owners, we can help.

Why not get in touch and speak to one of our licensed insolvency practitioners who are also our company directors.  We can offer practical advice to help you make the best decision for your unique circumstances.

It’s free for a consultation and our advice is confidential.

Not sure that liquidating is the right option?

Review all the options for your company – please click here to understand more.

Got some more questions; please feel free to email or call. Not ready for that why not try our Liquidation FAQs?

You could try the .GOV site if you’d like to be sure that our site is accurate?