What Are The Benefits of Liquidation For You? Should You Liquidate?
Get In Touch To Find Out or Click & Scroll to Discover More About Liquidation
- What is Liquidation Of A Company?
- Why Would Liquidation Be Needed?
- When Would Liquidation For A Company Be Needed?
- Types of Liquidation Of A Company
- How is a Company Liquidated?
- Who Can Act as a Company Liquidator?
- How Much Will a Liquidation For A Company Cost & Who Pays?
What is Liquidation Of A Company?
- Liquidation of a company is a method used to close a UK Limited Company
- Liquidation will prevent a company from continuing to trade
- A liquidation can be for a company that can pay all those it owes money to (solvent) – click for more details
- A liquidation can be for a company that cannot pay all those it owes money to (insolvent) – click for more details
It is possible, under advice, that a business that operates within a solvent or an insolvent company could be transferred out to a new or different company that does not have the associated 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 Liquidation Be Needed?
- If the business that operates within a company is to no longer able to continue either at all or within that company
- The business has been sold to another company
- 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
Liquidation is not always the only option for a limited company closure and we’d be keen to understand your company’s position to lay out the options for its position.
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When Would Liquidation For A Company Be Needed?
For a Solvent company (can pay its debts and has cash or assets remaining)
- Tax is often a big factor in when 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?
- When does a full time employment role start?
- When does a business sale complete?
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 premises
- Enforcement action from those owed money is becoming more
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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Types of Liquidation of a Company
Liquidation types are split into two categories:
- The company can pay everyone it owes money to (solvent)
- The company cannot pay everyone it owes money to (insolvent)
For an insolvent liquidation 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 Types of liquidation above
- Voluntary means that the company directors and shareholders start the liquidation process at a time to suit them
- A Compulsory Liquidation is started through the courts usually through enforcement action for unpaid debts
A insolvent compulsory liquidation is the route 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 place the company into compulsory liquidation.
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Who Can Act as a Company Liquidator?
- Voluntary Liquidations can only have Licensed Insolvency Practitioners appointed
- A Compulsory Liquidation will appoint the Official Receiver a Company Liquidator; though it’s possible that an Insolvency Practitioner may be appointed as the Compulsory Liquidator at a later point
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, liquidation and rescue. Naturally we would recommend taking advice from someone that will act as the liquidator of your company and is therefore licensed.
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How Much Will a Liquidation For A Company Cost & Who Pays?
- We wouldn’t want to mislead you with eye catching headlines that turn out to be eye watering. 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
- A company will usually pay for its own liquidation 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 put a company into liquidation
- An insolvent or solvent liquidation with liquidation.co.uk will start from £3,000
- Click to learn more; Company Liquidation Costs
Look out for unlicensed advisors who will add their costs on to the fees of any liquidator and push the overall cost upwards.
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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 liquidation experts.
We’re here to make your life as simple as possible; we’ll take over any difficulties immediately.
We can start your company liquidation 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.
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 liquidation 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 liquidation is the right option?
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?