Company close down (via MVL) and moving into permanent role Company close down (via MVL) and moving into permanent role
Posts 1 to 4 of 4
  1. #1

    Nervous Newbie


    Join Date
    Jun 2014
    Posts
    3

    Default Company close down (via MVL) and moving into permanent role

    Looking to close down ltd company via MVL to take up a permie role. I'll be starting the permanent role pretty much straight after my contract ends and given the timing there'll be at least one invoice outstanding.

    1) From what I understand, the MVL process can't begin until all invoices are settled is that correct?
    2) Can I "resign" as an employee but remain as just the director of my company whilst the remaining invoices are paid out?

    Ideally I would like to cleanly close down the company before I start as a permanent but given the timing there will likely be an overlap so just trying to figure out how to best go through the transition. Due to visa conditions, once I start the permanent role then I can't be employed by anyone else including through my ltd company.

    Any thoughts or helpful advice would be greatly appreciated

    Thanks!

  2. #2

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    40,799

    Default

    Speak to Chris Maslin of MVLOnline.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  3. #3

    More time posting than coding


    Join Date
    Jan 2013
    Location
    Watford & London
    Posts
    200

    Default

    I am doing a MVL for a client and the liquidator has asked that all invoices are settled. Company can take 3-6 months to close even if simple striking off. Best to speak to your accountant about implications of being a director and not an an employee, but the company could issue a P45 if you need to cease being an employee (but get advice before doing so).

  4. #4

    Contractor Among Contractors


    Join Date
    Sep 2009
    Location
    Tunbridge Wells
    Posts
    1,630

    Default

    Legally, liqudations can start whilst your company is still trading. However that typically means a lot of work for the liquidator. Therefore most of the fixed, low cost type operators insist on you doing a bunch of things before they get involved. This will include ceasing to trade, submitting all final tax returns, and tidying the balance sheet right down. This way their role is a pure liquidation one, with negligible accounting/tax input required, hence enabling them to keep costs lower.

    Typically one of the tasks required would be for you to leave the company as an employee anyway, and also de-register the company as an employer. You'd still be a director, but not on the payroll, and P45 issued.

    Any kind of company close down is going to take months rather than days/weeks, so realistically it will still be alive (even if not trading) when you start the permanent role...unless you take a huge break from working between. Hopefully that shouldn't cause you any issues.

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •