MVL recommendations

[Maslins]

- How long after receiving the funds (once HMRC approval obtained and no creditors come forward) would you ideally need to keep these safe in the event that a subsequent investigation was opened?

I'm guessing where you say "you" in the above you mean you as client? Realistically if the liquidator got HMRC clearance, HMRC would be hard pressed to raise an investigation into company affairs after that. It is legally possible, but would only happen if significant new information came to light which they didn't have at the time, potentially suggestiong fraud/similar on the part of the company's directors/shareholders.

If by "you" you mean the liquidator, then no time at all. HMRC clearance virtually never arrives before normal creditor claim period has ended, so typically as soon as liquidator has HMRC clearance they can move to finalise things.

NB the HMRC clearance we talk about is HMRC confirming that company tax matters are clear. Entirely separately to that you've got your personal tax declarations. You as an individual will continue to exist and potentially be open to challenge based on personal tax submissions.

- Following on from the above, is it recommended to still have IR35 insurance running even when company officially closed down and if so, how long after the company is closed should you keep this going for?

I'm reluctant to answer this. I think IR35 insurers would say "yes". I personally think the risk of challenge post liquidation would be extremely low...but it could happen.

- If you wanted to get the funds sooner, could you simply just take them all out as dividends (and take the tax hit) and still close the company down, would this process be quicker if there are no funds in the business?

Yes, definitely, and you then wouldn't need an MVL. However the personal tax bill will often be much higher (typically the primary motivation for a service like ours is to get large amounts of final company funds taxable as capital gains).

- Assuming you have no debt, what other reason would a potential creditor want to come forward?

If you have no company debt, there will be no creditors to come forward. Of course sometimes there's disagreement over how much is due, or possibly forgetfulness. Part of the role of liquidator is to publicly advertise the liquidation, so creditors can see it and object if they see fit. We'll insist clients confirm there are no creditors prior to us getting involved...but sometimes one creeps out of the woodwork. Most commonly a final tax debt they forgot to pay, or thought a direct debit would collect but maybe was cancelled too early. On occasion it's a (non HMRC) supplier. Low value ones that can cause annoyance include mobile phone contractual monthly payments, things like that.

[splitbrain]

I asked SJD about this, and they charge £2000 + VAT.

Since many IT contractors use SJD it seems a straightforward choice to use them as they are hand in glove with your accountant, which should minimise comms and document turnaround...?

Wouldn’t bother shopping around to save a few hundred. It’s not worth complicating the situation by adding a third party in my mind.

I know some people moan about SJD but it’s just a bunch of forms, tasks and docs - any competent contractor can keep an eye on it.

TO be fair to SJD, their insolvency service by Philip Beck was seamless, I was going to use MVLonline but the SJD inhouse process was too convenient and besides the total cost would have been the same due to SJD holding you hostage for 1K to close the company down anyway.

So as much as SJD take the piss with the shutdown costs before it gets to the liquidator, Philip Beck was great, 100% distribution within 6 weeks and about 5 forms to fill in. I was happy with the process, if you are an SJD client then keeping it with them appears to work well.

When I do spin up another LTD in a couple years time (if the market is still there...) then I'll be using Dolan Accounting though.

[craigy1874]

(if the market is still there...) .

I'll crack the jokes

[Craig@Clarity]

+1 for MVLOnline

+1 for Maslins too. Always referred Chris due to positive feedback from my clients. Straightforward and easy service.