MVL recommendations

[Untouchable1]

Hi All,

After almost 8 years, I'm getting out of the contracting game.

I'm going to liquidate the company and would like to hear the communities recommendations for MVL services.

I'm particularly interested to hear from people who have recent first hand experience!

Thanks,
Untouchable1

[MrButton]

People here recommend maslins (MVL Online)

[northernladuk]

+1 for MVLOnline

[Kugel]

From my personal experience I would recommend Clarke Bell. Compared to MVLOnline they can do 100% initial distribution (MVLOnline does 75%) and you can reclaim VAT (MVLOnline does not do it).

When I done my research into this I used Insolytics Insolvency Practice League Table to check how active particular liquidator is.

[ChimpMaster]

From my personal experience I would recommend Clarke Bell. Compared to MVLOnline they can do 100% initial distribution (MVLOnline does 75%) and you can reclaim VAT (MVLOnline does not do it).

When I done my research into this I used Insolytics Insolvency Practice League Table to check how active particular liquidator is.

But what do Clarke charge?

[cojak]

The other company I was recommended offered 100% initial distribution but wanted £3500 for it.

I decided that for the £2000 I could wait.

[Petrolhead]

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.

[northernladuk]

People accounts shouldn't be much more difficult put plenty of stories of cockups. No way would I let them do it.

[Maslins]

I believe Clarke Bell's charges are similar to MVL Online's (they quote "from £995").

Re the 100% vs 75%, you do of course get the same amount in the long run, being the balance of your company's retained profits. Paying out 100% nearer the start is more of a risk. If a creditor claim does materialise after distributing all funds, then the liquidator would typically have to pursue the shareholder(s) to get some of the distributed funds back, to then settle the creditor. Paperwork then all needs adjusting, as initial distribution turns out to have been incorrect. A pain for all concerned, and may well to lead to additional fees.

Retaining 25% until HMRC clearance is obtained and period for other creditors to object, to us at least, is a sensible compromise. Client still gets the lion's share early on, damage if a creditor does materialise a bit later is reduced. Also can have the side personal tax benefit of often meaning distributions straddle two personal tax years so two annual exemptions for CGT purposes.

VAT on MVLO's fees can be reclaimed if you're happy for us to invoice in advance of your company de-registering.

Only other thing I'd throw in to the mix is that, like with contractor accountancy, whilst there's a clear "package" that you're buying for a set fee, it's still a service provided by humans. Hard to quantify good customer service, but we're proud of MVLO's 60 Google reviews earned gradually over the last 5 years. Every one of them is 5 star.

[hammertime1985]

I believe Clarke Bell's charges are similar to MVL Online's (they quote "from £995").

Re the 100% vs 75%, you do of course get the same amount in the long run, being the balance of your company's retained profits. Paying out 100% nearer the start is more of a risk. If a creditor claim does materialise after distributing all funds, then the liquidator would typically have to pursue the shareholder(s) to get some of the distributed funds back, to then settle the creditor. Paperwork then all needs adjusting, as initial distribution turns out to have been incorrect. A pain for all concerned, and may well to lead to additional fees.

Retaining 25% until HMRC clearance is obtained and period for other creditors to object, to us at least, is a sensible compromise. Client still gets the lion's share early on, damage if a creditor does materialise a bit later is reduced. Also can have the side personal tax benefit of often meaning distributions straddle two personal tax years so two annual exemptions for CGT purposes.

VAT on MVLO's fees can be reclaimed if you're happy for us to invoice in advance of your company de-registering.

Only other thing I'd throw in to the mix is that, like with contractor accountancy, whilst there's a clear "package" that you're buying for a set fee, it's still a service provided by humans. Hard to quantify good customer service, but we're proud of MVLO's 60 Google reviews earned gradually over the last 5 years. Every one of them is 5 star.

I hope you don't mind me asking a few questions regarding this process:

- 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?

- 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?

- 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?

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

Thank you