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MVL Question

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    MVL Question

    I hope you're all well. I am at a junction where I need to make a call on if I should continue my Ltd company (with >25k in profit) or not. With all that is changing in IR35 space, although it is pushed out until 2021, being a HR professional, I have seen blanket rejection from major firms to work with those hoping to get an outside contract; I feel time is right to wind it up. I spoke to my accountant recently and he'd advised to wait until 2 year anniversary to utilize MVL. He'd been kind enough to refer me to a practitioner with rough costs of c£5,000 to close the business and distribution of remaining profit.

    I have looked online and see that the range of fees/services in this sector ranges from somewhere north of £1,000 upto £7,500. Whilst I respect, direct referral may, or may not be allowed on here, I was wondering if someone has gone through this and have some guidance on choosing a good liquidator. Also, someone who'd graduated from Google University had commented that MVL might impact your credit rating but couldnt find anything with it?

    Thank you again for reading and any help/comments will be greatly appreciated.

    Kindly

    #2
    Can't see how what you do with a company would affect your personal credit rating.

    Type the following in to Google to browse the raft of MVL threads we have.

    MVL site:contractoruk.com

    And give Chris a call at MVLOnline.

    Jobs done.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by northernladuk View Post
      Can't see how what you do with a company would affect your personal credit rating.

      Type the following in to Google to browse the raft of MVL threads we have.

      MVL site:contractoruk.com

      And give Chris a call at MVLOnline.

      Jobs done.
      I can see how you've won the POTY award :-) Appreciate the assistance.

      Ps: I kept searching "MVL" in the forum, no wonder nothing showed up!

      Comment


        #4
        I would guess the 2 year thing is so your accountant can better justify you qualify for ER.

        I'm part owner of MVL Online, so inevitably biased(!), but fee is £995+VAT plus disbursements at cost. Typically ends up circa £1.6k-1.8k all in, depending upon your final net asset figure.

        Do be aware that there's fairly strict criteria to be able to offer liquidations at that price. Most I imagine you/your accountant would easily be able to achieve...but may be slightly more work for your accountant in advance of the liquidation than might be the case with their preferred partner.

        Re your credit rating...nobody knows with 100% certainty, as the criteria the agencies use is a closely guarded secret. The liquidation will be publicly visible. However, it will clearly state it's an MVL. Anybody savvy will be aware that means your company didn't leave any creditors unpaid, so we see no valid reason why it might impact your credit rating. Having said that, we have had one or two clients at some point mention they've had to do references/mortgage applications/insurances which have asked the question "have you ever been director of a company that's gone into liquidation". Even though it would have been an MVL, the only honest answer to that would be "yes"...which can lead to a bit of extra pain. However, we've literally heard that a handful of times in ~1,500 liquidations.
        Last edited by Contractor UK; 14 July 2020, 10:42.

        Comment


          #5
          Slight aside from credit rating, there does seem to be something going on with insurance. I saw a statement of fact today (insurance in Ireland): "You or your directors or partners have never been owners, principals or partners of any other firm involved in this or a similar business which has been declared bankrupt, wound up or ceased trading." Someone else mentioned this in a UK context the other day.

          Comment


            #6
            Originally posted by Old Greg View Post
            Slight aside from credit rating, there does seem to be something going on with insurance. I saw a statement of fact today (insurance in Ireland): "You or your directors or partners have never been owners, principals or partners of any other firm involved in this or a similar business which has been declared bankrupt, wound up or ceased trading." Someone else mentioned this in a UK context the other day.
            I expect a call to the broker would clear that up. I can't see why a straightforward MVL would be a cause of worry to an insurer.
            "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
            - Voltaire/Benjamin Franklin/Anne Frank...

            Comment

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