We have a wealth of experience in MVLs:
Total number of MVLs:
1
,
2
8
2
Total cash distributed (£):
1
8
3
,
9
5
6
,
1
8
8
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Contractor MVLs

Are you a contractor looking to close down your solvent company?

An MVL could be the most tax-efficient way…

There are many different reasons why you might want to close down you solvent contractor company, including:

  • you’ve just completed a contract
  • you’ve decided to work for a company as a full-time employee
  • you are approaching retirement
  • you might simply want to cease contracting and unlock the cash from your limited company.

Whatever the reason, there are different ways for you to close down your contractor limited company. Depending upon how much cash there is in your company, using a Members’ Voluntary Liquidation (MVL) could be the most tax-efficient way and save you thousands of pounds.

By using an MVL the funds to be distributed are subject to Capital Gains Tax (CGT), rather than Income Tax. If you qualify for Entrepreneur’s Relief (ER) you can benefit from a 10% CGT rate on distributions.

This means considerable tax savings for contractors.

We aim to distribute the assets of your company to shareholders as quickly as possible, usually after 35 days from the date of Liquidation.

Our standard fee for an MVL is £995 +VAT, +disbursements (see below for the disbs).

There is no need for face-to-face meetings – meaning you can begin the MVL process wherever you are based.

The MVL Process

Members Voluntary Liquidation

Are you looking to close down a solvent company in the most tax effective way?

Does the company have total distributions of more than £25,000?

If so, new legislation (from 1 March 2012) means that the MVL is likely to be your best option…

The relevant disbursements

These are all ‘at cost’.

Statutory Adverts

To comply with legislation and best practice, adverts needs to placed to give any possible creditors the chance to come forward to lodge a claim.

Three adverts need to go in the London Gazette (or Belfast Gazette, as appropriate).

The cost of these are: 3 x £72.00 = £216.00 +VAT = £259.20

For a company registered in Scotland, the 3 adverts need to go in the Edinburgh Gazette and an additional advert needs to go in the Scottish Daily Mail.

The cost of these are: (3 x £72.00) + (1 x £69.00) = £285.00 + VAT = £342.00

Statutory Bond

A compulsory bond needs to be taken out. This provides you with security whilst your funds are under the control of Clarke Bell. The bond fee is dependent on the the assets of the company.

Below are the current rates: effective 1 May 2015.

Asset Value (£)
Premium (£)
10,001 – 25,000
20
25,001 – 50,000
48
50,001 – 100,000
80
100,001 – 250,000
120
250,001 – 500,000
185
500,001 – 1,000,000
240
1,000,001 – 2,000,000
500
2,000,001 – 3,500,000
560
3,500,001 – 5,000,000
675
Over 5,000,000
800

What our clients have said about their MVL…

“I am very impressed with the professional and efficient approach adopted by Clarke Bell. Our MVL was handled in a timely manner and I was kept informed of progress throughout.

This is an excellent service which is also very good value for money – I am pleased to recommend Clarke Bell without reservation.”

and…

“Thanks so much for your help. You have been amazingly efficient.”

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