Get your money out with a Members Voluntary Liquidation.
For any business, watching their cash reserves drain away or dry up is heart-wrenching. If you have at least £25,000 in the business, it might be worth getting the money out through a Members Voluntary Liquidation (MVL) before it’s too late.
Unlike the liquidation of an insolvent company, a MVL is a formal, voluntary procedure initiated by you. A solvent business may choose to enter into a MVL for any number of reasons including retirement or if the director(s) decide to sell or close the business.
Why choose a MVL?
- Pay a lower tax rate on dividends – this is because shareholder dividends are classed as capital, rather than income in a MVL. This could mean a tax savings of up to 25%, depending on your income bracket.
- Benefit from a flat tax rate of 10% – with a MVL you could qualify for Entrepreneurs Relief which means you may be able to pay a flat rate of 10% on up to £1,000,000 of gain.
- Get your money fast – with a MVL the money could be transferred to you within days.
- It’s tax-efficient for shareholders – we work with and advise shareholders to ensure that monies are paid in the most tax efficient way, at the most tax-efficient time. The InSOLVEncy Company recently helped one shareholder save £44,000 in taxes, and a husband and wife save over £53,000 in taxes.
- It’s inexpensive – The InSOLVEncy Company offers free MVL advice. If you decide a MVL is right for your business, our fees start at just £1,995 + VAT and any third party fees, where applicable.
- Opportunity to start something new – with a MVL you can start a new business. Speak to a licensed practitioner, like The InSOLVEncy Company, for further information and advice.
How does a MVL work?
- You instruct a licensed practitioner to close the company on your behalf.
- The licensed practitioner prepares the required paperwork to place the company into liquidation.
- The directors and shareholders sign the paperwork to formally agree the close of the company, putting the company formally into liquidation.
- The licensed practitioner liaises with shareholders to agree the most tax-efficient final distribution of the funds.
- Funds are paid to shareholders, usually within a few days.
- The licensed practitioner liaises with your accountant and HMRC to ensure final corporation tax returns are submitted and all other matters are attended to.
- Your company is dissolved.
For information and advice on MVLs, or if you have any other questions relating to your business, get in touch with Gareth and the team at The InSOLVEncy Company for a free, confidential, no-obligation consultation on 01823 216156 or email us at firstname.lastname@example.org.