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MVL – Member Voluntary Liquidation and IR35

MVL – Member Voluntary Liquidation and IR35

From 6th April 2020, IR35 will become legally bound on Contractors who operate through their own Limited Company. Contractors can either join the payroll of their end-users or join an off-payroll PAYE. Both Options will require contractors to close their Limited Company.

If you have large sum of cash in your business account, i.e. over £25,000 then Member Voluntary Liquidation [MVL] is the best route to extract your money in the most tax efficient manner.

How We at Asmat & Co – Can Assist You

In normal circumstance if you withdraw large sum of funds from the company you will fall in high tax brackets resulting in 30% to 35% tax. Under Member Voluntary Liquidation [MVL] route We would appoint an insolvency Practitioner who will distribute your money to you after all outstanding taxes had been paid. Under normal circumstances you would have to pay tax at 18% or 28% capital gains tax however with MVL you could only pay 10% on your assets as we would utilise Entrepreneur Relief. All Company Accounts submissions and Calculations for the MVL will be carried out by Asmat & Co and will liaise with Insolvency Practitioner throughout the filing process of the MVL.

Below is the step-by-step process of what is involved:

  1. Appoint a Insolvency Practitioner [IP] who is send out forms for you to sign
  2. Accounts prepared and submitted to HMRC and Companies.
  3. Liquidator advertises on Companies House and creditors submit claims.
  4. HMRC requests to pay any outstanding CT, PAYE and VAT.
  5. Companies Funds transferred to liquidation estate account.
  6. Approximately 75% paid as an initial distribution.
  7. Tax clearance received
  8. Remaining funds are transferred to your account
  9. Final documents filed to Companies House
  10. Company Struck Off

You would then need to declare your distributions in your Self-Assessment.

We are here to assist you through the MVL process from start to finish as we closely work with the Insolvency Practitioner

We have clients from all over the country and a good majority from Slough, Langley, Windsor, Maidenhead, Hayes, Southall, Reading, Hayes, London, Manchester, Birmingham, Glasgow, Edinburgh, Liverpool, Wales and from other smaller towns in the country.

For FREE CONSULTANCTION RING US ON:

Landline: +44 1753 424968, +44 2035 988621
Mobile: +44 7896 531706 (whatsapp)

Asmat Accountants

Asmat & Co are one of Berkshires’ leading independent firms of Accountants servicing a growing and satisfied clientele. At Asmat & Co expert advice is available from senior qualified Chartered Management Accountants (ACMA) and Chartered Certified Accountants (ACCA), at very attractive packages tailored to suit varied individual and business requirements. The professional team at Asmat & Co. possesses extensive experience in providing accounting, tax, finance transformation and business advisory services to a diverse customer base.

CONTACT US


  • 84 High Street, Slough, Berkshire SL1 1EL, United Kingdom
    Get directions >>
  • 01753 424968 / 02035 988 621
  • 01753 437109
  • info@asmataccountants.co.uk

Reading Office

  • 365-367 Oxford Road, Reading, RG30 1HA
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  • 0118 950 9841
  • reading@asmataccountants.co.uk



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