Close your company by the overall cheapest and most tax efficient way.
You may qualify for Redundancy Payments which can cover costs and leave money over for you.
3 Ways To Close A Company
If your company has creditors who are likely to object to a dissolution then a Creditors’ Voluntary Liquidation, which is initiated by directors, is usually most suitable.
Redundancy Payments may be claimable from the National Insurance fund.
Our costs are from £999 + disbursements and VAT.
Government Funded Redundancy Payments
When an insolvent company closes, employees may be able to make a claim from the National Insurance Fund and receive payments for outstanding wages, holiday pay, pay in lieu of notice and tax free redundancy.
This can cover the cost of the liquidation and leave money over for you.
I was going through a difficult period. To discover I was entitled to over £14,000 redundancy, tax free, when I closed my company changed everything.
Talk To The Experts
Whether you have chosen to close your company and wind-up its affairs or you have creditors threatening to take action against it, we can provide guidance and reassurance on the best way forward.
Jane Hardy - Insolvency Practitioner
Advantages Of Voluntary Liquidation
Keep more control - close your company on your terms
Gives directors a clean break
Allows you to close a potentially insolvent company with no further liability (unless debts have been personally guaranteed).
Quick and cost effective
Can be funded using company assets such as cash at bank, sale of assets, book debts etc.
Your duties as a director
It shows creditors you have done the right thing by taking professional advice and can steer you away from the implications of wrongful trading.
Claim redundancy payments
Employees and potentially directors can make a claim from the National Insurance Fund and receive payments for outstanding wages, holiday pay, pay in lieu of notice and redundancy.
Bounce Back Loans and Liquidations
Can I liquidate my company if it has taken out a Bounce Back Loan?
In short yes. Businesses may still find trading difficult during or after this turbulent period, even with the extra funds from the loan. Recovery may not be realistic so liquidation and closure is the most suitable course of action.
What happens to the loan in liquidation?
In the event of a company being liquidated, the bounce back loan turns into unsecured debt.
Can I be held liable for an unpaid bounce back loan?
Not usually. In the event of a company being liquidated, any personal guarantees signed by a director means that director remains liable for the debt.
Directors however, generally are not liable for an unpaid bounce back loan because they usually 100% guaranteed by the Government and not by the director.
The Bounce Back Loan Scheme allows eligible businesses to borrow upto £50,000 to cover expenses to protect customers and staff, and to recover from the difficulties caused by Coronavirus.
Get A Free Consultation
We are the Focus Insolvency Group and have years of experience in dealing with complex matters for personal and corporate debts.
Speak To Us About
Discover the best route to take your business. We can look at all the options. Speak to one of our experts today.