Diary of an MVL Manager

Diary of an MVL Manager

The inside story of what happens when a simple MVL does not go as planned…

Execution

Frost Group Limited (“FGL”) were approached in December 2019 to provide a simple liquidation for a company that ceased to trade in 2018, the company didn’t want to file Accounts for May 2019 so we needed to act quickly (liquidation by 28 ofFebruary 2020).

At this point we were told that all taxes and Accounts were up to date, so the client opted for our Bronze Service. No problem so far!

We contacted the client but did not receive a response until early February 2020, at which point the looming new tax year was approaching. Onboarding  was only completed on the 25^th  February 2020, so we were running out of time!.

It then emerged there were substantial historic unpaid directors loans so questions had to be asked regarding S455 tax.

So, by March2020 we were way outside of our agreed service level and an upgrade was needed.

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Here’s where it got interesting

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In April 2020 the company changed its officers and ownership, meaning new onboarding was needed…  and by September 2020,  Covid had hit and and we’d had no word from the client.

New Accounts and CT were  prepared and submitted by January 2021 so, at last we were ready to liquidate….

But, we still hadn’t been paid and had to redo the onboarding procedures for a third time!  Our pre-appointment fee is finally paid after new ID was provided in April 2021 and by May 2021 we finally liquidated the company and distributed the loans in-specie.  

Obviously, we received a S455 claim from HMRC and  and after strenuous dealing with HMRC we managed to get a final figure of interest to be paid by the client… Now all we need to do is get the client to pay it!

Distribution Value

£4.75m

HeadacheValue

Insurmountable

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