You could say an MVL is a positive end to a company’s life. The process closes the company, leaving no outstanding matters and provides a potentially tax efficient and lucrative exit for company shareholders. An MVL is a tax efficient means of closing your solvent company and unlocking the capital.
An MVL is a POSITIVE process - if you have a cash rich company and want to keep your tax bills low, then an MVL could be the way forward.
If you can answer YES to the questions below, then you are ready to make the first step with us.
Sometimes an MVL can be a straightforward and simple process, on other occasions the detail to complete the process may be more complex. Frost Group understand that there is not a standardised 'one size fit's all' MVL product for our clients. We want to provide a product to help you unlock the cash from your limited company as easily and tax efficiently as possible and so we have branded our product into three categories, and the price will depend on the complexity of the service required.
Our Bronze product is a fixed fee of £1,000 and is our most popular service level. This is ideal for contractor companies with a simple corporate structure of one sole director and shareholder.
Disbursements for bonding and advertising are additional costs but the VAT charged on these costs is recovered by us for you during the course of the liquidation. This product suits simple contractor MVL's and also companies who have a cash at bank only figure on their balance sheet.
Our Bronze MVL is ideal for simple contractor companies, with one sole director and shareholder. Due to recent updates in our Onboarding and KYC compliance any additional shareholders and directors will be charged at £100. This price change came into effect on 1 January 2024.
If company accounts are finalised, all CT and VAT liabilities are paid and there is a cash at bank only figure (no assets or liabilities) then your company should fit into our Bronze Service.
The disbursements for an MVL comprise three statutory advertisements at a cost of £99.00 each plus VAT in the London Gazette, together with a statutory bond which represents a specific charge against the case for professional indemnity cover. The quantum of the bond paid will depend upon the amount of assets held in the Company when it is placed into MVL. I have attached a copy of our specific bond rates for your information. There is a further 50% discount for non-cash appointments and the majority of our bronze clients fall into this category, as there is no requirement to transfer your company funds into our client account, instead the distribution is treated as a distribution in specie. (The funds are taken as a director's loan and distributed on day one of liquidation). There will clearly be a requirement for an indemnity but we have a standard document for this purpose
It really is simple, either you or your accountant provide the paperwork and we complete the whole process for you.
We will provide the Declaration of Solvency and all of the Meetings paperwork to you, which will be emailed to you prior to appointment. Once these are completed and returned to us, we then draft the initial letters to Companies House and the various HMRC offices for VAT, CT and PAYE complying with our statutory and regulatory duties.
This is most definitely our most popular service, if you are thinking about an MVL call us on 0345 260 0101 (
Suitable for consultant and contractor firms or firms with a cash only balance sheet.
This is an advice driven service whereby we ensure there will be no comeback from HMRC. In partnership with your tax accountant we will ensure that the tax is correct and you will have complete peace of mind that any difficulties that may arise are resolved.
Our Silver Service starts from £2,500 although if liquidating more than one company please speak with our Insolvency Practitioner, Jeremy Frost, who will discuss the options available.
There are additional charges for disbursements of Gazette and Bond. For Silver Service MVL's we do not charge the additional £100 Onboarding fee for additonal Directors or Shareholders.
Suitable for consultant or larger companies where the Board has already dealt with all asset realisations.
This is our bespoke and advice driven service for complex MVL's requiring a higher degree of expertise and skill. From the start, Frost Group will be proactive in discussions with a company's professional advisors particularly in cases of restructuring and realisation of going from a live business to a liquidation. We will take a commercial approach to asset realisation and deal with all creditors and contingent liabilities.
Suitable for complex closures where a commercial approach is required.
Clients often wonder what a disbursement is. Quite simply it is a cost/specific expenditure which relates to the administration of the MVL. In the administration of our MVL's Frost Group will charge disbursements on bonding and statutory advertising within the London Gazette at the cost price to us. There will be no sneakily hidden surprise additions that you will not be made aware of.
However, in the case of a Gold Package MVL there may be external supplies of incidental services specifically identifiable to the case, eg large volume postage, printing, room hire and document storage, this information will be disclosed and the costs recovered.
There are two main types of disbursements associated with an MVL, these are statutory advertising and bonding:-
There are three statutory notices required which will appear in the London Gazette. The Gazette can be accessed by clicking this link The London Gazette. The Gazette offers a permanent official public record of important statutory and non-statutory notices that can be used to support legal and other processes and act as a means of advertising legal notices. The initial three Statutory Notices to be advertised as per legislation rules in the London Gazette are:-
Prices (excluding VAT) valid for the three adverts are £297.00.
Bonding is an insurance policy to ensure that your money is safe whilst held in our firm's client account. It basically protects your money against any fraud or malpractice by our staff. Frost Group use the services of Aon Risk Solutions and all rates are charged at cost price, there is no mark up or added charge passed on to our clients, and we believe they are the most cost effective and secure available. Frost Group's specific bond rates effective 29 December 2019 are competitively priced, with premiums commencing from £6.
The majority of our MVL's are non-cash, ie the company assets are distributed in specie and these attract a 50% discount from our insurers. Our non-cash MVL rates are listed below:-
Cases with assets under £500 – £6.00
Assets £501 - £5,000 – £10.00
Assets £5,001 - £10,000 – £15.00
Assets £10,001 - £25,000 – £20.25
Assets £25,001 to £50,000 – £36.75
Assets £50,001 to £100,000 – £59.25
Assets £100,001 to £250,000 – £99.00
Assets £250,001 to £500,000 – £140.63
Assets £500,001 to £1,000,000 – £198.00
Assets £1,000,001 to £2,000,000 – £290.63
Assets £2,000,001 to £3,500,000 – £375.00
Assets £3,500,001 to £5,000,000 – £515.63
Assets over £5,000,000 – £600.00
VAT is chargeable on our fee and also on advertising in the London Gazette and also for the bond. If the compan has been registered for VAT in the twelve months prior to Liquidation we are able to recover the VAT element of our invoice (and also your accountant's last invoice) on behalf of the company and this is refunded to a nominated shareholder during the course of the Liquidation.
We have consciously developed a competitively priced and easy to use Bronze Service MVL.
Aimed initially at contractors closing down their limited companies to move into employment, we have streamlined our product so it is now accessible to limited companies with up to four shareholders whose accountants have completed their company's cessation accounts and relevant HMRC filings.
Completion is straightforward - here are the steps of our Bronze Service MVL:
Frost Group are now Liquidators of the company and will complete the following tasks:-
We aim to complete all Bronze Service MVL's from engagement to final filings with Companies House within a period of six months.
Most importantly though, using a distribution in specie you do not have to wait six months to have access to your company's money.
Correspondence is via both email and telephone - if you are interested in this service please either telephone our office on the following number - 0345 260 0101. Alternatively, email enquiries@frostbr.co.uk - we look forward to hearing from you.
Perhaps your company may not be able to meet all the criteria required for our Bronze Service MVL or you may not require all the benefits of our Silver Service; or indeed feel the additional cost of a Silver Service is not warranted.
In these circumstances we have adapted our Bronze Service to form a Bronze Plus Service, and the following charges will apply, notably in respect of fulfilling HMRC filings:
Requirement to de-register for PAYE/NIC pre-liquidation – £100.00
Requirement to de-register for PAYE/NIC pre-liquidation – £100.00
Requirement to file PAYE returns to date of de-registration – £150.00
Requirement to file VAT returns to date of de-registration – £150.00
Requirement to file corporation tax return to date of liquidation – £150.00
Requirement to file corporation tax return to date of cessation of trading – £300.00
PAYE refund – £250.00
VAT refund – £250.00
Corporation tax refund – £250.00
In certain circumstances the directors may wish the company to enter Liquidation as soon as possible and do not want to wait for HMRC refunds to be refunded into the company bank account. We can deal with these HMRC refunds via our client account, and the additional cashiering charges listed above will apply:
Should you have any questions please either telephone or email:-
Kelly Walford or Julie Frost | Call 0345 260 0101
A Members' Voluntary Liquidation, or "MVL", is a legal process whereby a solvent company is wound up and dissolved. The primary objectives are to realise and to distribute the surplus assets of the company once all outstanding matters have been resolved and any remaining creditor claims settled. We have a portfolio of products to suit all types of MVL's, with prices starting from as low as £1,000.
Jeremy Frost
Don't hesitate to call our offices on 0345 260 0101 to discuss your MVL requirements. We have a product to suit all limited companies and advice expertise which is never compromised.
Remember that we do not offer tax advice on this product so please speak with your own tax advisor.
Please call our offices on 0845 260 0101 to discuss your Members Voluntary Liquidation in more detail with an Insolvency Practitioner. All initial calls and advice are completely free of charge.
As many with regular contact with HMRC can attest, there are a number of ways in which they affect the amount of tax we pay:
In the first two there will usually be an element of consultation and discussion on what HMRC believes the present position to be and how it is going to be changed.
With the third case, all those engaging with HMRC see is calculations and action changing supported by rather unconvincing correspondence which seeks to suggest that nothing has changed!
In November, I first read of HMRC taking a test case to clarify when Directors loans might be treated as income, and when utilising a Members Liquidation it might be considered as capital. The same story has been repeated by a number of “advisors” and is now regularly repeated to me by potential clients. So I decided this week to try and resolve exactly what was going on.
The results of my investigations were inconclusive and I was certainly not able to identify the case nor even that a case was being brought. Yes, it appears HMRC are looking to clarify (limit) the present go-to approach of business owners borrowing money from their business once a month with those loans being written off (or not) annually by a dividend.
I don’t think many taxpayers would criticise HMRC’s approach, provided of course proper value can be given to financial risks being taken by the families behind many of these businesses, and, in most cases a little more admin will allow the status quo to be maintained.
But, and I am quoting a tax advisor I use:
“So I think this is a warning shot. I think that the test case HMRC will be looking for will be someone who has wilfully kept their taxable income declared on their returns low but drawn substantial sums over a long period of time. This would maximise their chances of success that the drawn monies are taxable as dividends (i.e. as income not capital). Anyone who has left their monies in the Company and draws them down shortly before the liquidation is a case that HMRC would not wish to pursue as there is too high a risk that the case could be thrown out”.
Although I can’t give tax advice I will continue to rely on how HMRC have dealt with our cases:
On the one hand, with a client who had been taking loans over a series of years: He settled with HMRC who considered the loans to be income. Alternatively HMRC have telephoned us and asked when the loans were given. Under our Bronze service we require to see a bank statement which equals the distributable reserves, before proceeding to suggest the account is closed in anticipation of the winding up. We explained this to HMRC who quickly made their excuses and left.
If anyone can get a definitive answer from HMRC about their present policy on this area then the world is waiting. Good luck!
Sole Director and Shareholder
Suitable for contractors
Distribution in Specie –
no requirement to transfer funds to the Liquidator
Access to funds on day
one of Liquidation
Best MVL if company has stopped trading with liabilities paid and a cash balance
Claim Business Asset
Disposal Relief
Prices start from:
Prices start from
Plus disbursements
Plus VAT (usually reclaimable)
Advice driven service
Tax Friendly – claim Business Asset Disposal Relief
Quick access to 75% of funds on day one of liquidation
Best MVL if Section 455 interest is due
Best MVL if corporation tax not finalised there are assets on the balance sheet and employees
Suitable for contractors, consultants and property companies
Prices start from:
Prices start from
Plus disbursements
Plus VAT (usually reclaimable)
Bespoke and advice
driven service
We will work with the company’s professional advisors
Restructuring and realisation
of going from a live business
to liquidation
Taking a commercial approach to asset realisation
Dealing with creditors
Contingent liabilities
Prices start from:
Prices start from
Plus disbursements
Plus VAT (usually reclaimable)
Our team member below will be able to help with all your questions
The benefits to shareholders of winding up a company in a solvent liquidation are attractive due to the difference in rates between Capital Gains Tax and Income Tax along with Entrepreneurs Relief. Instead of the higher rate taxpayer paying 40% to 50% on a distribution of assets, with an MVL assets can be distributed and capital gains tax rates will apply at 18% or 28%, plus the costs of the liquidation. The MVL will:
We are experts in this field with a designated department dealing solely with this type of liquidation. We provide MVL services from our offices in Bromley, London and Leicester, for businesses and contractors nationwide. We provide a fixed fee quote and a comprehensive breakdown of the disbursements, which will differ depending on your circumstances.
Our MVL product is tax efficient and competitively priced and you can be assured of expert advice based on expertise and experience. Good advice is key when managing an MVL – if the process is not handled diligently then you could face many years of tax investigations and not achieving the result that you wanted. We are also friendly and efficient.
If you are a contractor or shareholder of a limited business you can call us on 0345 260 0101 to discuss your requirements in more detail.
At Frost Group, we want to make things as easy as possible for you. That is why, if you can’t come to us, we’ll come to you. We operate face to face, nationwide meetings, wherever is most convenient for you.
Court House,
Old Police Station South Street,
Ashby de la Zouch LE65 1BR
0345 260 0101
enquiries@frostbr.co.uk
Proud members of
.svg)
.svg)