Help to close your business & start again
IS 2025 TIME FOR A NEW BEGINNING?
These past 3 years have been a very difficult and pressured time for many businesses. The stress of debt can have a significant effect on a business owners health.
Are the demands of HM Revenue & Customs getting too much as the business has never properly recovered from the pandemic and cannot cover its costs?
Are you worried about being unable to pay your employees, suppliers and yourself? Do you know what you are entitled to?
Chis back on his feet
Before the ‘lost Covid years, ‘ Chris’s business was doing OK, sure it was hard work, but he was prepared for that; he was building his business for his and his family’s future.
Then, Covid hit, and like most business owners, the rug pulled from under him, and overnight, everything changed. The following two years were hell. Open – closed – open – closed – so many false starts.
Chris did everything he could, changed the business model, cut costs, negotiated with his landlord and suppliers, took holiday payments and took out loans, all to survive.
It took its toll on him and his family, the worry, the stress, but somehow he got through to 2022, his business still alive but a shadow of the company it was pre-Covid.
What is your best option?
The starting point to know what would be the best course of action to take to achieve the outcome your after is to first establish the solvency of your business. Once the solvency of your business is known, we then have a clear path toward helping you get the result you want.
Take our business solvency test
If you are considering closing down your limited company, take our 60 Second Test today to see what options you have and the next step toward getting the outcome you want.
Once you have completed the test a member of our team will be in touch to talk you through your options and what happens next.
Liquidation & Recovery options available to UK Company Directors
Members' Voluntary Liquidation
If your company is solvent and has in excess of £25,000 in assets, then is it highly likely that closing the company using an MVL will work out to be more cost-effective and tax-efficient than simply making an application to strike off the business.
Cash that is extracted from a business using an MVL is treated as capital gains rather than income and so is taxed accordingly.
There are also other benefits to using this method as you may also qualify for Business Asset Disposal Relief (formally known as Entrepreneurs’ Relief) which halves the effective tax rate down to just 10%.
Creditors' Voluntary Liquidation
A CVL is a formal insolvency process that involves a licensed insolvency practitioner placing an insolvent business into liquidation.
Your company is classed as insolvent if its debts (including Bounce Back Loans) outweigh its assets, and when you can no longer keep up with your monthly liabilities as and when they fall due.
Closing your company through a CVL opens up the possibility of redundancy pay which may come in useful during this time.
If your company is insolvent and you would like to bring it to an orderly end, opting for formal liquidation through a CVL is likely to be the best solution.
Dissolution - Striking Off Your Company
Striking off a company is an informal way of bringing an end to an unwanted business.
The process is sometimes known as dissolving a company and involves directors submitting a DS01 form and informing the relevant parties.
Strike-off is only suitable for those companies without any outstanding debts.
If you do have debts and attempt to strike the company off, you should expect a creditor to lodge an objection which will see the process halted. Strike-offs are increasingly being rejected, particularly those which have outstanding Bounce Back Loans.
What other say about our service
Once we lost our biggest client, my business was in real trouble; I tried to turn things around but found I was digging a bigger and bigger hole for myself. When the bailiffs arrived at our offices, that was the final straw, and I started looking for advice and a way out.
Someone recommended wedo accounting, and I am so grateful they did, as this saved me, sorted everything out and enabled me to close my business and start again.
What a relief it was, and they made it all so easy. Thank you so much, especially James, who was excellent.
Ashkan
Liquidating a business for me was a frightening and emotional decision. I was so stressed out after Covid destroyed my restaurant business; it has never been easy, but our Shoreditch Pizzeria did well for over 15 years.
However, in October, we had to call it a day. We had no chance with debts, rising costs, and staff problems. I approached wedo accounting for help; nothing was too much trouble, and they explained everything in simple and easy-to-understand language. James made the process less daunting, and I would not hesitate to recommend them as a company.
Mariamu
Finding my business of 12 years insolvent because of an unexpectedly large debt set off constant letters, court threats, papers, and months of stress and sleepless nights; I needed to do something.
Turning to wedo accounting for help was a great decision. Although this was a very daunting situation, the whole process was explained, and I felt reassured by the first call.
This has been a first-class professional service throughout, and I highly recommend Second Chance if you are in a similar situation as I was. I am truly grateful.