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MVL Recommendation?

MVL Recommendation?

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Hello, I wonder if anyone can help me.

I have a client company who wishes to wind up his company and obtain capital treatment on the monies distributed to the shareholders and, hence, the liquidation will need to be via Members Voluntary Liquidation (company is solvent).

When ESC C16 came to an end, many contributors were concerned about the cost of taking this route - but I recall, felt that it would not be as expensive an option as first thought, due to the potential influx of these cases.

I've contacted a couple of Insolvency Practitioners and am getting seriously high quotes - lowest £3,500 plus vat and highest £7,000 plus vat. This is a non-trading company holding roughly £85,000 worth of shares and £25,000 cash with no creditors other than a directors loan of roughly £40,000.

These quotes seem very high to me - do any AWebb members agree? And has anyone used a reasonably priced firm that you could now recommend?

Thanks in advance

Diane

Replies (13)

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By Ding Dong
24th Sep 2013 14:51

£3k - 3.5k is about right

Where it is a solvent MVL and all books are nice and clean (That is what I was quoted recently) 

 

Thanks (1)
Man of Kent
By Kent accountant
24th Sep 2013 15:28

Hold on!

Try £995 plus vat

Its run by a member on here, so no doubt he'll be along soon.

 

Thanks (1)
Replying to DJKL:
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By Ding Dong
24th Sep 2013 15:41

WOW !

Kent accountant wrote:

Try £995 plus vat

Its run by a member on here, so no doubt he'll be along soon.

 

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Replying to paulgrca.net:
By northernmonkey
24th Sep 2013 16:10

Wow indeed!

Ding Dong wrote:

Kent accountant wrote:

Try £995 plus vat

Its run by a member on here, so no doubt he'll be along soon.

 

 

Wow indeed, and hopefully genuine! Will investigate further and hopefully the member concerned will post too.

I must say, no disrespect to IPs but £3,500 onwards seems extortionate, for such a small, simple company.

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By northernmonkey
24th Sep 2013 16:16

Hmm - maybe not

It seems they cannot deal with companies with assets other than cash. The shareholders really want to keep all the current shares, albeit in their names rather than companies. 

I wonder whether they would consider selling all the shares and then repurchasing in own names, once they have the cash? Then just broker fees to add in. (Shares all standing at a capital loss).

Anyone else had experience of one of these?

Thx

Thanks (0)
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By pembo
24th Sep 2013 16:27

wow wow

that is cheap. We have an arrangement with someone who does it for c£2k all in as long as its just cash.

Just a thought. I've had a couple of cash rich only cases like this since ESCC16 went and in each case the owners had no immediate need of the dosh as they had effectively retired. Their income profile was ideal so I suggested that we top it up by tax free dividends until we get down to the CGT exemption. In each case this meant about 5 years. So 5 more years accounts and fees for us and the saving for them was still substantial. Win win ! Know you have the share issue but thats easily dealt with. Worth asking the question ?

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Replying to Red Leader:
By northernmonkey
24th Sep 2013 16:59

Pembo

Yes, they've been doing that for  the past five or six years and the plan was always to keep doing so. But client fed up of admin burden, etc, and wife is ill so just want it all wound up! Plus very little dividends can be taken annually as both very near the HR limits so likely to take another ten years or so!

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Replying to Neil Armitage:
Red Leader
By Red Leader
24th Sep 2013 17:31

fee + expenses

I was told by an IP that the expenses can be significant, so ensure any quote includes both.

IP has to take out insurance for each assignment, I believe, which can be costly. Hopefully any IP reading this will confirm or contradict.

Thanks (1)
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By Manraj Mand
24th Sep 2013 16:57

Agree with Ding Dong.............

A fee of £3.5k would sound reasonable. It would require preparation of a deed of assignment in addition to usual procedural steps taken in an MVL. The tax treatment of the distribution from the personal perspective of the shareholder would depend on weather you could show the distribution of the assigned DLA and the cash was in fact a distribution of realised capital assets.

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Replying to Paulsoper:
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By Kay1970
28th Jan 2014 00:14

DLA
Can anyone tell me how the DLA due to director is distributed here ?

Thanks (0)
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By Maslins
24th Sep 2013 18:09

MVL Online

Hello - firstly, cards on the table, I (Chris Maslin) own 50% of MVL Online Ltd.

As you've seen, we do just get involved in cash only cases.  There are a few criteria that basically enable us to streamline the process hence offer it at this low cost.  It may be that in this specific instance the directors could buy the shares from the company like you suggest...but I appreciate this may not be feasible.

Our site also tries to make all the costs crystal clear...but as Red Leader suggests, be aware on top of our fee (£995) there is VAT, and also disbursements for statutory advertising (circa £280+VAT) and a bond to protect the clients funds (amount varies with net assets, but goes from £74 for a £25k case to £336 for a just sub £1m case).  Typically works out at £1,600-800 all in, inc the VAT.

Happy to answer any Qs re MVLO, either here or via PM.  I can confirm we are genuine(!) Reached the milestones of 100 completed cases and £10m cash paid out to shareholders a few months ago.

Thanks (1)
By LucasJohnson
25th Sep 2013 01:33

Not wholly unreasonable quotes, but

Hello there, being as honest as the last contributor, I am an IP too, but my business doesn't just deal with cash only cases, we deal with all and any structure/scenario of solvent reconstructions - from £30k cash only IT contractor distributions to solvent Charity wind downs to group rationalisations.  We do charge more than the £1,600-1,800 Maslins mentions for a scenario like you have outlined, but it is less than the other quotes you have received.

 

If your client is still in need of a more competitive and quick solution, please feel free to PM me.

 

Regards

 

Kevin Lucas

Thanks (1)
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By Jamie
12th Dec 2013 01:32

£2000+vat
www.parkerandrews.co.uk

Hi there all, we will deal with any type of MVL, cash or other assets. We would charge starting at usually £2000 plus vat. May be a bit late for this post but thought I would put it out there in case anyone else was searching the boards...

Cheers
Jamie Playford
[email protected]

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