By Lauren Auburn
BRI Business Recovery & Insolvency
WHERE a company has distributable reserves of more than £25,000 after all liabilities and costs have been paid in full, a members’ voluntary liquidation (MVL) process (a solvent liquidation) is usually recommended as it is the most tax efficient way for shareholders to extract any remaining assets following the company ceasing to trade.
If you search online for ‘solvent liquidation’ the results that will come up will probably include reference to ‘low cost’ or ‘fixed fee’, some will also suggest that the costs to liquidate your company could be less than £1,000 plus VAT. Whilst some companies do honour the low fixed fee as quoted, we are now hearing stories of some firms that, once appointed, are requesting fee increases.
It is understandable for clients to shop around for the cheapest quote. After all, any costs incurred will ultimately reduce the final distribution to shareholders. However, clients should be aware that the low-cost budget option is very likely to put the onus on them to do most of work. Without proper advice and guidance, it is understandable that, when having to complete the necessary paperwork, sometimes mistakes and/or omissions are made resulting in the IP firm requesting a fee uplift. In some cases we are aware of, the additional fees that have been requested are significant.
At BRI, we pride ourselves on providing an excellent level of service and are transparent with our fee quotes. We always meet with our potential clients and we offer advice and guidance throughout the MVL process. You will meet and deal with a member of the BRI team instead of dealing with the matter remotely. After all, we think it is a good idea to meet with the firm that will take control of your future retirement fund.
If you are considering whether or not an MVL will be beneficial to you, contact any member of the BRI team on 01604 754352 for a free initial consultation.