
ACCOTAX - Accountants & Tax Consultants
Welcome to ACCOTAX, a firm of Chartered Accountants in London. The firm was established in 2009 and has helped thousands of businesses and individuals...See More

ACCOTAX - Accountants & Tax Consultants
Welcome to ACCOTAX, a firm of Chartered Accountants in London. The firm was established in 2009 and has helped thousands of businesses and individuals...See More
Frequently asked questions
What is the difference between creditors voluntary liquidation (CVL) and members voluntary liquidation (MVL) in Caterham On The Hill?
A CVL is used when a company is insolvent and cannot pay its debts. It is initiated by directors and involves a licensed insolvency practitioner who sells assets and distributes proceeds to creditors. An MVL is for solvent companies where directors wish to close the business voluntarily, often for tax efficiency. In an MVL, shareholders approve the liquidation, and surplus funds are distributed to them after all debts are settled.
How much does company liquidation cost in Caterham On The Hill?
Costs vary depending on the complexity of the company's affairs, asset values, and the number of creditors. For a CVL, typical fees range from £3,000 to £6,000 plus VAT, often paid from company assets. An MVL may cost between £2,500 and £5,000. We provide a fixed-fee quote after a free initial consultation, ensuring no hidden charges.
Can I continue trading after starting liquidation proceedings?
Once a liquidation order is granted, directors cease to have control, and the liquidator takes over. Trading is generally not permitted except in limited circumstances, such as completing existing contracts to maximise asset value. Continuing to trade while insolvent without proper advice can lead to personal liability for wrongful trading.
What happens to employees when a company goes into liquidation in Caterham On The Hill?
Employees are made redundant immediately upon liquidation. The liquidator is responsible for ensuring they receive statutory redundancy pay, notice pay, and unpaid wages, which may be claimed from the National Insurance Fund if company funds are insufficient. The liquidator also assists with employee claims and provides necessary documentation for benefits.
Will I be personally liable for company debts after liquidation?
Generally, directors are not personally liable for company debts if they have acted within the law and not traded wrongfully. However, if you have given personal guarantees for loans or leases, creditors can pursue you for those amounts. Our advisors review your situation to identify any potential risks before proceeding.
How long does the liquidation process take in Caterham On The Hill?
A CVL typically takes 6 to 12 months to complete, depending on asset realisation and creditor claims. An MVL can be faster, often concluding within 3 to 6 months. The liquidator must file final accounts with Companies House, and the company is formally dissolved shortly after.
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