
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 a Creditors' Voluntary Liquidation (CVL) and a Members' Voluntary Liquidation (MVL)?
A CVL is used for insolvent companies that cannot pay their debts, where directors initiate the process to avoid wrongful trading and ensure creditors are treated fairly. An MVL is for solvent companies that wish to close voluntarily, often for tax efficiency or retirement, requiring a declaration of solvency. Our Farnham liquidators can advise which route applies to your situation.
How much does a company liquidation cost in Farnham, Surrey?
The cost varies based on the complexity of the company's affairs, asset value, and creditor structure. For a standard CVL, fees typically range from £3,000 to £6,000 plus VAT, but we offer fixed-fee arrangements after a free initial review. MVL costs are often lower, starting around £1,500. Always request a detailed quote to avoid hidden charges.
Can I continue trading while my company is being liquidated?
No, once a liquidation order is made (CVL or MVL), directors' powers cease, and the liquidator takes control of the company's assets. However, before the formal appointment, you may continue trading if it is in the best interests of creditors, but we recommend seeking immediate advice to avoid personal liability for wrongful trading.
What happens to employees if my company goes into liquidation?
Employees are automatically made redundant upon liquidation. The liquidator will assist in claiming statutory redundancy pay, unpaid wages, holiday pay, and pension contributions from the National Insurance Fund. We guide you through the process and ensure all employee claims are properly submitted.
Are directors personally liable for company debts in a liquidation?
Generally, no, as limited liability protects directors. However, personal liability can arise if there is evidence of fraudulent trading, wrongful trading, or if personal guarantees were given. Our liquidators will investigate and advise on any potential risks, helping you mitigate exposure where possible.
How long does a company liquidation take in Farnham?
A CVL typically takes 6 to 12 months to complete, depending on asset realisation and creditor claims. An MVL can be faster, often 3 to 6 months. The process concludes with the company being dissolved and struck off the Companies House register.
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