
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 Members' Voluntary Liquidation (MVL) and a Creditors' Voluntary Liquidation (CVL) in Shrewsbury?
An MVL is used for solvent companies where directors can formally declare solvency, allowing assets to be distributed to shareholders in a tax-efficient manner, often using Business Asset Disposal Relief. A CVL is for insolvent companies that cannot pay their debts. In a CVL, a licensed liquidator is appointed to sell assets and distribute funds to creditors, while investigating the directors' conduct. Our Shrewsbury liquidators can help you determine which process applies to your situation.
How much does company liquidation cost in Shrewsbury, Shropshire?
Liquidation costs vary depending on the complexity of the company, its asset base, and the number of creditors. For a straightforward Creditors' Voluntary Liquidation (CVL), fees typically range from £3,000 to £6,000 plus VAT and disbursements, but we provide fixed-fee quotes after an initial review. Members' Voluntary Liquidation (MVL) costs are often similar. We offer transparent pricing with no hidden charges, and we can discuss payment options, including spreading costs over time.
Can I continue trading if my company is insolvent in Shrewsbury?
If your company is insolvent, continuing to trade can expose directors to personal liability for wrongful trading. However, if there is a genuine prospect of rescue (e.g., through a Company Voluntary Arrangement or new investment), you may continue under strict conditions. Our Shrewsbury liquidators can advise on the legality of continued trading, help you seek professional advice, and if necessary, assist in placing the company into CVL to protect creditors' interests and your own position.
What happens to employees when a company goes into liquidation in Shrewsbury?
When a company enters liquidation, employees are automatically dismissed from the date of the winding-up order. The liquidator is responsible for ensuring employees receive their statutory redundancy pay, unpaid wages, holiday pay, and notice pay. These claims are preferential and may be paid from the National Insurance Fund (via the Redundancy Payments Service) if company assets are insufficient. Our liquidators will guide you through employee communication and claims processes to ensure compliance with employment law.
Will I lose my personal assets if my Shrewsbury company is liquidated?
If you have not given personal guarantees for business loans or leases, your personal assets (such as your home) are generally protected in a limited company liquidation. However, if you have signed personal guarantees, creditors can pursue you for those debts. Additionally, if you have taken director's loans or engaged in fraudulent or wrongful trading, you could face personal liability. Our Shrewsbury liquidators will review your financial history to identify any risks and advise on how to mitigate them.
How long does the liquidation process take in Shrewsbury?
The length of time depends on the type of liquidation and the complexity of the company's affairs. A Creditors' Voluntary Liquidation (CVL) typically completes within 6 to 12 months, though the liquidator's final report may be delayed if there are complex asset realisations or investigations. A Members' Voluntary Liquidation (MVL) can often be concluded in 6 to 9 months. Our Shrewsbury team works efficiently to close your company as quickly as possible while ensuring all legal requirements are met.
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