
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 compulsory liquidation?
A Creditors' Voluntary Liquidation (CVL) is a voluntary process initiated by the directors when the company is insolvent. The directors pass a resolution to wind up the company, and a licensed insolvency practitioner is appointed as liquidator. Compulsory liquidation is a court-ordered process, typically started by a creditor who petitions the court to wind up the company. In a CVL, directors retain more control over the process and can choose the liquidator, whereas in compulsory liquidation, the court appoints the Official Receiver initially.
How much does company liquidation cost in Teddington?
The cost of liquidation varies depending on the complexity of the company's affairs, the number of assets and creditors, and the chosen liquidation route. For a straightforward Creditors' Voluntary Liquidation, fees typically range from £4,000 to £8,000 plus VAT and disbursements. We provide a fixed-fee quotation after a free initial assessment, with no hidden costs. Our fees are often paid from the company's assets, and in some cases, directors may fund the process personally if assets are insufficient.
Can I continue trading after my company enters liquidation?
No, once a company enters liquidation, the liquidator takes control of the business, and trading must cease immediately unless the liquidator decides to continue trading temporarily to achieve a better return for creditors. As a director, you lose your powers to manage the company's affairs. However, if you wish to continue trading, we can explore alternatives to liquidation, such as a Company Voluntary Arrangement (CVA) or administration, which may allow the business to continue operating.
What are the responsibilities of directors during a liquidation process?
Directors have a legal duty to cooperate fully with the liquidator. This includes providing all company records, financial statements, and any information requested. You must also attend meetings with the liquidator and assist in the investigation of the company's affairs. Directors must not conceal assets or prefer certain creditors. If you have acted in good faith and complied with your duties, there is usually no personal liability. However, wrongful trading or fraudulent activity can lead to personal claims against you.
How long does the liquidation process take in Teddington?
The duration of a liquidation depends on the complexity of the case. A straightforward Creditors' Voluntary Liquidation can often be completed within 6 to 12 months, including the final distribution to creditors. However, if there are complex asset realisations, legal disputes, or investigations into director conduct, the process can take longer. We aim to expedite matters where possible, but we must follow statutory requirements and ensure a fair outcome for all parties involved.
Will I be personally liable for company debts after liquidation?
In most cases, directors are not personally liable for company debts, as the company is a separate legal entity. Once liquidation is complete, outstanding debts are written off. However, personal liability can arise if you have given personal guarantees for loans or credit, or if you have engaged in wrongful trading, fraudulent trading, or misappropriation of company funds. Our team will review your situation and advise you on any potential risks before you proceed.
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