Having to consider putting your company into Creditors’ Voluntary Liquidation (or CVL) is not something any Director sets out to have to do…
Key Business Information
- Turnover £250,000
- Trading for approximately 10 years
- Corporation Tax & VAT Arrears
- Director was the only employee
How We Helped
This company had been working as a contractor on Government projects for some years and had enjoyed a steady income stream. Unfortunately, as a result of Government cutbacks, the company’s contract was scaled back and its income dropped significantly.
Having always had a very steady income, the company had not made provision for its Corporation Tax or VAT as it had always paid these from ongoing income. This left the company with liabilities to HMRC that it could not afford to pay.
You can find out more anout the voluntary liquidation process here and about redundancy for employees or directors here
With its reduced income and mounting liabilities, the director decided that the company could not continue and as such wanted to close the company and look for a job elsewhere.
We guided the director through the liquidation process ensuring that the company could be closed as quickly and cleanly as possible thus releasing the director from the stress he was under so that he could focus on finding a job. As the director had worked full time at the company, he was also successful in securing payments in respect of redundancy, pay in lieu of notice, wage arrears and holiday pay from the Redundancy Payments Service.
