New to this - CVL? Other options?

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Zee92

Zee92

Free Member
Jan 9, 2026
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  • #1
    Hi

    I’ll keep it short and sweet. Company incorporated in 2017 as a sole IT contractor director.

    No debts / all accounts filed perfectly up to end of 2024.

    2025 has been a problem year and had inadvertently overdrawn DLA (paid too much dividends accidentally which I then changed to DLA). Circa £40k.

    Now a contract was extended then cancelled within a month (same client) unexpectedly so now having cash flow issues.

    So in summary:

    BBL around £15 left
    Corp tax 15k due (plus ~20k when 2025 is filed)
    One business car finance
    ~£40k DLA
    13k cash remains in business account

    What should I brace myself for if I do CVL - honestly the stress is making me want to do nothing and let it catch up with later in life..
     
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    ChrisCallaghan

    ChrisCallaghan

    Free Member
    • Business Listing
    Apr 10, 2018
    1,195
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    855
    Sheffield
  • #3
    Your company is essentially solvent I'm afraid!

    The cash plus the asset of the DLA = £53k, vs the total debts you've described of £50k (including 2025's CT). Were you to liquidate, the appointed insolvency practitioner would come to you to repay your overdrawn loan account, or at least expect you to make a decent settlement offer (based on your circumstances, e.g. homeowner, income etc).

    I would certainly consider contacting an IP to thoroughly discuss the full process of a CVL, with a focus on how your overdrawn DLA would be treated post CVL. If that is then not to your liking, negotiating ditectly with the BBL bank and HMRC directly would be the next best step.

    When considering approaching an IP for advice, I would always suggest looking at their reviews and checking that they are licensed.

    From this forum, you can't go wrong with @Lisa Thomas and/or @Elliot Green .

    Good luck!
     
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    Lisa Thomas

    Lisa Thomas

    Business Member
    Business Listing
    Apr 20, 2015
    5,440
    1
    1,441
    www.parkerandrews.co.uk
  • #4
    Happy to chat to you about the prospect of a liquidation. We will need to chat about what your ability is to repay some/all of the DLA.

    Feel free to dm me to book a free initial chat to explore options.
     
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    Lisa Thomas

    Lisa Thomas

    Business Member
    Business Listing
    Apr 20, 2015
    5,440
    1
    1,441
    www.parkerandrews.co.uk
  • #5
    ChrisCallaghan said:
    Your company is essentially solvent I'm afraid!

    The cash plus the asset of the DLA = £53k, vs the total debts you've described of £50k (including 2025's CT). Were you to liquidate, the appointed insolvency practitioner would come to you to repay your overdrawn loan account, or at least expect you to make a decent settlement offer (based on your circumstances, e.g. homeowner, income etc).

    I would certainly consider contacting an IP to thoroughly discuss the full process of a CVL, with a focus on how your overdrawn DLA would be treated post CVL. If that is then not to your liking, negotiating ditectly with the BBL bank and HMRC directly would be the next best step.

    When considering approaching an IP for advice, I would always suggest looking at their reviews and checking that they are licensed.

    From this forum, you can't go wrong with @Lisa Thomas and/or @Elliot Green .

    Good luck!
    Click to expand...
    Thanks Chris!
     
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