Closing company via MVL route, advice required on final accounts please

[ktsotr]

For quick context, I'm an IT contractor now working on inside IR35 contracts for last 5yrs with little chances of getting back to using my Ltd company again.

I have decided to close the company using MVL and claim BADR for the cash distribution. Worked as an accountant long time ago so have been doing my own accounts for the last 20yrs but of course never dealt with company windups.

I will be approaching an Insolvency practitioner for the MVL process...

So my questions regarding are:-

1) VAT - I'm still registered for VAT but my final return will result in a refund ( approx £300 which includes some MVL cost and other things).
(a) Do I wait till hmrc Refund VAT before preparing final account so no debtor account balance ? or that's ok
(b) Can I deregister VAT before hmrc issue the refund or I have to wait
2) Final Accounts - Do I have to prepare my final accounts (9 months) before approaching Insolvency practitioner or when he is about to start?

Thanks

 

[UK Contractor Accountant]

How much cash reserves?

 

[ktsotr]

How much cash reserves?

a bit over 100k

 

[UK Contractor Accountant]

I would do the final accounts before sending off for MVL.

VAT - get IP invoice upfront then do final VAT Return and de-register.

MVL Online do a good price for MVL's or some IP's here no doubt will give you a quote for winding up.

 

[Lisa Thomas]

Hi

1) VAT - I'm still registered for VAT but my final return will result in a refund ( approx £300 which includes some MVL cost and other things).
(a) Do I wait till hmrc Refund VAT before preparing final account so no debtor account balance ? or that's ok

No need to delay just for that - your chosen liquidator can arrange to collect the refund.

(b) Can I deregister VAT before hmrc issue the refund or I have to wait

Your chosen Liquidator will tell you how to handle the VAT.

2) Final Accounts - Do I have to prepare my final accounts (9 months) before approaching Insolvency practitioner or when he is about to start?

No, but best if they are drafted as you will need the figures for your Declaration of Solvency Form.

Again the liquidator can discuss this with you.

Happy to give you a quote. I'm around for most of today, but am then on holiday until Wednesday.

 

[ktsotr]

I would do the final accounts before sending off for MVL.

VAT - get IP invoice upfront then do final VAT Return and de-register.

MVL Online do a good price for MVL's or some IP's here no doubt will give you a quote for winding up.

Thanks, I sent a message to them a couple of days ago

 

[ktsotr]

Hi

1) VAT - I'm still registered for VAT but my final return will result in a refund ( approx £300 which includes some MVL cost and other things).
(a) Do I wait till hmrc Refund VAT before preparing final account so no debtor account balance ? or that's ok

No need to delay just for that - your chosen liquidator can arrange to collect the refund.

(b) Can I deregister VAT before hmrc issue the refund or I have to wait

Your chosen Liquidator will tell you how to handle the VAT.

2) Final Accounts - Do I have to prepare my final accounts (9 months) before approaching Insolvency practitioner or when he is about to start?

No, but best if they are drafted as you will need the figures for your Declaration of Solvency Form.

Again the liquidator can discuss this with you.

Happy to give you a quote. I'm around for most of today, but am then on holiday until Wednesday.

Thanks Lisa, I'll be in touch

 

[Elliot Green]

Better often to get all ducks in a row with submission of final returns and accounts before you MVL the company. HMRC no longer provides clearance so the IP has to satisfy themselves everything is in order.

 

[Gavin Bates]

Hi

I agree with Elliot better to prepare and submit final accounts to HMRC to the position is clear. No need to deregister for VAT as the IP can do that when appointed.

Hope this helps.

Happy to give you a quote if it helps.

Kind regards

Gavin