Members Voluntary Liquidation (MVL)

Closing a solvent limited company or navigating life inside IR35 doesn’t have to be costly or complicated. We specialise in helping contractors and business owners extract their money in the most tax-efficient way possible.

A Members Voluntary Liquidation is a formal, structured process for winding up a solvent company. It’s the go-to solution when you want to close your business efficiently, unlock retained profits and benefit from favourable tax treatment.

Our Licensed Insolvency Practitioners give clear, expert advice on whether a Members Voluntary Liquidation (MVL) is right for you. And if it is, an MVL can reduce your tax bill significantly – often saving you thousands.

By using an MVL, and depending on your future plans, the funds distributed are typically taxed at lower rates – Capital Gains Tax rather than Income Tax.

If you qualify for Entrepreneur’s Relief (ER) you can benefit from a 14% marginal rate on distributions, which can result in considerable personal tax savings.

Whether you’re retiring, stepping away from contracting due to IR35 or simply ready to move on, an MVL ensures a clean, professional and tax-efficient exit.

When is an MVL appropriate?

IR35 contractor? Due to IR35 legislation the owner is no longer able to contract and operate a limited company (PSC).
The company has sufficient assets to repay all of its creditors, if any.
The owner wishes to retire.
The owner wishes to step down from a family business and nobody else wishes to take over.
The owner no longer wishes to run the business.
Shareholders wish to realise their interest in an owner managed business.

Read a MVL case study

See the latest news

Members Voluntary Liquidation (MVL) Guide

The MVL Process

Tax Advice

Director/shareholder seeks professional tax advice.
Determine whether a Members’ Voluntary Liquidation (MVL) is the most suitable option.
If the entity is a Personal Service Company (PSC), the contractor is typically both the director and shareholder.
Adviser confirms any tax benefits or implications of choosing MVL.

Formal Instruction

The company/PSC instructs Umbrella.UK to proceed with the MVL process.
Umbrella.UK arranges meetings necessary to place the company/PSC into MVL.
Umbrella.UK’s Insolvency Practitioner is formally appointed as liquidator.

MVL Approval

The MVL is officially approved by the company/PSC.
Umbrella.UK Insolvency begins liquidation actions, including:
- Collecting cash from the company/PSC business bank account.
- Paying off all creditors, including HMRC.
- Distributing surplus funds (after costs) to the shareholder/contractor.

Liquidation Management

Umbrella.UK, acting as liquidator, oversees the full MVL process.
Ensures all legal, financial, and administrative steps are completed.
Aims to make the MVL process as simple and efficient as possible for the client.

What our clients tell us

Tom Fox was incredibly helpful as I prepared to liquidate a couple of companies - clear advice, a respectful approach to both myself as director and the creditors, and a reasonable fee structure vs many of the national IP's I spoke to whilst researching who to work with.

Mike S

I engaged Umbrella accountants to oversee a Members Voluntary Liquidation for the small consultancy business I've been running. The team talked me through the MVL process, steps and requirements. The paperwork involved was well explained and straightforward, with the initial disbursement of funds handled very quickly and professionally under tight deadlines.

Brendan N

I extend my appreciation of your professional efficiency in handling my company business and herewith say thank you.

Maxine R

Umbrella.UK Insolvency guided me as sole Director of my small limited company, and the shareholders, through every step of a Members Voluntary Liquidation in a very efficient manner. The steps required were clearly laid out and proactively managed by their licensed practitioner. From first meeting through to an interim distribution of funds to shareholders took only a few days in our case. Thereafter, Umbrella will be managing all of the downstream actions required to complete the process with HMRC and Companies House, through to the final discharge of the company.

Alex O

I'd just like to thank Tom for your help with the closure of my company. You have been highly efficient and very professional throughout. Thank you.

Tony D

First of all, I would like to say a BIG Thank You for all of your assistance over the past year. I would not be in the positive state of recovery without Umbrella Insolvency. Your care and assistance at the application stage last summer, along with the advice throughout the year, has been great. I would not hesitate to tell anyone in my negative situation where to turn to.

Mr TM

Before I came to Umbrella.UK Insolvency I was in a bad place mentally due to debt because I believed I would be in my current situation for a long time to come. Umbrella.UK Insolvency walked me through my options and helped me pick the best one. I am genuinely amazed at what they managed to do for me and can now afford to live comfortably, and without the constant worry of debt looming over me.

I engaged Tom to arrange an IVA for me after I ran into financial difficulties as a result of the closure of my company. He introduced me to Sarah and both of them as a team worked tirelessly through Lockdown to get the best outcome for me and my family. Both Sarah and Tom were patient, thorough and incredibly compassionate for our situation. They attained the best outcome for us and I couldn't speak more highly of them. Thank you to you both, Amazing work.

Thank you very much for your assistance in a successful proposal. We are ever so grateful as this is a chance to transform our lives; or rather you have given us a second chance to have our lives in order. Thank you for your patience and perseverance throughout that you showed.

Thank you so much for your help with my IVA. As an ex-company Director my life took a downward spiral when creditors from my liquidated company called upon my personal guarantees. I had been treading water for months, ran up credit card debts and borrowed from family. When a creditor instigated bankruptcy proceedings against me I thought I was going to lose my house. I contacted Umbrella.UK Insolvency who stopped all the phone calls and threatening letters. Umbrella.UK Insolvency explained things in a way I could understand. They negotiated with creditors and my IVA went through, now I can sleep at night again and I kept my home. Thomas Fox was extremely knowledgeable and I truly thank him and his team.

Paul G

Following a personal recommendation, we appointed Umbrella.UK Insolvency to handle the voluntary liquidation of our business (MVL). Tom and his team were excellent, keeping us well informed throughout and working effectively with the company's accountants to ensure all documentation was produced and filed on time. I have since recommended Umbrella.UK to friends looking for similar services and I have no hesitation in recommending them more widely.

Kevin B

I engaged Umbrella .UK Insolvency to oversee a Members Voluntary Liquidation for the small consultancy business I've been running. The team talked me through the MVL process, steps and requirements. The paperwork involved was well explained and straightforward, with the initial disbursement of funds handled very quickly and professionally under tight deadlines.

Brendan N

Thank you to Tom Fox at Umbrella Insolvency for helping me close my limited company after being forced to close it due to IR35 issues. Tom clearly has a lot of experience doing MVLs to help limited contractors like myself caught by IR35. I was surprised by how much money I was actually left with. Very impressed, thank you!

David G

I had the pleasure of working with Umbrella.UK for an insolvency matter. Their compassionate approach, coupled with their expertise, helped me find the right solution for my company's financial difficulties. I highly recommend their services.

M Harris

Umbrella.UK's team of insolvency practitioners demonstrated exceptional knowledge and professionalism throughout our engagement. Their ability to provide clear solutions and communicate complex matters made the CVL insolvency process much more manageable.

Emma D

As a director facing company financial difficulties during covid, I was overwhelmed and unsure about the next steps. Umbrella.UK stepped in and guided me through the options for helping my business recover with patience and expertise. I cannot thank them enough for their exceptional service and my company is in a much healthier situation.

Mark T

I am extremely grateful to Umbrella.UK for their prompt and effective insolvency assistance. Their deep understanding of the insolvency process and dedication to helping struggling businesses saved us from a dire situation. Thank you!

S Johnson

Tom Fox at Umbrella.UK provided invaluable guidance and support during a challenging time for our business. Their team of experts helped us navigate through insolvency with professionalism and efficiency. Highly recommended.

John S

Members Voluntary Liquidation (MVL)

When is an MVL appropriate?

The MVL Process

Tax Advice

Formal Instruction

MVL Approval

Liquidation Management

What our clients tell us

Get free business closure, rescue or debt advice today*

Contact Us

Our Address

Office hours

Socials

Get a FREE business insolvency consultation today today.
All enquiries are strictly confidential.