Company Closure

When it comes to closing down your limited company, you will discover various options are available to you. The right approach to take depends on several factors, primarily its financial position at the time of company closure. It’s essential to understand the difference between a solvent company and an insolvent one.

An insolvent company is unable to pay its debts as and when they fall due or its debts exceed its assets, indicating technical insolvency. To safeguard the interests of creditors, an insolvent company must be closed and wound down.

This process can either be voluntary, i.e. initiated by the company’s directors and shareholders, known as a CVL, or can start when a creditor finally loses patience in recovering monies owed to them and issues proceedings at Court against the insolvent company, referred to as Compulsory Liquidation.

On the other hand, a solvent company is capable of paying its bills and expenses promptly, with assets higher than its debts and therefore there will be surplus funds to return to its shareholders. Using an MVL procedure could be the most tax-efficient way for the shareholders to extract funds owed to them from the company.

Choose Umbrella.UK Insolvency to handle your limited company closure and benefit from our expertise.

Why choose Umbrella.UK Insolvency?

Umbrella.UK Insolvency Company Rescue Recovery and Closure Advice for business owners.

FREE, no obligation, non-judgmental and professional advice within 24 hours.

We will help you move forward with an insolvency solution that is best for you.*

Director led involvement so you will benefit from a high level of expertise every step of the way.

Overseeing Umbrella.UK Insolvency, Tom Fox has more than 20 years of experience in personal and corporate insolvency practice. He is a member of the Insolvency Practitioners Association (IPA) and Association of Business Recovery Professionals (R3).

100% confidential and dependable.

Get honest advice you can trust. We prioritise clear, honest communication without blinding you with technical jargon.

Nationwide Service.

Our friendly team offers nationwide accessible advice and support by phone, in-person or online.

We can take your stress and worries away.

With a broad range of skills and experiences, your insolvency solution is in good hands with Umbrella.UK Insolvency.

Find out more about the options for closing your company

CVL - Insolvent

If the company is experiencing financial difficulty and there is no prospect of continuing to trade then you should consider using a Creditors Voluntary Liquidation (CVL) procedure to close the insolvent limited company.

DISCOVER MORE

MVL - Solvent

If you are planning to close your solvent limited company then, depending on how much cash is left, using a Members Voluntary Liquidation (MVL) could be the most tax-efficient way and save you thousands of £££s.

DISCOVER MORE

Visit our advice hub for free director resources you can trust

Read case studies

Take a look at our case studies to explain how the different business closure options can work.

Get our free guides

Get free expert advice and guides for directors in our advice hub.

Read the latest articles

Get the latest business and insolvency related articles for directors.

If you are unsure what situation your business is in, don’t worry! Call our confidential expert advisers on 0800 611 8888

Request FREE company closure advice today

Call 0800 611 8888 now or request a callback below *. All enquiries are strictly confidential. Click here to see our privacy notice.

Company closure. *We don’t charge for an initial consultation, but it may lead to an insolvency solution where our pre-appointment costs are reimbursed as part of the fee structure that creditors approve.

What our clients say

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.

MT,

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.

DH,
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.

NP,
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 c...

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,