Contractor MVL Solution from SFP
Act Now Close Your Company Before the April DEADLINE
Lock in the 10% tax rate before it rises to 14% – register now and save thousands
- Beat the Deadline: Finalise your MVL before April and avoid the tax increase.
- Maximise Your Savings: Take full advantage of Business Asset Disposal Relief.
- Quick Access to Funds: Release up to 100% of your money within 7 days of appointment.
- Specialist Support: Trusted MVL experts for contractors.
You'll Pay 14% Tax Instead of 10% in:
Find Out How Much You Could Save
What is an MVL and Does Your Business Qualify?
If your company is solvent and has net assets over £25,000, a Members Voluntary Liquidation (MVL) is the most tax-efficient way to close it down. Thanks to Business Asset Disposal Relief, you could pay just 10% tax on distributed assets.
However, time is running out – this rate will rise to 14% on 6th April 2024, potentially costing you thousands. Act now to secure the savings before the tax increase.
What You Need to Close Your Company Before April:
- Stop Trading: Your company must have ceased trading before starting the MVL process.
- Prepare Final Accounts: Ask your accountant to have final accounts ready by early March.
- Settle Debts: Pay off all company debts, including taxes, before starting.
- Contact SFP Early: Start the MVL process now to meet the April deadline.
- Get Shareholder Approval: Shareholders must sign the necessary documents.
- Organise Paperwork: Gather ID and proof of solvency.
Don’t stress - SFP will work closely with you and your accountant to get your affairs in order. The sooner you engage with us, the sooner we can start preparing, so don’t wait until it’s too late.
See How Businesses Like Yours Benefited from Our MVL Service
Trust SFP to Close Your Solvent Company
SFP is one of the UK’s leading MVL providers, trusted by contractors and recommended by top contractor accountants nationwide.
Our award-winning team delivers a fast, efficient, and tax-saving process, giving you peace of mind every step of the way.
Learn more at sfp-mvl.co.uk or call 0203 800 0582 to speak with an expert today.
Trusted by Contractor Accountants Across The UK
Frequently Asked Questions
The 10% tax rate in an MVL relates to Business Asset Disposal Relief, which gives business owners a lower Capital Gains Tax rate on the funds they take out when closing a solvent company. This has been a significant benefit as rather than paying typical income tax rates, they pay just 10%. However, with the recent budget announcement, that rate will increase to 14% in April and again to 18% in 2026.
The timing of this is so important. It might feel like April is still far away, but a lot of work goes into completing an MVL. Business owners need to get their final accounts from their accountant and settle any outstanding tax liabilities with HMRC. From what I’m seeing, accountants will likely feel the pressure soon, with more clients looking to go down this route. So, it’s best to reach out to your accountant now to request those final accounts and confirm they can have them ready in time. Realistically, as your MVL provider, we’d need a copy of those accounts by early March to guarantee a distribution before April.
The biggest risk is getting those final accounts too late. Without them, we can’t start the MVL process, and any delay here could mean missing out on the 10% rate. If business owners wait until they have accounts in hand before reaching out, there might not be enough time left on our end. Even though we aim to distribute funds within seven days of appointment, things like reconciliation questions could hold up the process. It’s just easier to start sooner and avoid last-minute stress.
Since the budget announcement, I’ve been speaking with a lot of contractors and small business owners. Contractors especially have felt a push, as many were already considering closing their companies due to IR35 changes. Now, they’re more motivated to close rather than holding on. The small business owners I've spoken to who planned to retire in a year or two are also bringing those plans forward to benefit from the 10% rate.
Here’s an example to make it clearer. Suppose Mr. Jones has £50,000 in his company. He has two main options: he can either strike off his company or choose an MVL.
If he strikes off the company, he’d pay a 33.75% dividend tax, which would cost him £16,875 and leave him with about £33,125. With an MVL, using Business Asset Disposal Relief, he’d only pay 10% tax on the funds. After fees, his tax bill would be around £5,000, leaving him with £45,000, a difference of £11,875
The two main benefits of an MVL are:
- Tax Savings: Funds are taxed at only 10% after settling debts. Generally, the more assets in the company, the greater the savings with an MVL.
- Distribution: By signing a shareholder’s indemnity, we can typically release 100% of your net asset value within seven days of appointment, much faster than most.
If a shareholder has, say, £200,000 in assets, and they go through an MVL before April, they’d pay £20,000 in tax at the 10% rate. After April, with the rate rising to 14%, they’d pay £28,000 – an £8,000 difference. By anyone’s standards, that’s a great saving, and I’m sure most people would prefer to keep more of their hard-earned money.
That’s one reason why we’re expecting a high demand from clients wanting to get things done before April. Plus, at SFP Group, we distribute up to 100% of assets in the first payout, whereas some firms only offer 80-90%, making the savings even more worthwhile
Honestly, there’s no time like today! I’d recommend reaching out to your accountant now to make sure they can produce the final accounts in time. It’s also a good idea to set up an initial call with us to discuss the process and get things moving as soon as possible. Acting early gives everyone the best chance of meeting the deadline.
We understand that for many business owners, this is a different process with a lot of steps, so we’re here to guide you through each stage. We know how important it is for shareholders to take advantage of the current 10% Business Asset Disposal Relief rate before April. That’s why we aim to distribute up to 100% of the net assets within 7 days of appointment.
Another part of the process involves directors signing a declaration of solvency in front of a solicitor. We organise this over a Teams call for our clients and don’t charge for this service.
