The cost of our members voluntary liquidations vary depending on the structure of the company and how straightforward the case is. A members voluntary liquidation is a tax efficient way to close a solvent company and distribute funds to shareholders, but the exact costs depend on the level of work involved.

At Frost Group, we offer a clear fixed fee structure so you know what to expect from the outset. In this guide, we break down typical MVL fees, what affects the overall cost, and what is included in each service level.

What Affects the Cost of a Members’ Voluntary Liquidation?

The members voluntary liquidation cost will vary depending on the company’s affairs and how complex the liquidation process is. While some cases are straightforward, others require more detailed work, which can increase the overall cost.

Key factors include:

• The number of directors and shareholders involved
• The type and value of company assets
• Whether there are other liabilities to resolve
• The level of asset realisations required
• The overall structure of the business

If your company cannot pay its debts, a creditors voluntary liquidation (CVL) may be more appropriate. Because every company is different, the exact cost will vary depending on these factors. Speaking to an insolvency practitioner early can help you understand likely liquidation costs based on your situation.

MVL Cost Breakdown: Fixed Fee Service Levels

At Frost Group, we offer a fixed fee service with clear pricing based on the complexity of your company. This approach keeps MVL fees transparent and helps you choose the most suitable option for your situation.

Basic Bronze MVL – From £1,000 + VAT

This option is designed for a straightforward contractor company with a simple structure. It is suitable where there is a sole director and shareholder, the business has ceased trading, and the accounts are fully up to date.

To qualify, the company must:

• BE A  contractor company only
• Have cessation accounts completed and filed
• Have all corporation tax, VAT, and PAYE liabilities paid
• Be de-registered for VAT and the PAYE scheme
• Have no fixed assets on the balance sheet
• Have cash at bank only with a single company bank account

On appointment, funds are distributed using the distribution in specie process. This means company funds are transferred directly to the shareholder, without being held in a client account, giving immediate access to funds and added peace of mind.

Bronze MVL – From £1,250 + VAT

This is the most popular fixed fee option and is suitable for simple contractor companies with slightly more flexibility. It applies where there are up to two directors and shareholders, and the company has ceased trading with accounts finalised.

To qualify, the company must:

• Be a contractor company
• Have cessation accounts prepared and submitted
• Have all corporation tax, VAT, and PAYE liabilities paid
• Be de-registered for VAT and the PAYE scheme
• Have no fixed assets on the balance sheet
• Have cash at bank only, with up to two company bank accounts
• Have no Section 455 charges

This service offers a quick liquidation process, with access to company funds on day one and all paperwork handled for you.

Bronze Plus MVL – From £1,750 + VAT

The Bronze Plus service is designed for companies that require more flexibility in structure but are still relatively straightforward. It allows for a wider range of company setups compared to the standard Bronze option.

To qualify, the company must:

• Have cessation accounts completed and filed
• Have all corporation tax, VAT, and PAYE liabilities settled
• Be de-registered for VAT and the PAYE scheme
• Allow for other assets to be distributed in specie
• Have multiple company bank accounts if needed
• Not involve complex corporate structures
• Have no Section 455 charges

As with other entry-level services, funds can be distributed using the distribution in specie process on appointment, allowing shareholders to access funds immediately.

Silver MVL – From £3,000 + VAT

The Silver service is designed for more complex cases where additional support is needed. This is an advice-led option, often used where there are outstanding matters to resolve or the company’s affairs are not fully finalised.

It is suitable where:

• The company has a more complex structure
• There are other liabilities to deal with
• Cessation accounts have not yet been filed
• There are company assets and liabilities to finalise
• There may be Section 455 issues
• There are cash distributions or small property interests

This service involves working closely with your accountant to ensure everything is handled correctly, giving you confidence that any issues are addressed before the liquidation is completed.

Gold MVL – From £6,000 + VAT

The Gold service is a bespoke, advice-driven option for complex cases requiring a higher level of input. It is suitable for companies with more detailed structures or where a commercial approach is needed to manage the liquidation.

This includes:

• Companies with complex corporate structures
• Cases involving overseas entities
• Situations requiring restructuring or detailed planning
• Managing creditor claims and contingent liabilities

Frost Group will work with your professional advisors to ensure the process is handled efficiently, with a focus on achieving the best outcome for shareholders.

What Are MVL Disbursements?

Disbursements are separate from MVL fees and relate to third-party costs required to complete the liquidation process. These are charged at cost price, with no mark-up.

The main disbursements include:

• Statutory advertising in the The London Gazette
• Three statutory advertisements required as part of the process
• A statutory bond, which acts as an insurance policy to protect company funds

The cost of the statutory bond will vary depending on the value of assets held in the company. In many cases, particularly where funds are distributed using the distribution in specie process, a reduced rate may apply.

What Is Included in the MVL Fees?

The MVL fees cover the full management of the liquidation process by a licensed insolvency practitioner, ensuring all legal requirements are met.

This typically includes:

• Preparing the declaration of solvency
• Drafting all required documentation and meeting paperwork
• Filing documents with Companies House
• Communicating with HMRC regarding corporation tax, VAT, and PAYE
• Handling creditor claims and ensuring liabilities are addressed
• Preparing final accounts and completing the closure process

This ensures the company’s affairs are properly concluded before the company is dissolved.

How Quickly Can You Access Company Funds?

In many cases, shareholders can access company funds as soon as the liquidation process begins. Using the distribution in specie process, funds can be transferred directly from the company bank account to shareholders on the day the liquidator is appointed.

This means there is no need to move money into our client account, and you can access cash quickly without waiting for the full MVL process to complete.

Tax Efficiency and Shareholder Benefits

A members voluntary liquidation is a tax efficient way to extract funds from a solvent company. Instead of being treated as income, distributions are usually taxed as capital gains, which can result in lower tax liabilities. In some cases, a business restructure may be considered before moving to liquidation.

Shareholders may also be eligible for business asset disposal relief, which can reduce the rate of tax paid. This makes an MVL a cost effective option compared to taking funds as salary or dividends, depending on your individual circumstances.

Why Choose Frost Group for Your MVL?

Choosing the right support can make a big difference to the cost and outcome of your members voluntary liquidation. At Frost Group, our experienced team provides a clear fixed fee structure, practical advice, and full support throughout the liquidation process.

If you’re considering an MVL, get in touch or call 0345 260 0101 for free advice and a confidential chat. We support shareholders and directors across the UK and can help you understand your options, costs, and next steps.

Members’ Voluntary Liquidation Cost – Frequently Asked Questions

Below are answers to some of the most common questions about members voluntary liquidation cost, fees, and how the process works.

How much does an MVL cost?

The cost of a members voluntary liquidation will depend on the complexity of the company. Simpler cases can start from around £1,000 plus VAT, while more complex cases may cost more. The exact cost will vary depending on the company’s structure, assets, and liabilities.

What are MVL fees made up of?

MVL fees are made up of the liquidator’s fees for managing the process, along with disbursements such as statutory advertising and the statutory bond. These costs cover the work required to complete the liquidation properly.

Are there any hidden costs?

No, fees are typically transparent and explained upfront. Disbursements are charged separately at cost, meaning there are no hidden charges added during the process.

What is a declaration of solvency?

A declaration of solvency is a formal statement made by the company’s directors confirming that the company can pay all its debts in full. It is a legal requirement before entering a members voluntary liquidation.

Can I access funds before liquidation is complete?

Yes, in many cases funds can be accessed at the start of the liquidation using the distribution in specie process. This allows shareholders to receive funds without waiting for the full process to finish.

How are VAT refunds handled?

If the company has been VAT registered, it may be possible to recover VAT on certain costs during the liquidation. Any VAT refunds are processed during the liquidation and returned to shareholders where applicable.

How long does an MVL take?

The process can begin quickly, but the full liquidation usually takes several months to complete. This depends on finalising the company’s affairs and receiving the necessary clearances before the company is dissolved.

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