It is possible to wind up your own company, and directors sometimes do so via Form DS01, which is sent to Companies House. The process is called voluntary dissolution and involves various steps, including repaying creditors, and requesting that the company name is removed from the official register at Companies House.
There are many factors that can render it inappropriate, however. The main issue is that it’s only suitable for solvent businesses, but even if your business is solvent, another method may be more appropriate.
This is called Members’ Voluntary Liquidation (MVL) – a tax‐efficient procedure that, if conditions are right, could significantly lower your tax liability.
Concerned about National Living Wage and NI increases?
With the rates of both National Living Wage and employer National Insurance Contributions increasing in recent years, this additional cost of employing staff has added more pressure onto already squeezed cash flows. If you are worried about the impact this is having on your company's finances, talk to the experts at UK Liquidators. As licensed insolvency practitioners we can explain your options and help you plot a way forward. Call today on 0808 253 9878.
Is Members’ Voluntary Liquidation better than winding up your own solvent company?
Voluntary dissolution is an inexpensive way to wind up your company, and costs only £10. If the company’s financial situation makes it unsuitable for dissolution, however, the cost to you can be far higher in other ways.
If the company has outstanding debts, there’s a considerable risk that creditors will object to the application for dissolution. Even if an application goes through, creditors can apply to have the company reinstated to the register at any future point.
This could trigger an investigation by the Insolvency Service into your actions, as voluntary dissolution, or strike‐off as it’s also known, is only available for companies with no debt. So what is the alternative route when you want to close down your own insolvent company?
Creditors’ Voluntary Liquidation (CVL)
Company directors have some control over the CVL process – you can choose your own liquidator, and also decide when to place your company into liquidation. Creditors’ Voluntary Liquidation ensures you fulfil your legal duties as the director of an insolvent company, which involve placing your creditors’ interests first.
Trying to wind up your own insolvent company via voluntary dissolution, on the other hand, suggests you’re attempting to avoid paying creditors. This could lead to serious repercussions, such as personal liability for the company’s debts.
When a company is insolvent it’s vital to seek professional assistance, and although CVL incurs professional fees, it helps you minimise the likelihood of misconduct or wrongful trading allegations.
Start your online liquidation today
If you have decided liquidation is the right option for your limited company, you can take the first step and begin the process online using our online portal. Starting the process is quick, simple, and can be done at a time that suits you. Your information will be submitted to your local UK Liquidators insolvency practitioner who will be with you every step of the way. Click here to start your company’s liquidation online.
Director redundancy isn’t available if you wind up your own company
Another key issue regarding winding up your own business via voluntary dissolution is that it prevents you from claiming director redundancy. Average claims for director redundancy currently stand at £9,000, so it’s important to take this into account.
Directors who have also worked as employee for their company may be eligible for a redundancy payout, but also statutory payments, such as arrears of salary and unpaid holiday pay.
UK Liquidators can put you in touch with a reliable claims management firm specialising in director redundancy, so you can establish your entitlement. Our partner‐led team has extensive experience of helping directors place their business into voluntary liquidation, and can provide further guidance based on your own situation.
If you’re considering how to wind up your own company, please get in touch with us to arrange a free, same‐day consultation. We can explain the procedures available, present your best options, and ensure you take the correct course of action.
Jonathan Munnery
Insolvency & Restructuring Expert | 20+ Years Insolvency Experience
Jonathan is a Partner at Real Business Rescue and member of both the Insolvency Practitioners Association (MIPA) and The Association of Business Recovery Professionals (MABRP). Jonathan has over 20 years’ experience guiding directors through CVL and MVL processes, helping them understand their options and navigate financial distress with clarity and compassion.
IPA Member MABRP Member IPA Regulated
“ Directors often wait too long before seeking advice. The earlier you call, the more options remain available to you — and the better the outcome for everyone involved. ”
Jonathan is a Partner at Real Business Rescue and member of both the Insolvency Practitioners Association (MIPA) and The Association of Business Recovery Professionals (MABRP). Jonathan has over 20 years’ experience guiding directors through CVL and MVL processes, helping them understand their options and navigate financial distress with clarity and compassion.
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