• Low-Cost Liquidation
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  • Stop HMRC & Creditor Pressure

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Scotland Liquidators Cumbernauld

If you are a company director based in Cumbernauld who is considering the future of their limited company, Scotland Liquidators’ team of licensed insolvency practitioners are here to help you navigate the process. With over 35 years’ experience working across Cumbernauld, we have provided trustworthy and actionable help and advice to thousands of directors of both solvent and insolvent companies.

If you are looking to close your limited company, the first step is to understand whether it is solvent or insolvent. If your company is struggling to keep up with its monthly obligations to trade creditors, HMRC, and other lenders, and you believe its liabilities are greater in value than its assets, there is a good chance the company is technically insolvent.

If this is the case, swift action must be taken to protect your personal exposure as the company’s director, and also the position of outstanding creditors. It is vital you do not engage in any activity which could worsen the position of creditors or cause them to suffer any further losses. The best way of doing this is to seek the services of a licensed insolvency practitioner as soon as you becoming aware the company is insolvent, or is likely to soon become insolvent.

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Creditor’s Voluntary Liquidation in Cumbernauld

Voluntarily placing the insolvent company into a liquidation process (CVL) can often give creditors the best chance possible of recovering some of the money they are owed, while also ensuring the affairs of the business are wound down in an orderly and compliant manner.

A different type of voluntary liquidation known as a Members’ Voluntary Liquidation (MVL) can be appropriate for solvent companies with a significant amount of cash or other assets to extract. Proceeds distributed from a company being closed through an MVL will be classed as capital gains rather than income and will therefore be subject to Capital Gains Tax. If you qualify, your tax liability can be reduced even further by taking advantage of Business Asset Disposal Relief (BADR).

For an assessment of your company closure and liquidation options, contact our team working across Cumbernauld for a free no-obligation consultation with a licensed insolvency practitioner.

Closing a Scottish limited company with HMRC debts

If your limited company is no longer financially viable and you have tax debts you cannot pay, closing it down can be an effective way to escape the financial pressure so you can move on to something new.

As soon as you become aware your company is insolvent, you should cease trading and seek professional advice from an Insolvency Practitioner. Your legal duties as a director now switch from promoting the success of the company to acting in the best interests of your creditors (parties you owe money to). By ceasing trading, it prevents the company from building up further debts it cannot pay that you could be made personally liable for.

Once you have ceased trading, you can voluntarily enter the company into a formal insolvency procedure called a Creditors’ Voluntary Liquidation (CVL). You must appoint an Insolvency Practitioner (IP) to act as the liquidator. They will take control of the company, invite claims from your creditors and sell off the company’s assets to raise money to repay HMRC and any other creditors.

The liquidator will repay your creditors in a strict order. As long as you have acted according to the insolvency rules, any debts the company cannot pay in full, including the company’s tax debts, will be written off. You’ll only have personal liability issues if you have signed a personal guarantee to secure company borrowing.

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Why you need to act quickly with HMRC debts

Owing money to HMRC is not unusual. Most businesses in financial distress will have some form of tax debt. As the most common creditor in the UK, HMRC has strong powers of debt enforcement and will act quickly to recover its money and prevent you from accruing further tax liabilities you cannot pay.

It might be possible to negotiate a Time to Pay arrangement with HMRC, which will give you more time to pay what you owe. However, if your business is no longer financially viable, it’s in everyone’s best interests to close it down.

If you do not enter the company into liquidation voluntarily, HMRC can issue a Winding Up Petition to force the business into Compulsory Liquidation. As part of the process, the liquidator will investigate the reasons for the insolvency and the directors’ actions. That increases the likelihood that you will receive a penalty, such as being made personally liable for company debts or being handed a directorship ban.

Can I dissolve a company with tax debts in Scotland?

You might have heard of Company Dissolution or Strike Off as a way of closing your company. However, only solvent businesses can use this process. To dissolve your company, you would have to contact HMRC to settle your tax debts and repay all your other creditors in full. Only then could you apply to Companies House to strike your business off the official register.

If you try to dissolve a company without paying your tax debts, HMRC will formally object to your application. You could also face serious reprisals from the Insolvency Service, as it will be noted that you tried to use the strike-off process to avoid paying your debts.

Take our 60 Second Test to understand your options

There are three main ways to close a company in Scotland. Taking our 60 Second Test will help our advisers identify the correct route forward for you and your company.

While all three closure options have their advantages and disadvantages, the right one for you will depend on a number of factors including the current financial position of the company and your plans for the future.


Why close a company with HMRC debts via a Creditors’ Voluntary Liquidation?

If you want to close your limited company and have tax debts you cannot pay, you have two options. You can:

  • put the company into liquidation voluntarily via a Creditors’ Voluntary Liquidation (CVL); or
  • wait for HMRC or another creditor to force you into Compulsory Liquidation.

There are several benefits associated with taking control of the situation by initiating a CVL:

  • You can decide when you enter liquidation and appoint your choice of liquidator.
  • The liquidator will still scrutinise your conduct, but there’s less risk that director misconduct allegations will be made against you.
  • If you have worked as an employee of the company for a minimum of 16 hours a week for at least two years, you could be eligible for company director redundancy pay.

If you’re unsure of your next steps or want to know more about how to close a limited company with HMRC debts, please contact the team at Scotland Liquidators. We offer free same-day consultations and provide expert guidance and support throughout the process.

Supporting 25,000+ Limited Company Directors

I knew I needed to close my company but I wasn’t sure how to go about this with large debts that I was unable to repay. Scotland Liquidators clearly explained my options and held my hand throughout the entire process.

Catherine Muller | Director

I would highly recommend Scotland Liquidators to anyone considering closing their business. From the first phone call I knew where I stood and what my options were. I cannot thank them enough.

Jonathan Booth | Director

Scotland Liquidators helped me close my company last year after I made the tough decision to stop trading. My advisor was patient, knowledgeable, and supportive from start to finish. Many thanks.

Colin Franklin | Former CEO

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Contact the Scotland Liquidators Team

There are several options when it comes to closing a limited company and it is vitally important you choose the one which is right for you, your company, and your creditors. Whether you are struggling with rising costs, falling trade, or impatient creditors, we are here to help.

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