Moving ForwardHow BABR moved a successful
entrepreneur into a full time role
Moving ForwardHow BABR moved a successful entrepreneur into a full time role
Company Size: 10 employees
The Company was incorporated in 2020 by a young entrepreneur to sell children’s sportswear online. He was very successful but wanted to wind up the Company to move on to full-time role that he had lined up.
He was referred to BABR by his accountant and following an initial consultation with one of our experts we established that he had no intention of starting up again which meant that there was no danger of breaching the Targeted Anti Avoidance Rules and that a Members’ Voluntary Liquidation (MVL) would be very tax efficient, utilising Business Asset Disposal Relief (BADR) to distribute surplus funds once all liabilities had been repaid.
A strategy was agreed for the MVL, and we worked closely with the accountant and director on this. Once all returns had been filed, liabilities paid and the remaining asset was cash at bank we prepared a Declaration of Solvency, directors’ minutes, shareholder resolutions and an indemnity for signing and the Company was placed into liquidation.
Within 6 weeks of the liquidation, once the creditors claim period had expired, we made an initial distribution of over £500,000 to the shareholders and then once we received tax clearances and the go-ahead to close the Company from HMRC a final distribution was made, and a final report submitted to Companies House to trigger the dissolution of the Company.
The whole process took 7 months from the initial chats and quotation to finalising the case.
“Embarking on a quest for funding amidst turbulent cashflow woes, we found our guiding light in Steve Broom, Head of Commercial Finance at BABR. His pragmatic, accessible approach transformed a seemingly complex journey into a clear and decisive one. Steve’s unwavering support, devoid of jargon, made the process not only manageable but empowering. Our collaboration culminated in a confident decision that steered us towards a brighter future. Steve’s warmth and expertise cast a reassuring glow throughout our partnership.”
Intricately weaving a tapestry of financial revival, BABR’s partnership with the client serves as a testament to the potent impact of tailored financial solutions.
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