Liquidation Pricing
Considering liquidation or company closure? We believe in complete transparency — here's what you need to know about costs.
Understanding Liquidation Costs
If your business is struggling financially, understanding the costs involved in different options is crucial. Your personal circumstances will also need to be considered before beginning any procedure.
The cost of liquidation varies from company to company — no two businesses are the same. That's why we provide a thorough assessment before quoting, ensuring you know exactly what to expect with no hidden surprises.
What Options Do You Have?
Depending on your situation, several procedures may be available to you:
Creditors' Voluntary Liquidation
For insolvent companies that cannot pay their debts
Members' Voluntary Liquidation
For solvent companies with assets to distribute
Company Voluntary Arrangement
Structured payment plans to repay debts over time
Administration
Business rescue and restructuring option
Pre-Pack Administration
Purchase assets through a new company
We also provide support with HMRC Arrears, Overdrawn Directors' Loan Accounts, and Bounce Back Loans & CBILs.
What Factors Impact the Cost?
The cost of liquidation depends on several factors specific to your company:
Company Size
The overall size and complexity of your business
Number of Creditors
How many creditors are owed money
Total Debt Amount
The total amount owed to creditors
Directors' Loan Accounts
Any overdrawn directors' loan accounts
Indicative Pricing
Creditors' Voluntary Liquidation
From £5,000 + VAT
+ VAT
- Straightforward liquidation
- Minimal creditors
- Additional legal costs may apply
Larger or more complex cases will cost more
Members' Voluntary Liquidation
Varies
Get a quote
- No outstanding debts
- Tax-efficient extraction
- Less work for IP = lower cost
Contact us for an accurate quote
Company Strike-Off
The cheapest way to close a company with no outstanding debts
£33
Companies House fee
Beware of Hidden Costs
When choosing an insolvency practitioner, make sure you speak to multiple firms. Whilst insolvency practitioners often offer the same outcome, the route to get there and the fees can vary significantly.
Before you appoint your insolvency practitioner, ensure you have all costs and details in writing. This helps reduce the risk of unexpected charges later on.
We speak to many directors who were promised a price for liquidation, only to find themselves being pursued for thousands more pounds when it's nearly complete. This often occurs because details such as overdrawn directors' loans were not properly assessed before appointment.
The Director First Difference
At Director First, we ensure that every aspect of your business has been carefully assessed before we begin the process. We check directors' loan accounts, potential issues, and anything that could affect the final cost — all upfront.
We are here to put the director first at every step. No hidden surprises. No nasty shocks later on.
What If I Can't Afford to Liquidate?
When you're already dealing with financial difficulties, worrying about how to pay for liquidation is completely understandable. The good news is there are several options you could consider:
Director Redundancy Pay
Many limited company directors are unaware they may be eligible for redundancy pay. The average claim is around £10,000 — more than enough to cover liquidation costs.
You'll need to assess whether you meet the criteria — we can help with this.
Sell Company Assets
Some directors sell company assets to raise funds for liquidation fees. This must be done correctly with independent valuations — otherwise you could be made personally liable.
Keep all paperwork — the insolvency practitioner will need to see evidence this was done properly.
Personal Funds
Using personal savings is an option, but be careful about timing. You don't want to be accused of preference payments.
Speak to us before making any payments to ensure it's done correctly.
What's the Cheapest Way to Close a Company?
If your limited company has no outstanding debts, you can use the strike-off method. Simply complete the DS01 form on the government website and apply to be struck off. The details will be advertised in the London Gazette, and provided there are no objections, your company can be closed and removed from the Companies House register for just £33.
However, if your company has debts, do not attempt to use the strike-off method. Your creditors will object, and you could end up facing a winding-up petition and compulsory liquidation — which is far worse than a creditors' voluntary liquidation.
The most common type of liquidation for insolvent companies is a creditors' voluntary liquidation (CVL). By entering a CVL, you're demonstrating responsible conduct as a director — something the insolvency practitioner will view positively.
Get an Accurate Quote
We're happy to offer advice regarding liquidation pricing. Get in touch for a no-obligation assessment and honest, upfront pricing with no hidden costs.
Frequently Asked Questions
Common questions about liquidation costs
How much does it cost to liquidate an insolvent company?
How much does it cost to liquidate a solvent company?
What's the cheapest way to close a company?
What if I can't afford to liquidate my company?
Why do some insolvency practitioners charge more than others?
Will I have to pay more if I have an overdrawn directors' loan account?
Get Transparent Pricing Today
No hidden costs. No nasty surprises. Just honest, upfront pricing after a thorough assessment of your situation.