What Would I Get If I Closed My Business?

Closing a solvent business normally happens through a process called an MVL (members' voluntary liquidation). Before anything is paid out to you, every creditor has to be paid back in full, but the company's assets usually sell for only part of their value. You'd also have to keep trading through the closing period and pay off your staff. Enter your rough figures below to see what could be left for you. Everything updates as you type, and nothing you enter leaves this page.

1. What the business owns and owes

Use the figures from your latest balance sheet or management accounts. In a closure, assets other than cash usually sell for less than their book value; the % boxes show the typical recovery and can be changed.

Cash in the bank (£)All business bank and savings balances.

Money owed to you (debtors) (£)Unpaid customer invoices.

Collected %Debts get harder to chase once you close.

Stock (£)Value in your accounts.

Sale %What a quick sale fetches.

Plant and equipment (£)Machinery, tools, vehicles, IT, at book value.

Sale %Auction or forced-sale value.

Property (£, optional)Only if the company owns it.

Sale %After agent and legal costs and a quick-sale discount.

What the business owes (creditors, loans, tax due) (£)Suppliers, bank and director loans, finance agreements, and Corporation Tax, VAT and PAYE due to HMRC. These must be paid in full before anything comes to you.

2. Other closing costs

Lease and contract exit costs (£)Breaking a premises lease, vehicle leases, phone and software contracts. Liquidator fees, incl. VAT (£)Typically £3,000 to £7,500 plus VAT for a simple MVL, more for complex ones. Ask for a quote.

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3. Staff redundancy calculator

Closing means making every employee redundant. This estimates the statutory minimum only. Contracts or company policy may pay more.

Number of staffEmployees, not counting yourself as a director. Average length of service (years)Counts up to 20 years. Staff need 2 years' service to qualify. Total annual payroll (£)All staff gross pay for a year, before tax. Weekly pay per person is capped at £751 for redundancy. Average age of staffStatutory pay depends on age. Leave on 22 to 40 if unsure. Include notice payEach person is owed 1 week's notice per year of service (up to 12 weeks) at full pay, either worked or paid in lieu. On by default because it's a legal minimum on closure.

4. You and your tax

Number of shareholders Your ownership %Your share of what's paid out. What you paid for your shares (£)Usually tiny, e.g. £1 or £100. Business Asset Disposal Relief likely?Usually needs 5%+ ownership, being an employee or officer, for 2 years. Lifetime limit £1m. Your other income this tax year (£)Salary, dividends, pension, rent. Sets your tax band.

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