In more detail
EFFECTS OF BUSINESS LIQUIDATION
Liquidation will stop a company from trading. It can be very useful if you want to stop trading losses mounting up and you want to make your employees redundant so that they can claim from the Government Redundancy Payments Service.
The other effects of liquidation are:
- No more need to prepare accounts.
- No need to do VAT returns, PAYE returns or tax returns.
- No need to file accounts at Companies House.
- The company bank account will be frozen.
- As directors you are free to go off and do something else.
- It brings a company to a formal and legal end.
- Creditors can no longer pursue you unless you have given personal guarantees.
It is an effective way of reducing stress and retiring.
