Closing Your Limited Company: DIY Strike‑Off or Formal Liquidation?

Thinking of shutting your limited company? This guide helps you weigh two routes—voluntary strike‑off versus liquidation. We’ll explain when each applies, exact costs involved (£150–£250 for a DS01-filled strike‑off, and £3k–£10k+ for liquidation), plus benefits, drawbacks, and risks. And of course, see how Helpbox can assist every step—just call us on 02392 388 003 or email help@helpboxuk.com.

Voluntary Strike-Off (Member-initiated Dissolution)

What is it?
A simple method to dissolve your company via form DS01, effective once Companies House accepts and publishes the notice.

Who it’s suitable for:

• Solvent companies with:
  • No outstanding debts
  • Ceased trading for at least 3 months
  • No ongoing contracts or legal issues

Process & Cost

• DS01 filing fee: £33 online, £44 by post
• Professional help: Typically £150–£250 to have an accountant prepare and file the DS01, complete final accounts, and tie up loose ends
• Total cost: Roughly £180–£300

Pros	Cons & Risks
Cheapest, simplest route	Must have no debts—if you strike off with liabilities, creditors (including HMRC) can restore the company and pursue you
No insolvency practitioner needed	Any remaining assets pass to the Crown
Quick: completed in a few months	Incorrect filing risks delays or legal issues

Liquidation (Formal Insolvency Process)

There are two main types depending on whether your company is solvent or insolvent.

a) Members’ Voluntary Liquidation (MVL) – for solvent companies

• A licensed insolvency practitioner (IP) manages the process
• Professional fees typically £2,000–£5,000 + VAT
• Ideal if your company has significant assets or cash to distribute
• May offer tax benefits, such as Business Asset Disposal Relief
• Safer than strike-off when assets are involved

b) Creditors’ Voluntary Liquidation (CVL) – for insolvent companies

• Director-initiated; IP takes control to sell assets and repay creditors
• Fees usually £3,000–£6,000 + VAT
• Directors may need to cover fees if company assets are insufficient

Compulsory Liquidation (Court-ordered)

• Forced by creditors (e.g. HMRC)
• Legal and IP fees typically exceed £3,000
• High risk of personal liability and director investigation

Pros	Cons & Risks
Fully compliant and structured	Costs more than a strike-off
MVL can be tax-efficient	Directors may face liability if process is mishandled
CVL protects directors if company is insolvent	Personal guarantees still enforceable

Comparison Table

Method	When	Accountant/ IP Cost	Total	Pros	Cons
Strike‑Off (DS01)	Solvent, ceased trading, no debts	£150–£250	~£180–£300	Cheapest, simple	Risk of restoration or assets lost
MVL	Solvent, assets to distribute	£2,000–£5,000 + VAT	£2,500–£6,000+	Tax-efficient, safe winding-up	More complex, higher cost
CVL	Insolvent, cannot pay debts	£3,000–£6,000 + VAT	£3,500–£6,500+	Proper closure, director protection	Liability for shortfalls
Compulsory Liquidation	Creditors petition company	~£2,500 legal + IP fees	£3,500–£8,000+	n/a (not a choice)	High costs, legal risks

Helpbox Can Steer You Safely

Whether you choose a quick strike‑off or a formal liquidation, Helpbox can support you:

• DS01 strike‑off: We’ll prepare the form and final accounts, avoiding mistakes—£150–£250
• Liquidations (MVL/CVL): We coordinate with a trusted insolvency practitioner, explain the process clearly, and support you throughout
• We ensure legal compliance, protect you from errors, and explain the tax side properly

What Next?

1. Call Helpbox on 02392 388 003 or email help@helpboxuk.com
2. We’ll assess your company’s position—solvent or insolvent, assets or debts
3. You choose your preferred route—we take care of the rest
4. You close your company correctly, avoiding unnecessary costs or risks

Closing your company can feel overwhelming—but it doesn’t have to be. Whether you’re debt-free and winding down, or facing tougher financial issues, Helpbox can guide you to the right solution with minimal fuss and full legal protection.

Talk to us today—on 02392 388 003 or help@helpboxuk.com—and let’s get your closure done the right way.