A Members’ Voluntary Liquidation (MVL) is one of the most efficient ways to close a solvent company. It can offer tax advantages, a clean legal exit and a structured process that protects both directors and shareholders.
Digital tools have definitely made MVLs faster and easier. But it isn’t an online-only process and there’s no ‘MVL online’ platform which can complete the process for you.
MVLs are formal legal procedures and liquidation regulations require a licensed insolvency practitioner to run all parts of the liquidation. There’s also a statutory declaration of solvency that must be sworn, reviewed and handled correctly before liquidation can begin.
What an MVL actually involves
An MVL is a formal process for cash-rich, solvent companies that want to close down in a tax-efficient way. It’s an option when the company can pay all debts in full within 12 months. Unlike a strike off, an MVL is designed specifically for companies with over £25,000 in retained profits to distribute.
One of the key legal requirements is the statutory declaration of solvency, where directors confirm the company’s financial position. It must be based on a full, documented inquiry into the company’s affairs and sworn before a solicitor or notary. This document underpins the entire MVL.
Once that’s in place, a licensed insolvency practitioner acts as liquidator, settles remaining liabilities, distributes funds to shareholders and files the required paperwork to close the company.
Because of the required legal steps, an MVL can’t be completed by a single online tool. But you can manage large parts of it digitally.
Important tax change: BADR rising to 18% from April 2026
The Business Asset Disposal Relief rate is set to increase from 14% to 18% for disposals made on or after 6 April 2026.
This shift reduces the tax efficiency of taking funds out through an MVL.
If you’re thinking about closing your company, timing matters. Acting before the change could mean a noticeably better outcome. A quick conversation with one of our qualified insolvency practitioners will confirm whether an MVL before the deadline is in your interests.
Which parts of an MVL can you complete online?
Most directors start the process digitally because it’s faster, confidential and avoids unnecessary meetings. You can:
- Share accounts, creditor schedules and bank information securely
- Upload identification documents and company records
- Review draft paperwork, including the declaration of solvency
- Arrange shareholder resolutions and book the swearing appointment
These tools make it easier to move quickly, especially if you want to exit without delay. Digital onboarding also helps your insolvency practitioner check solvency, confirm assets and prepare the paperwork that must follow strict statutory rules.
However, once you reach the point where the MVL is formally started, the legal process moves beyond what can be completed using automated tools.
Why an MVL cannot be fully completed online
Some websites imply that you can “complete an MVL online” or “close a solvent company instantly”. But there is no single online MVL tool that can run the entire process from start to finish. Digital platforms make parts of the process quicker. They don’t replace the legal steps or the need for a licensed insolvency practitioner.
That’s because once the MVL begins, the insolvency practitioner must take statutory control of the company. Their duties include:
- Settling outstanding liabilities
- Handling creditor notifications and queries
- Distributing funds to shareholders
- Dealing with Companies House and HMRC
- Closing the company in line with insolvency legislation
Directors should be cautious of services offering shortcuts, particularly if they downplay the legal requirements. Mistakes can lead to:
- An MVL being converted into a CVL
- Delays in distributions
- Challenges from creditors
- Personal consequences if the declaration was not properly prepared
A reputable practitioner will always explain how the process works and why certain steps cannot be bypassed.
Key takeaways
- You can start an MVL online but it can’t be completed by an ‘MVL online’ tool
- The declaration of solvency must be sworn with a solicitor and the process must be run by a licensed insolvency practitioner
- Digital tools streamline the early steps
- MVLs still follow strict legal requirements, including the declaration, distributions and final filings
- Online MVLs are hybrid services, mixing digital convenience with formal oversight
- The right practitioner keeps the process quick and smooth, often getting solvent companies through the early stages within days
Get advice on Members’ Voluntary Liquidation
If you’re ready to close your solvent company and want a fast, compliant Members’ Voluntary Liquidation, our licensed insolvency practitioners can guide you through the process.
An MVL can be the most tax-efficient way to close your company but only when the legal steps are handled correctly. A short conversation will confirm whether your company meets the solvency requirements, how quickly the declaration can be sworn and what the distribution timeline will look like.
We’ll guide you through every stage, prepare the declaration, handle the formalities and take care of the regulated work behind the scenes. Most directors are surprised by how quickly a well-organised MVL can move once the paperwork is in place.
If you want clarity, certainty and a smooth exit, get in touch for free, confidential advice on starting your MVL.
