Closing down & dormancy
Strike off is an administrative dissolution for small solvent companies. Liquidation is a formal process run by an insolvency practitioner.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityStrike off is a simple administrative dissolution costing a small filing fee, suitable where reserves are under £25,000 and the company is solvent. Liquidation is a formal process run by a licensed insolvency practitioner, required when insolvent and preferable for large reserves.
Cost and process
Tax is usually the deciding factor
Strike off is a simple administrative dissolution costing a small filing fee, suitable where reserves are under £25,000 and the company is solvent. Liquidation is a formal process run by a licensed insolvency practitioner, required when insolvent and preferable for large reserves.
Strike off: file DS01, notify members, creditors and other interested parties, wait two months after the Gazette notice, and the company is dissolved. Cost is the filing fee plus final accounts work.
MVL: appoint a liquidator, swear a declaration of solvency, distribute assets and close, over roughly three to six months, at a cost commonly between £2,000 and £5,000 plus disbursements.
Under strike off, capital treatment applies only to distributions up to £25,000 in total. Exceed that and everything is taxed as a dividend at up to 39.35%. Under an MVL, distributions are capital, taxed at 18% or 24%, or 14% where Business Asset Disposal Relief applies.
With £100,000 of reserves the difference easily exceeds the liquidator's fee, which is why an MVL is standard above roughly £30,000 to £40,000 of reserves. Targeted anti-avoidance rules can convert an MVL distribution into income if you carry on a similar trade within two years.
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
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We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
Yes. Any creditor, including HMRC, can object and suspend the application.
No. Debts do not disappear, and directors who allowed a strike off to avoid creditors risk restoration and personal consequences.
Strike off, typically around three months, against three to six months for an MVL.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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