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Insolvency and Liquidation Advice for Accountants

Specialist Insolvency Practitioner support for accountants whose clients are facing financial difficulties or considering closing a company with a liquidation process.

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30+ Years
Experience
Specialist Support
for Accountants
5,555+ Liquidations
Completed

When might you need advice from an Insolvency Practitioner?

As an accountant, you may be one of the first people a Director speaks to when their company is facing financial pressure or they are considering closing a solvent company. When insolvency or company closure becomes a possibility, specialist advice from a licensed Insolvency Practitioner can help you and your client understand the available options.

An Insolvency Practitioner can review the company’s position, explain the next steps, and advise Directors on their legal responsibilities.

Working with a licensed Insolvency Practitioner ensures your client receives clear, professional advice while allowing you to continue supporting them throughout the process.

0161 907 4044

John Bell

Senior Partner | Licensed Insolvency Practitioner

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Signs your client may need insolvency advice

As an accountant, you are often well placed to recognise when a client’s company is experiencing financial difficulty. Early warning signs may indicate that your client needs specialist insolvency advice.

Common indicators include:

  • Persistent cash flow problems and difficulty paying suppliers on time
  • Unpaid tax liabilities, including VAT, PAYE or Corporation Tax arrears
  • Increasing creditor pressure, such as CCJs or threats of legal action
  • A company unable to pay its debts when they fall due
  • An insolvent balance sheet, where liabilities exceed assets.

When these warning signs appear, Directors need to understand their legal responsibilities. Seeking early advice from a licensed Insolvency Practitioner can help ensure the situation is handled correctly and that the most appropriate options are considered.

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Concerned your client may need insolvency advice?

We can help you assess the position, explain the options, and support your client with clear professional guidance.

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When your client may need advice on closing a solvent company

Some clients are not in financial difficulty and want to close their solvent company. This may be due to retirement, restructuring, stepping away from contracting, or simply no longer needing the company.

In these cases, a Members’ Voluntary Liquidation (MVL) may be the most suitable option. An MVL allows a solvent company to be formally closed and its remaining funds distributed to shareholders. 

One of the main benefits is that distributions may be treated as capital rather than income, which can be more tax-efficient for eligible shareholders.

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How we help

Clarke Bell provides expert advice for accountants whose clients are experiencing financial difficulties or planning to close a company.

Our licensed Insolvency Practitioners can review your client’s company position and explain the available options, so the Directors can make informed decisions. We regularly support accountants who need specialist guidance beyond standard accounting or tax advice.

Whether your client is facing creditor pressure or planning a structured company closure, we provide clear liquidation advice for you and your client.

CVL advice for accountants

Where a company cannot pay its debts, a Creditors’ Voluntary Liquidation (CVL) enables Directors to wind up the company in a structured and compliant manner.

Clarke Bell regularly provides CVL advice to accountants whose clients are facing serious cash flow problems, creditor pressure, or an insolvent balance sheet.

Our licensed Insolvency Practitioners guide Directors through the liquidation process while ensuring all legal obligations are met. With CVL fees starting from £1,995, we also provide clarity on costs from the outset, helping you give your client practical guidance with confidence.

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Director’s Loan Account advice for accountants

Questions around Overdrawn Director’s Loan Accounts (ODLAs) are often one of the biggest concerns for Directors considering liquidation. Accountants are frequently asked what happens next, whether the balance will need to be repaid, and how the position is dealt with in practice.

Where this issue arises, Clarke Bell can help explain the process clearly. This may involve establishing the balance, reviewing available financial information, and considering appropriate steps based on the circumstances of the case.

For a more detailed explanation, read our guide below.

Read: How to Handle Director’s Loans in a Liquidation

MVL advice for accountants

A Members’ Voluntary Liquidation (MVL) is used when a solvent company is being closed and has retained profits to distribute (typically more than £25,000 worth of company assets).

We provide MVL advice for accountants whose clients are retiring, restructuring, or closing a company that still holds significant assets or retained earnings.

An MVL can allow funds to be distributed to shareholders in a tax-efficient way, often with the support of the company’s accountant. Our MVL service starts from £1,245 + VAT + disbursements, making it a cost-effective option for solvent companies with retained profits or assets to distribute.

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How we work with you and your clients

When your client needs specialist insolvency or liquidation advice, you can introduce them to Clarke Bell with confidence. We’ll review the company’s position, explain the available options, and guide you and your client through the next steps. 

The typical process involves:

1

Step 1: Initial discussion

The Insolvency Practitioner speaks with the client and/or their accountant to review the company’s financial position and understand the issues affecting the business.

2

Step 2: Review of the company’s finances

Financial information is reviewed to assess the company’s situation. This may include debts, assets, retained profits, creditor pressure, and cash flow.

3

Step 3: Advice on the available options

The Directors and/or their accountant are advised on the most appropriate solutions. This may include restructuring options, a Creditors’ Voluntary Liquidation (CVL), a Members’ Voluntary Liquidation (MVL), or other insolvency procedures.

4

Step 4: Working alongside the accountant

Where appropriate, the accountant remains involved and may assist with financial records, final accounts, or tax matters during the process.

5

Step 5: Implementation of the solution

If a formal liquidation procedure is required, the Insolvency Practitioner manages the process and ensures all legal and regulatory obligations are met.

Need to discuss a client case?

Speak directly with a licensed Insolvency Practitioner for clear, confidential advice on the most appropriate next step.

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Why accountants work with Clarke Bell

When a client’s company faces financial difficulties or the Directors are looking to close it down in a tax efficient way, specialist advice from a licensed Insolvency Practitioner is often required to ensure the situation is handled correctly.

Clarke Bell has been helping company Directors and their accountants deal with corporate insolvency and company liquidation for over 30 years. Our experienced team provides clear advice and practical solutions, working alongside accountants to ensure clients receive the most appropriate outcome.

30+ years Experience

Licensed Insolvency Practitioners Regulated by the ICAEW

More than 5,555 Liquidations completed

Speak to an Insolvency Practitioner

Get clear advice on the most appropriate solution for your client, including CVL, MVL, and other insolvency options.

“Excellent service. The whole process from start to finish was handled very professionally and efficiently by our account manager. We were continuously and proactively updated on progress. The timescales were exactly as advised. Clarke Bell made a difficult situation as easy as possible, and I could not recommend them more highly.” – Leigh Veerman

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Toyah Poole

Licensed Insolvency Practitioner

FAQs about liquidation advice for accountants

If a company cannot pay its debts and has no realistic prospect of recovery, Directors may need to cease trading to avoid wrongful trading. Accountants often recommend seeking advice from a licensed Insolvency Practitioner to review the situation and determine the most appropriate course of action.

Common options include Creditors’ Voluntary Liquidation (CVL) for insolvent companies and Members’ Voluntary Liquidation (MVL) for solvent companies that are being closed. The most appropriate solution depends on the company’s financial position and the Directors’ objectives.

Yes. Accountants frequently introduce clients to licensed Insolvency Practitioners when specialist advice is required. The accountant can remain involved throughout the process while the Insolvency Practitioner manages the formal liquidation procedure.

Accountants often assist by preparing final accounts, updating VAT and payroll records, and providing financial information required for the liquidation process. They may also advise Directors on tax implications and reliefs (e.g. Business Asset Disposal Relief).

Yes. In many cases, accountants continue supporting their clients during the liquidation process. Where possible, accounting and tax work relating to the case can be referred back to the accountant.

Initial advice can usually be provided quickly once the company’s financial situation is reviewed. Early discussions with a licensed Insolvency Practitioner can help Directors understand their options and, where applicable, avoid the situation becoming more serious.

Further reading on insolvency and company liquidation

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Get expert liquidation advice for your clients

If one of your clients is experiencing financial difficulties or considering closing their solvent company, Clarke Bell can provide specialist advice to help you determine the most appropriate solution for them to take.

Our licensed Insolvency Practitioners work with accountants to review the company’s financial position, explain the available options, and ensure the situation is handled professionally and in full compliance with insolvency law.

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