Last Updated: 13/10/2025
In short
Usually a creditor like HM Revenue & Customs will petition to wind the company up and it will then be put into liquidation. The are still alternatives though so please get in touch with one of our experts on 0800 331 7417.
In more detail
There are three main choices to close down an insolvency company:
- You pay for a liquidation. You will need a Licensed Insolvency Practitioner like us to do this.
- You wait for someone else to issue a winding up petition although you may have to wait three to six months for this. The most common creditor to wind up a company is HMRC.
- You use form DS01 available from Companies House. It is not actually a liquidation but a good cheap way to strike off a company. IT only costs £8 to do it online but you have to be careful through and follow the rules on the form.
So why do directors pay for a company to be liquidated?
- It's quicker
- It gets creditors offer your back as they have to deal with the liquidator
- It is the best way to deal with any assets lefts
- It helps employees make their redundancy claims quickly from the government
- It stops the need to file accounts, VAT and PAYE information
If you need insolvency advice contact us early to talk through your options on 0800 331 7417 or complete the form below.
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If your company is struggling with unmanageable debts, decreased cashflow or concerns about about your company’s future, we can assess your situation and provide you with tailored solutions and options.
During your free initial advice meeting, we will discover a true picture of your company’s financial situation
and offer practical and expert guidance on your next steps.
Initial meetings can be held at our office or your premises and are completely confidential.
There is no charge for this meeting – charges only apply if and when terms of engagement have been agreed.
