Guidance

Members’ Voluntary Liquidation (MVL) and Notices of Intended Dividends (NOIDs) — insolvency practitioner bulletin 8 (2025)

Published 20 August 2025

Since the end of Members’ Voluntary Liquidation (MVL) clearance, there has been an increase in Notices of Intended Dividends (NOIDs) submitted by insolvency practitioners (IPs), under Rule 14.29(1)(b) Insolvency (England and Wales) Rules 2016 (IR16).

This has created operational challenges for HMRC.

Operational challenges for HMRC

High volumes

There has been a significant increase in NOIDs since the end of MVL clearance.

Early submission

There are some IPs issuing NOIDs immediately upon appointment, even when pre-appointment tax returns are outstanding. Also, some NOIDs are being issued before the Gazette or Companies House have been notified of the appointment.

Inappropriate use of NOIDs

There are some IPs using NOIDs before creditors have had the opportunity to submit claims, which is not their intended purpose.

Bulk submissions

Submitting NOIDs for multiple companies on a single document creates:

• scanning issues
• data security concerns
• processing challenges

Engaging effectively with HMRC

We want to help IPs engage effectively with HMRC.

We have set out our views on how NOIDs can be used efficiently, so that MVLs are concluded within the statutory 12 month timeframe:

• before entering MVL, enquiries should be made to establish the company’s current tax position by engaging with the company’s directors and either the current or previous agent

• about 3 months after appointment, HMRC will write to IPs to notify them of any outstanding pre-appointment returns

• if an IP has not been notified of outstanding pre-appointment returns by 4 months after appointment, they should contact the MVL Team using the contact details on VAT Notice 700/56. On that basis, our view is that the immediate issuing of a NOID on appointment in an MVL is inconsistent with Rule 14.29(1)(a) IR16 because creditors have not had the opportunity to submit a proof of debt until a reasonable time has passed from the appointment

• Rule 14.39(a) IR16 makes it clear that in an administration or winding up, in the calculation and distribution of a dividend, the office-holder must make provision for any debts which are the subject of claims which have not yet been determined. If returns have not been submitted then the IP would need to retain sufficient funds to meet HMRC’s debt. Once established, HMRC would not expect to receive a NOID in cases where outstanding returns have not been submitted. HMRC will wait for outstanding returns to be submitted before submitting a proof of debt and will not respond to NOIDs in cases where we have provided confirmation that returns remain outstanding

• Rule 14.29 IR16 provides IPs should issue a NOID to MVL creditors who have not proved. HMRC would not expect IPs to incur unnecessary expense in issuing NOIDs to creditors who have already proved

• where a NOID to HMRC is necessary because IPs have not received a proof of debt, submit the NOID to the contact details on the VAT Notice 700/56 using an individual notice, not through listing many companies in one document. Consolidated submissions delay processing and may raise data protection concerns

• before finalising the MVL, a liquidator should satisfy themselves that all outstanding tax returns have been submitted and that all debts have been paid in full, together with any interest — outstanding returns should not be submitted by email to the MVL Team

This guidance is intended to support proportionate and appropriate use of NOIDs ensuring that MVLs progress efficiently and in line with legislative requirements. By reducing unnecessary or premature NOID submissions, IPs can help reduce delays and resource pressures, while continuing to fulfil their statutory duties.

HMRC will take appropriate action and report any conduct issues to insolvency regulators if we believe an IP is repeatedly submitting unnecessary NOIDs in a manner that is not their intended legislative purpose.