Tax advice

[mini me]

Hi I am looking for some advice from those in the know regarding an issue I am having with corporation tax which I have overpaid. It’s a long story but I will try and keep it short. A couple of years ago now I was working as a contractor under an umbrella company. Due to the new IR35 laws introduced I was advised by my accountants, who shall remain nameless, that I needed to start a limited company and I would need to be the director. All was very bad as the company I used were very good at umbrellas but it seems pretty damn useless at dealing with the new company things. I was never paid on time or the right amount, money went missing etc etc. I was then offered a permanent job with the company I now work for so I jumped at the chance and advised my accounting company to wind up the business for me. This has taken approx 2 yrs and endless amounts of pain with them making mistakes all the way. I had a telephone conversation with them towards the end whereby I was trying to find out how much corporation tax I needed to pay as the deadline was looming. They gave me a figure which seemed to be plucked from the air and then a week or so later sent me an email with a completely different amount. Another phone call and I was told this was because the accounts were still not finalised and I should pay this large amount and then I would receive any overpayments back from HMRC if there were any. I filled in the form given to me which also contained details of where to send any monies if overpayments occurred. On this part I put my personal details as I didn’t want it to go to the company as the company was being closed down.

Deep breath

This was a long time ago now and I heard nothing until Sept this year when I received a cheque for approx £1200 overpayment from HMRC but the cheque was made out to the company not me. The cheque was dated some time in June (im at work so don’t have exact dates here) but was sent to my accountants address not mine. Low and behold they appear to have sat on it for three months before sending it on to me with a letter dated, I believe, the 30th Sept.

I sent the cheque back to HMRC stating that the company was dissolved and I needed the cheque sent to me personally after ringing up the office (HMRC) and being told this is what I needed to do. I have heard nothing since until today.

Today I have a phone call from my wife saying that a letter has come through which says that as the company was dissolved on 22nd Sept all assets go to the crown including of course my overpaid tax. Bona Vacantia? I have looked it up but the website is just confusing to me and I have little time at work so I was wondering if anyone here has had similar issues and what I can, if anything, do to try and recoup my loss. Do I have a case to claim from HMRC/ my accountant company? Anything really.

Appreciate you reading all this, if you have and would appreciate any help/ advice anyone can give. I am really loathed to give the tax man my hard earned due to someone else's uselessness.

So the question:

What would you do now?


Apologies if i have put this post in the wrong place but i dont know if its business/ finance or employment. Thought i may get a bit more exposure in here

[dirty boy]

Write to HMR&C as a director of the company. Detail that the company had met all of it's corporation tax obligations and was then dissolved, and could they re-issue the cheque in the name of the director.

[mini me]

Yes thats what i did when i recieved the cheque from them. The letter which has come back today is in response to that and states that as the company was disolved in September all assets (including the overpayment of tax) belongs to the crown.

[dirty boy]

mini me said:

Yes thats what i did when i recieved the cheque from them. The letter which has come back today is in response to that and states that as the company was disolved in September all assets (including the overpayment of tax) belongs to the crown.

Sorry, was trying to respond quickly, now it's cost me more time! I'm assuming it's something to do with the excess time that's passed, as that process has worked previously.

Do you a) still have the cheque and b) have a very friendly bank manager

Being serious, there is certainly the possibility of a claim to your accountants. How you go about this I don't really know. I would possibly arrange a meeting with them, explain your situation and ask what they intend to do. Tell them you will be seeking legal advice.

[mini me]

No worries i know it was a long and boring post thanks for replying. I sent the cheque back to HMRC with the letter as that is what they told em to do when i rang. Otherwise i would be furiously changing the name on it/ or my name to that of the company..... damn why didnt i think of that!

I think your right i will have to speak to the accountants unfortunately they are not local at all and previous experience of them leads em to the conclusion that ringing them wont help at all. i guess thats the first job though.

I effin hate taxmen!

no offence to anyone on here who might be... actually no, offence is intended!

Grrr

[mini me]

Bump for info.

Just got home and the letter sent from my accountants was dated 9th Sept. i was actually away then so couldnt have done anything about it. Dont know if i have a leg to stand on now though.