HSBC: Refund being paid to the Crown

[BV222]

I've received a letter from HSBC stating they're issuing a refund for just over £1000 due to an issue with a product a company I ran had with them. However, I dissolved the company in 2017 so the money is being paid to the Crown. According to the gov.uk website, I have 3 options to claim the money:
Get a court order to restore the company
Buy/refer a dissolved company's asset
Apply for a discretionary grant

Can anyone advise on the simplest and/or most cost effective option? That is, of course, if it's even worthwhile or feasible.

Many thanks

 

[Lisa Thomas]

Not worth it.

 

[BV222]

Not worth it.

Would you mind elaborating a little? I currently know very little about each option. But from what I can see via the gov.uk site, at a reasonably quick glance, restoring the company requires a £280 court fee + ~£300 registrar fee. A discretionary grant, £300 legal costs. I'm not too sure what's involved in buying a dissolved company's asset. Are there many more hoops to jump through in each case? Are any of these options viable in the circumstances? Thanks

 

[Scalloway]

a refund for just over £1000

restoring the company requires a £280 court fee + ~£300 registrar fee. A discretionary grant, £300 legal costs.

What value do you place on your time?

Will the time spent cost you income?

How high are you prepared to let legal costs rise before you give up?

 

[Lisa Thomas]

I believe Company tax returns will be required for the period since the last returns to date (can someone else confirm or deny please?),

Presumably you are planning on taking the funds out as a dividend? You will have to declare the income on your personal tax return and deal with any personal tax liability.

 

[BV222]

I believe Company tax returns will be required for the period since the last returns to date (can someone else confirm or deny please?),

Presumably you are planning on taking the funds out as a dividend? You will have to declare the income on your personal tax return and deal with any personal tax liability.

Aside from the personal tax liability, this only relates to the first option (restoring the company). Which I am also unlikely to do. Are you able to comment on a discretionary grant or buying a company's asset? Thanks

 

[BV222]

According to the gov site, a discretionary grant requires an application form to be sent, along with £300 legal costs. What else this option may entail, I am unsure.

I haven't fathomed the extent of what exactly is involved in buying/referring a company's asset.

It could very well be that it is not in my best interests to pursue any of these options. I am not disputing that. I was just looking for some further insight.

Thanks

 

[Lisa Thomas]

I'm not sure what you mean about buying an asset. Do you mean where a physical asset (other than cash) has automatically vested in Bona Vacantia where you would make them an offer to buy it?

If this is what it means, I can't see how that would apply to cash.

 

[thevaliant]

Lisa is right.
It simply isn't worth it.
If you employ a solicitor to restore the company, they will cost you more in fees.
If you DIY it, as you have discovered, the chances of foul up are high; and there are still some fees to pay.

I've only occassionally skirted around restoration processes, but for £1k it's simply not worth the time and cost.

 

[BV222]

I'm not sure what you mean about buying an asset. Do you mean where a physical asset (other than cash) has automatically vested in Bona Vacantia where you would make them an offer to buy it?

If this is what it means, I can't see how that would apply to cash.

From the HSBC letter:
What you need to do
If you would like to claim the money we're paying to the Crown, you can find guidance regarding how money can be claimed from the relevant authority on the government website:
gov*uk/claiming-money-or-property-from-dissolved-company

Here you are presented with the 3 options I've mentioned.

As you and others have said, it may not be worth it. The letter implies it's feasible, so I thought I'd at least try and explore the possibility. If it were a case of filling in a form or two and perhaps even paying a few hundred quid in fees then it might be worth a small amount of time. But I cannot fathom from the gov site just how straight forward it may or may not be. I'm obviously under the impression there's a reasonable chance it may not be.

 

[nelioneil]

From the HSBC letter:
What you need to do
If you would like to claim the money we're paying to the Crown, you can find guidance regarding how money can be claimed from the relevant authority on the government website:
gov*uk/claiming-money-or-property-from-dissolved-company

Here you are presented with the 3 options I've mentioned.

As you and others have said, it may not be worth it. The letter implies it's feasible, so I thought I'd at least try and explore the possibility. If it were a case of filling in a form or two and perhaps even paying a few hundred quid in fees then it might be worth a small amount of time. But I cannot fathom from the gov site just how straight forward it may or may not be. I'm obviously under the impression there's a reasonable chance it may not be.

It seems like you are still determined to even consider this despite the advice you are given here. Its just not worth it.

 

[BV222]

It seems like you are still determined to even consider this despite the advice you are given here. Its just not worth it.

That is not necessarily the case. As I've said, I imagine there's a reasonable chance it's not worth pursuing. But I'm also not entirely convinced anyone who has replied to this thread is completely aware of the options.

 

[BV222]

The only option anyone has addressed with any confidence relates to restoring the company. I agree, this does not appear to be particularly viable.

However, there are two other options presented via the gov site. Which, could very well entail similar scenarios. But, as of this moment, I do not know much about either.

 

[Scalloway]

The other two options you give are

Buy/refer a dissolved company's asset
Apply for a discretionary grant

Buy/refer a dissolved company's asset- what asset are you wanting to buy? If you want to buy the cash due you will have to pay the going rate for it. based on what you say say I would would offer £1,000 for the money due to be repaid.

Apply for a discretionary grant- the process is here.

https://www.gov.uk/guidance/apply-f...ere-the-dissolved-company-can-be-restored-cb2

The form asks for the bank balance at date of dissolution. As the money you expect to receive was not in the bank at dissolution the Goverment Legal Department will be within their rights to refuse repaymentas payment is discretionary.

 

[BV222]

The option infers to buy or refer. In this case to the Treasury Solicitor. Again, I don't know what this means or entails.

 

[BV222]

Whilst this forum can be helpful, I also dread coming on here. You almost always have to navigate ignorance, cynicism and general toxicity. I can only assume this is due to an unwavering need for attention for some. As why else would they bother to engage in other's concerns when they appear to have so little time and so much contempt for those they're assuming to be of value to.

I'm an honest person and clearly do not know much about this subject. Cash is an asset. I am not anticipating buying the cash back.

 

[Ian J]

Whilst this forum can be helpful, I also dread coming on here. You almost always have to navigate ignorance, cynicism and general toxicity.

I must be missing something as I can't see anyone being cynical or toxic.

I must admit that I am surprised that no-one has been cynical enough to ask you how much you owed HMRC or what your overdrawn and undeclared directors loan position was when you dissolved your company

 

[Scalloway]

The option infers to buy or refer. In this case to the Treasury Solicitor. Again, I don't know what this means or entails.

The Treasury Solicitors contact details are:

Treasury Solicitor’s Office
[email protected]
Telephone: 0207 210 4700
Fax: 0207 210 3104

I imagine if you got in touch by phone or email somebody would be sble to help you.

 

[japancool]

The Crown needs the money. Prince Andrew has some legal expenses coming up.

 

[Michael Loveridge]

To all those who have said it's not worth it I'm afraid they have simply made assumptions without having looked into the legal position, and they're wrong.

It is emphatically not worth going down the restoration route, as to do so would cost more than the amount at stake. However, this is precisely why the discretionary grant system was introduced.

If the amount at stake is less than £3,000 you can apply for the grant simply by filling in a form and sending ID evidence to the Government Legal Department.

There's an admin fee of £300, and they also take 5% of any balance over £750, but if the sum at stake is only £1,000 you should end up with £700, which is well worth the few minutes it will take to fill in the form. You don't even have to post the completed form, as it can be sent by email.

There's a guide here as to the procedure - https://www.gov.uk/guidance/apply-f...ere-the-dissolved-company-can-be-restored-cb2

 

[BV222]

To all those who have said it's not worth it I'm afraid they have simply made assumptions without having looked into the legal position, and they're wrong.

It is emphatically not worth going down the restoration route, as to do so would cost more than the amount at stake. However, this is precisely why the discretionary grant system was introduced.

If the amount at stake is less than £3,000 you can apply for the grant simply by filling in a form and sending ID evidence to the Government Legal Department.

There's an admin fee of £300, and they also take 5% of any balance over £750, but if the sum at stake is only £1,000 you should end up with £700, which is well worth the few minutes it will take to fill in the form. You don't even have to post the completed form, as it can be sent by email.

There's a guide here as to the procedure -

Thank you. I have seen this information on the gov site. I agree that restoring the company is not worthwhile. I am naturally sceptical of the other available options but I will look into this a little more.