IP blocking Directors redundancy

Discussion in 'Insolvency' started by benjy365, Jun 20, 2020.

  1. benjy365

    benjy365 UKBF Newcomer Free Member

    22 0
    This is a frustrating one that I can't seem to get past.

    My business became insolvent over a year ago and we appointed a very well known large scale firm to be our insolvency practitioners, for a fee of £15k plus VAT.

    The process has been very slow but there is nothing really problematic and so I have moved on with my life. A short while after the process started I was made aware that I may be eligible for Directors Redundancy and after a quick google I ended up talking to a company who would do everything for me and I would be supposedly entitled to just over £4k after their fees.

    The problem has now come up that the person dealing with our insolvency at the IP's won't sign off the form thats needed to apply. He has said to me that he 'has never heard of such a thing' and basically implied that its wrong for me to claim this after my business went bust owing lots of money.

    Despite numerous chases I just cant get anywhere and time is ticking on, this wasn't made any easier by covid-19 as my contact there was furloughed for a while. This isn't the actual named IP on the case, its one of his staff, the actual named IP doesn't ever respond to emails from me and I just get directed to this staff member.

    Now if I had a massively overdrawn Directors loan account I could understand it but due to the fact that I pumped money into the business to try and keep it going my loan account is actually in credit by more than £20k.

    Is there anything I can do about this other than just keep complaining? These IP's have basically treated us like dirt since the very second we signed the paperwork after fawning all over us before that!
     
    Posted: Jun 20, 2020 By: benjy365 Member since: Dec 31, 2018
    #1
  2. Gavin Bates

    Gavin Bates UKBF Enthusiast Free Member

    668 136
    Hi

    I am a bit confused by the story and sorry that you found yourself in this position. So below are a few questions.

    First of all you didn’t need to employ a firm to help you claim. Any director who was also an employee can make a claim against the redundancy payments fund.

    how much did you pay yourself through PAYE?

    which form do you need signing?

    have you considered a complaint against the IP’s regulatory body. It may saying you are unhappy and unless you get clear answers to you questions you wil make a formal complaint.

    hope this helps.

    regards

    Gavin
     
    Posted: Jun 20, 2020 By: Gavin Bates Member since: May 9, 2016
    #2
  3. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,997 876
    Probably a sticking point for Directors redundancy claim -was there a contract of employment?
     
    Posted: Jun 20, 2020 By: UK Contractor Accountant Member since: Sep 18, 2013
    #3
  4. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,523 448
    Hi The IP has a duty to lodged the RP14 and RP14A with the Redundancy Payments Office to enable them to process all employee claims.

    Have the Liquidators decided that your claim is invalid? This is of course very different from saying they have never heard of the scheme...

    The scheme has been going for as long as I can remember so they should have heard of this - is this a trainee you are dealing with?

    You need to write a formal complaint and if unsatisfied make a complain here:

    https://www.gov.uk/complain-about-insolvency-practitioner

    If any further issues with your claim being accepted then I can recommend an agent who can assist with your claim.
     
    Posted: Jun 22, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #4