Redundancy - National Insurance Fund

Crafty_Toots

Hi, I wonder if anyone can help me work this out.

I will be redundant effective Monday as that is the day when the company 'ceases trading'. It is a limited company.

I have received a letter advising that there will be no notice or redundancy pay forthcoming as they can't afford to pay it. Attached is a form to apply for funds from the National Insurance Fund.

As far as I can ascertain, I would be able to apply for funds if the company is either in:

administration
liquidation
receivership
voluntary arrangement with creditors


However, I don't believe any of these to be the case. Does this mean I can't claim??

Toots x

MsHoarder

Why is the company ceasing trading then? You should be high on the list of creditors as it is.

Crafty_Toots

Thanks for your response.

As I understand it, they have not been making a profit in this last tax year, have in fact made a loss. They have voluntarily decided to wind up the limited business and I believe that all suppliers etc have been paid in full, leaving a bank overdraft which as directors they will effectively be liable for. I'm not totally sure on the minute detail, but that's how I understand it. The company will cease trading as a limited company on Monday (their accountant has been in and paperwork has been signed etc). However, effective Tuesday, they will be essentially continuing their business, but as sole traders (don't shoot me if that's the wrong wording) under a different business name. I understand that they can do this as the company assets ie. goods stock etc transfers to the directors in lieu of a directors loan which was given to the limited company.

I am given to believe that other than the actual goods assets, which are transferred to the directors in repayment of their loan to the company, there are no further funds available, and that includes payment of tax bill. And as the company will cease to exist, I presume there would be no right of redress against the company, as if it doesn't exist, it can't be held to account.

Any thoughts? I'm not entirely sure about the term 'liquidation', so don't know if what they're doing would fall into this category.

Toots x