Cheque in business name but no business account to pay it into

Blondetotty

Hi All


Wonder if anyone can help.


My partner wound his business up at the start of the year. No creditors, sold off the remaining stock, accountant sent final accounts in and he then received a refund for something from HMRC, closed his bank accounts and all done and dusted.


He's just realised he had a refund due from a cancelled trade motor policy which has finally turned up but made out to the company rather than him as a Director. He's argued with the broker but they won't budge. The insurance company paid the broker for the time off cover and the broker has now paid him but in the ex companies name. He doesn't have a business account any longer and although he's said just write it off and call it experience, to me nearly £400 isn't pocket change and I'm trying to figure out if anything can be done.


Anyone got any suggestions? The broker is absolutely adamant they won't re-issue the cheque in his name even though they know the company has been wound up.

System

Strictly speaking the money belongs to HM Treasury as the entity (LTD company) no longer exists.

glider3560

Blondetotty wrote: »

made out to the company rather than him as a Director. He's argued with the broker but they won't budge.

A director is simply an employee of a company who is responsible for running it. They have no right to receive any payments that are due to the company.

Since it was the Ltd company that contracted the broker, the broker is 100% correct in only paying money to the limited company. The company really shouldn't have been dissolved until all payments were settled.

Any assets owned by the company (including payments due) are owned by Bona Vacantia (i.e. the state).

In some cases you can restore a dissolved company to the register, but it isn't cheap: https://www.gov.uk/restore-dissolved-company

J_B

Blondetotty wrote: »

Anyone got any suggestions? The broker is absolutely adamant they won't re-issue the cheque in his name even though they know the company has been wound up.

Are you friends with the bank manager?

18cc

Since presumably the company name is now available unless it has been taken by somebody else you could reopen it as a new company . It would have the same name but a different company number to the original

you will then have to open a new bank account in the company's name and pay the cheque into that

Blondetotty

J_B wrote: »

Are you friends with the bank manager?

Haha. I wish!


Okay, I'm guessing we'll chalk it up to experience and let the money stay with the broker if we can't cash the cheque. No idea whether they have to hand it over to the crown or if it'll just disappear into their accounts somewhere. He's retired now so I very much doubt he will be bothered about dealing with the aggro of trying to open and then close a new business account just for £400 so hey ho, never mind. It just frustrates me that he was a one man band small business, closed it all down correctly, paid all his taxes and finalised the accounts and just forgot this one dammed policy might be due a refund which he now can't get. Live and learn though.


Thanks for the advise all.

glider3560

Blondetotty wrote: »

It just frustrates me that he was a one man band small business, closed it all down correctly, paid all his taxes and finalised the accounts and just forgot this one dammed policy might be due a refund which he now can't get. Live and learn though.

But that's the issue. It wasn't his taxes, it was the company's taxes. He could've kept the company running for some time in case any payments were made, or could pay £100 to reinstate the company to the register.