Not been paid since November 2023, employer just become insolvent

danny_c

Hello

I've been working for the same company since July 2015. At the end of 2023, the company account was frozen by HMRC, and they petitioned for winding up. The company applied for a CVA, and was given a number of extensions by HMRC, but they ran out of patience in April, and the company was wound up at the end of April.

I have continued to work for the company throughout, as we were promised our owed money. I'm still under contract, have not been made redundant (the company has very, very little money and no assets), have not been fired, have not quit and not resigned.

That said, thankfully, I start a new job next week.

What should I be doing to attempt to get my unpaid wages back? I haven't been contacted by the insolvency practitioner, or anyone else. What can I expect to get back, if anything. I don't want to screw the boss, as - believe it or not - we're still kinda friends.

Any advice would be very much appreciated.

Thanks

born_again

danny_c said:

Hello

I've been working for the same company since July 2015. At the end of 2023, the company account was frozen by HMRC, and they petitioned for winding up. The company applied for a CVA, and was given a number of extensions by HMRC, but they ran out of patience in April, and the company was wound up at the end of April.

I have continued to work for the company throughout, as we were promised our owed money. I'm still under contract, have not been made redundant (the company has very, very little money and no assets), have not been fired, have not quit and not resigned.

That said, thankfully, I start a new job next week.

What should I be doing to attempt to get my unpaid wages back? I haven't been contacted by the insolvency practitioner, or anyone else. What can I expect to get back, if anything. I don't want to screw the boss, as - believe it or not - we're still kinda friends.

Any advice would be very much appreciated.

Thanks

Well that is exactly what they have done to you.
Worst case you end up as a creditor & get, well you can guess how much, as taxman gets theirs 1st.

MeteredOut

Not a lot you can do - put your claim in with the liquidators, but if you get a penny in the pound of missing wages you'll be lucky. HMRC are preferred creditors and will get their money first.

Look to claim some missing wages via the government service

https://www.gov.uk/your-rights-if-your-employer-is-insolvent/what-you-can-get

Limit is 8 weeks and capped at £643/week.

Were you/should have you been getting pension payments during that time? You might also be able to claim any missing pensions payments.

JCS1

MeteredOut said:

Not a lot you can do - put your claim in with the liquidators, but if you get a penny in the pound of missing wages you'll be lucky. HMRC are preferred creditors and will get their money first.

Look to claim some missing wages via the government service

https://www.gov.uk/your-rights-if-your-employer-is-insolvent/what-you-can-get

Limit is 8 weeks and capped at £643/week.

We you/should have you been getting pension payments during that time? You might also be able to claim any missing pensions payments.

HMRC have not had preferential status since the Enterprise Act over 20 years ago

Marcon

JCS1 said:

MeteredOut said:

Not a lot you can do - put your claim in with the liquidators, but if you get a penny in the pound of missing wages you'll be lucky. HMRC are preferred creditors and will get their money first.

Look to claim some missing wages via the government service

https://www.gov.uk/your-rights-if-your-employer-is-insolvent/what-you-can-get

Limit is 8 weeks and capped at £643/week.

We you/should have you been getting pension payments during that time? You might also be able to claim any missing pensions payments.

HMRC have not had preferential status since the Enterprise Act over 20 years ago

HMRC has regained its status as preferential creditor in insolvent liquidations, having previously been downgraded to unsecured creditor status by the Enterprise Act, 2002.

https://www.gov.uk/government/publications/hmrc-as-a-preferential-creditor/hmrc-as-a-preferential-creditor

DullGreyGuy

JCS1 said:

MeteredOut said:

Not a lot you can do - put your claim in with the liquidators, but if you get a penny in the pound of missing wages you'll be lucky. HMRC are preferred creditors and will get their money first.

Look to claim some missing wages via the government service

https://www.gov.uk/your-rights-if-your-employer-is-insolvent/what-you-can-get

Limit is 8 weeks and capped at £643/week.

We you/should have you been getting pension payments during that time? You might also be able to claim any missing pensions payments.

HMRC have not had preferential status since the Enterprise Act over 20 years ago

Changed again in 2020 @jcs1 such that taxes collected from customers (eg VAT) and employees (eg income tax) are preferred status as it was never the company's money. For other taxes, eg corporation tax, they are not preferential 

General_Grant

danny_c said:

Hello

I've been working for the same company since July 2015. At the end of 2023, the company account was frozen by HMRC, and they petitioned for winding up. The company applied for a CVA, and was given a number of extensions by HMRC, but they ran out of patience in April, and the company was wound up at the end of April.

I have continued to work for the company throughout, as we were promised our owed money. I'm still under contract, have not been made redundant (the company has very, very little money and no assets), have not been fired, have not quit and not resigned.

That said, thankfully, I start a new job next week.

What should I be doing to attempt to get my unpaid wages back? I haven't been contacted by the insolvency practitioner, or anyone else. What can I expect to get back, if anything. I don't want to screw the boss, as - believe it or not - we're still kinda friends.

Any advice would be very much appreciated.

Thanks

How does that work?  
You are still working for the company and have not "quit" or resigned and yet you are starting a new job next week.
Are the hours so different there is no overlap and you can work for both at the same time?

robatwork

danny_c said:

What should I be doing to attempt to get my unpaid wages back? I haven't been contacted by the insolvency practitioner, or anyone else. What can I expect to get back, if anything. I don't want to screw the boss, as - believe it or not - we're still kinda friends.

Afraid to say, you may be his friend, but he's not yours.