Issue with MVL and insolvency practicioner

[BarbaraW]

Hello,

Hope everyone is well.

I have a huge problem with Members Voluntary Liquidation and I am hoping someone can advise what else I can do.

Due to IR35 I finished my contracting at the end of February and decided to liquidate the company. At the beginning, the company I have chosen to liquidate my LTD was great. Responding to my emails, taking my calls, sending all required documents etc.
I have mentioned in my initial documents, that I will have to pay VAT for the first quarter of 2020, also a corporation tax. I provided approximate amounts.
When my accountant sent me VAT payment details, I logged in to my business account and saw a zero balance. Liquidator closed my account. I immediately contacted them and informed that I can't pay VAT since the account has been closed. They were extremely slow with all responses, they were not answering my questions (e.g. I was supposed to be paid in 2 tranches in two financial years to benefit CGT relief).
Many, many emails later, when I was enquiring when my money will be distributed, they told me they will pay me half, if my accountant will sign a confirmation that I do not have any outstanding debt with HMRC. They were fully aware I have VAT to pay! so emails again, finally they said they will pay VAT on my behalf. They didn't.
I keep calling them everyday (today every hour!), noone is taking my calls
I sent a formal complaint letter to insolvency practitioner form the company, so far no response. I was actually struggling to find out who I can complaint to, as they were refusing to tell me.
I started emailing then every single day as well, saying that I will be seeking a legal advice. Finally today they told me they won't pay me until they receive that letter from my accountant confirming I have no HMRC debt! but they failed to pay it on my behalf, as previously agreed.
I've been out of work since end of Feb so I desperately need my money, and I don't know what else I can do.
I called HMRC today to ask if I can pay VAT from a personal account, I explained I am not able to get through my insolvency company, and the HMRC consultant told me to talk to them ...
I also tried to call my accountant multiple times, no luck either.

Anyone had similar issue? is there anything else I can do?
At least, can I pay VAT from my personal bank account?

Thank you!

[northernladuk]

Ring Chris Maslin at MVLOnline and have a chat. He's a very helpful guy so I'm sure he won't mind just giving you some advice.

He's likely to post on here shortly but sounds like your stress levels are through the roof so give him a call for peace of mind.

[BarbaraW]

Ring Chris Maslin at MVLOnline and have a chat. He's a very helpful guy so I'm sure he won't mind just giving you some advice.

He's likely to post on here shortly but sounds like your stress levels are through the roof so give him a call for peace of mind.

thank you very much!
yes, I am in a lot of stress, I fell so helpless, ALL my savings from last few years are frozen, I rang them around 100 times (no exaggeration here) , only twice someone took my call, who was said absolutely nothing! I kept talking, asking etc, and the person on a line was mute! this is a joke that they have a licence and are ICAEW accredited (well, only one person from the company but still...)

[northernladuk]

thank you very much!
yes, I am in a lot of stress, I fell so helpless, ALL my savings from last few years are frozen, I rang them around 100 times (no exaggeration here) , only twice someone took my call, who was said absolutely nothing! I kept talking, asking etc, and the person on a line was mute! this is a joke that they have a licence and are ICAEW accredited (well, only one person from the company but still...)

You aren't supposed to post URL's in this section of the forum but go to mvlonline.co.uk (without the space at the end). Number is at the bottom.

[BarbaraW]

You aren't supposed to post URL's in this section of the forum but go to mvlonline.co.uk (without the space at the end). Number is at the bottom.

Thanks again! I will call on Monday, as they are closed now

take care and have a great weekend!

[GhostofTarbera]

Issue with MVL and insolvency practicioner

Looks like they have stolen your money and probably everyone else’s and now on the run

Only joking

Probably a perfectly very good reason they now ignore you after emptying your bank account


Sent from my iPhone using Contractor UK Forum

[Jeremy @ Silva Insolvency]

i'm really sorry to hear about this.

You can complain about an insolvency practitioner on the UK gov website at 'complain-about-insolvency-practitioner'. I'm not sure how quickly they will act though so might might not help too much for a pressing matter like yours. You could also try the ICAEW though I think they will pass you on to the Insolvency Service.

Hopefully the IP is honest. If not, each case should be insured with a 'statutory bond' so the assets should be protected.

Clearly the service is unacceptable. The IP should be working with you so you fully understand the situation and what can be done about it.

The root cause of the issue is probably that the IP is concerned about his/her own risk. If an IP distributes funds to the shareholders and then it later turns out HMRC are owed money the IP will have much to answer for. Hence s/he wants reassurance from the accountant that there are no outstanding amounts owed before making any distributions. I don't see why the IP hasn't paid the VAT and CT if they know the amount owing. They can't really be criticized for paying creditors (and, indeed, interest accrues on those while they are unpaid). Maybe the IP will be satisfied with a letter from the accountant spelling out the amounts owed and how to pay them along with an assurance that there is nothing else to pay.

If necessary I think you can pay both the CT and the VAT online direct to HMRC. You'd need the right account and period references. Once you did that YOU would become a creditor of the company instead of HMRC. Your IP should repay you as a creditor as well as making the shareholder distributions. [Don't let the IP roll them together as distributions otherwise you'll pay more tax on the extra distributions.] It might be better to tell the IP you're going to do that before doing so to check it will resolve the situation for you.

Good luck with all this.

[adubya]

name and shame ? (so others don't suffer the same fate)

[northernladuk]

name and shame ? (so others don't suffer the same fate)

That's not the smartest move while they are holding a good chunk of your money and being tits about it. Might as well kiss it goodbye there and then.

[BarbaraW]

i'm really sorry to hear about this.

You can complain about an insolvency practitioner on the UK gov website at 'complain-about-insolvency-practitioner'. I'm not sure how quickly they will act though so might might not help too much for a pressing matter like yours. You could also try the ICAEW though I think they will pass you on to the Insolvency Service.

Hopefully the IP is honest. If not, each case should be insured with a 'statutory bond' so the assets should be protected.

Clearly the service is unacceptable. The IP should be working with you so you fully understand the situation and what can be done about it.

The root cause of the issue is probably that the IP is concerned about his/her own risk. If an IP distributes funds to the shareholders and then it later turns out HMRC are owed money the IP will have much to answer for. Hence s/he wants reassurance from the accountant that there are no outstanding amounts owed before making any distributions. I don't see why the IP hasn't paid the VAT and CT if they know the amount owing. They can't really be criticized for paying creditors (and, indeed, interest accrues on those while they are unpaid). Maybe the IP will be satisfied with a letter from the accountant spelling out the amounts owed and how to pay them along with an assurance that there is nothing else to pay.

If necessary I think you can pay both the CT and the VAT online direct to HMRC. You'd need the right account and period references. Once you did that YOU would become a creditor of the company instead of HMRC. Your IP should repay you as a creditor as well as making the shareholder distributions. [Don't let the IP roll them together as distributions otherwise you'll pay more tax on the extra distributions.] It might be better to tell the IP you're going to do that before doing so to check it will resolve the situation for you.

Good luck with all this.

Hi Jeremy,

thank you for your response.
I already complained on that gov website, attached all the correspondence, however they closed the case saying they can't see the formal complaint I made to the insolvency practicioner. This was true, but why.
My accounatnt was approched by the member of this company, offering MLV services, since I knew I want to do that, I contacted them. The person I spoken with was very professional, explained the process etc, so I agreed to signed the contract with them. Then two other people were dealing with my case, at the beginning, all great, sending documents to sign, responing to my emails. Until they froze my money. That was it.
I was complaining to them, I was also asking receptionist (the only person who was taking my calls), who can I complain to, withing the company, and she did not tell me!
When I had enough and started filling in that online form on 'complain-about-insolvency-practitioner', tI used: "you can find the name of all insolvency practitioners, including the name of their authorising body here and their contact details at http://www.insolvencydirect.bis.gov.uk/fip1/", I found out, there is only one authorised person in the whole company, and it is none of the person I was dealing with.
But because I never sent a formal complaint to him (obviously, I did no know about him and his name is not on a website), the compaint has been closed or suspended.
I managed to find his details and now I complained, but I need to give him 14 working days before I start another complaints.

Luckily, I don't have any outstanding corporation tax to pay, last year I paid it, and 2 months later I received a warning that If I won't pay it, I will get fined, I thought I made misteke/it was returned and I didn't notice, and paid it again immediately. It was a mistake not on my side, CT was paid, and I ended up paying twice, but my accountant said we can leave it there and I will only have to pay a difference in 2020. CT for 2020 is lower than 2019 so actually HMRC needs to return part of it.

IP are fully aware how much I owe HMRC, they confirmed they will pay that VAT on my behalf, and they received everything to make this payment.(reference, amounts, account number). My accountant told me they never paid it, I started chasing them, asking, no response.
I was very clear, that when they pay VAT on my behalf, my accountant will be able to sign a document confirming nothing is outstanding.

The main problem is noone is taking mine or my accountant calls, sometimes they will respond to email (clearly not reading them, or not understanding them)

I might ask one of my friends to call them, saying they are a potential clients and see if they will answer ...

Again, thanks for help and detailed explanation

Even