Company Cheque After Closure

[Wary]

I received two cheques after my limited company had closed down, both made out in the company name. (One is for an overpayment on a mobile phone contract, the other is from HMRC for early corp tax payment.)

On at least one previous occasion (maybe more), admittedly quite some time ago, I was able to pay such cheques into my personal account at my local branch, having provided documentary evidence that the company was mine and that it now closed. However, I took them to branches at two different banks today and both refused, claiming that it simply wasn't legal and they had no power of discretion.

Is this correct and hence is it literally a straight choice of either getting them changed into my name or writing them off?

I've searched this forum and see that BrilloPad successfully got an HMRC cheque changed but it was a lot of hassle. The amount was certainly worth walking into town for but not for pulling out all the stops.

[SueEllen]

Get both companies to change the name on the cheques to yours. Yes it is hassle but depending on how you do it it can be done. You probably will have more success sending in letters using recorded signed for post than dealing with a numpty on the phone.

Some banks have been taken to task in the last 12 months for not dealing with the money laundering regulations properly, and as they have other banks in their banking group,they now won't allow any discretion in paying in cheques that are clearly in a different name even if you are the same person.

[Clare@InTouch]

HMRC are usually OK about re-issuing cheques. Just write to them explaining the situation, enclose the original cheque, and ask them to re-issue it to you. It will take a while, as everything tends to with HMRC, but it shouldn't be a problem.

[Wary]

Thanks to those who replied.

I spoke to HMRC who claim that because the company has been formally struck off, then they’re unable to do anything including reissuing the cheque to be payable to me personally. Instead, upon receipt of the refund cheque, they’d send the money to some solicitors ("bona vacantia" was the term she quoted), although there may be some scope for me to apply to them for this money.

Is this consistent with other people’s experience?

Given that it is less than £50, it’s already sounding like it is not worth the hassle!

[northernladuk]

Thanks to those who replied.

I spoke to HMRC who claim that because the company has been formally struck off, then they’re unable to do anything including reissuing the cheque to be payable to me personally. Instead, upon receipt of the refund cheque, they’d send the money to some solicitors ("bona vacantia" was the term she quoted), although there may be some scope for me to apply to them for this money.

Is this consistent with other people’s experience?

Given that it is less than £50, it’s already sounding like it is not worth the hassle!

It certainly doesn't for that amount does it. The solicitor would want some of that I am sure...

Just for info on Bona Vacantia

Bona Vacantia is partly a common law doctrine and partly found in statute. It deals with :


Assets of dissolved companies that have failed to be distributed
Assets of dissolved unincorporated associations that have failed to be distributed
Assets of the estates of deceased persons that have failed to be distributed due to intestacy and a lack of known persons entitled to inherit
Some failed trust property
In the Duchies of Cornwall and Lancaster, a firm of solicitors, Farrer and Co, deals with bona vacantia. In both cases, if no rightful owner is found for the assets, they are donated to charity.[1]
In England and Wales, the Bona Vacantia Division of the Treasury Solicitor's Department of the UK Government is responsible for dealing with bona vacantia assets[2] except in the Duchy of Lancaster or the Duchy of Cornwall.[3] The Treasury Solicitor is appointed by Royal Warrant to be the Crown's Nominee for the collection of Bona Vacantia [4]

The Division has a detailed website which sets out full practices and procedures.[5] In estates cases the Division first seeks (by advertisement and some enquiry) heirs to an estate and if none come to their notice then eventually the assets are realised and the balance transferred to HM Treasury. The process can take a number of years to complete and deals only with solvent estates whose net value exceeds £500.[6]

In dissolved company cases the assets automatically pass to the Crown by law, are realised by the Division and the revenue passed to the Exchequer. The Division has a power to disclaim onerous assets and will routinely disclaim land in adverse possession, but not in every case.[7] Liabilities associated with assets do not automatically follow those assets into Bona Vacantia. Care should be taken to distinguish between assets remaining when dissolution commences (which, e.g., might be distributed to shareholders or others in that process) and those that for various valid reasons remain undistributed at the end of dissolution. Some assets might only come to notice after dissolution has taken place.

[Clare@InTouch]

It depends on timing. The CT interest repayment would be due to you on the CT due date, 9 months after the company year end. Was that before or after the company was struck off?

If before, I would appeal to HMRC on the grounds that the repayment for CT was due whilst the company existed, therefore it's their delay that has caused the cheque to be issued after striking off and you want the money you're due.

If the repayment became due after the company was struck off, there's not much you can do.


Following on from NLUK above - you can apply to the Treasury Solicitor for repayment, but it's a massive hassle and they will take an admin fee. Likely not worth the effort for £50.

[Wary]

It depends on timing. The CT interest repayment would be due to you on the CT due date, 9 months after the company year end. Was that before or after the company was struck off?

If before, I would appeal to HMRC on the grounds that the repayment for CT was due whilst the company existed, therefore it's their delay that has caused the cheque to be issued after striking off and you want the money you're due.

If the repayment became due after the company was struck off, there's not much you can do.

Thanks both for the info.

The company was officially dissolved on exactly the same day that the cheque was issued. She was aware of that and reckoned this meant it was too late. However, this date was actually a week after the 9-month period so from what you say Clare, I would still have grounds to contest it?

[Clare@InTouch]

Thanks both for the info.

The company was officially dissolved on exactly the same day that the cheque was issued. She was aware of that and reckoned this meant it was too late. However, this date was actually a week after the 9-month period so from what you say Clare, I would still have grounds to contest it?

I would, yes. Don't necessarily believe the 'advice' HMRC give you, the people answering the phone don't always know the legal standpoint themselves. The repayment was due on the CT payment date, and it was their delay in issuing it that meant the company had been struck off by the time you got it, thereby preventing you from being able to tell them before dissolution. If it had been an automated BACS payment you'd have had time to tell them too.

[Wary]

I would, yes. Don't necessarily believe the 'advice' HMRC give you, the people answering the phone don't always know the legal standpoint themselves. The repayment was due on the CT payment date, and it was their delay in issuing it that meant the company had been struck off by the time you got it, thereby preventing you from being able to tell them before dissolution. If it had been an automated BACS payment you'd have had time to tell them too.

Thanks Clare. Certainly worth giving it a go.