Question on claiming tax back

Under A Funeral Moon

I know this topic keeps coming up, so apologies in advance. I've searched the forum, but couldn't find a thread with circumstances similar to my scenario.

Basically, I've been in employment since 04-09-08. The company ,Company X, ceased trading on 31-07-09 and started back up under a different name, Company Y. The company name, registration number etc. are different, but that's it - same boss, premises, staff, duties, salary etc.

Anyway, in August last year, I received my P45 from Company X. I didn't sign-on or claim any tax back at that time as I started working for company Y immediately. As far as I was concerned, it was the same job. After talking to a few people, it would seem that I'm entitled to claim tax back from 01-01-09 to 31-07-09.

Am I entitled to claim tax back for this period? Can I claim this back now via a P50 even though I'm currently employed?

Mr. Incognito

why would you be entitled to claim tax back?

you worked you paid PAYE, etc.

This arrangement is known as a phoenix company and if they have decided to try to swindle the revenue by winding down and restarting under a new name revenue have extensive powers to infer the debts of the closed company on the continuing trade or phoenix company.

delricyo

You can request a P21 balancing statement from Revenue just by giving them a ring. You will know for sure upon receipt of this.

Under A Funeral Moon

Mr. Incognito wrote: »

why would you be entitled to claim tax back?

you worked you paid PAYE, etc.

This arrangement is known as a phoenix company and if they have decided to try to swindle the revenue by winding down and restarting under a new name revenue have extensive powers to infer the debts of the closed company on the continuing trade or phoenix company.

That's the question I'm asking. I didn't say I was entitled to claim tax back. I don't know whether or not I am, hence me asking the question on a taxation forum.

It's nothing to do with swindling the revenue. It was basically a transfer of the business to new owners. All debts were paid off by Company X before it ceased trading.

delricyo wrote: »

You can request a P21 balancing statement from Revenue just by giving them a ring. You will know for sure upon receipt of this.

Thank you very much, delricyo. Much appreciated.


Another thing, I've been reading up on employee rights in relation to the transfer of a company. I've found some conflicting answers about the length of service though. Can anybody confirm if a transfer of business affects an employee's continuity of service? Is it transferred to their new employment?

Thanks.

nompere

I've been involved in a number of corporate reconstructions that involved employments ceasing in one company and immediately restarting in another. They are completely above board, and there has been no question of "phoenix syndrome".

For the employee it is a seamless transition - the P45 from the old employer is used by the new employer. So in the same way that you wouldn't be entitled to a tax refund on 1 September in an unbroken employment, you aren't entitled to a mid-year tax refund in this case either.

Generally refunds prior to the end of a tax year require a declaration from the taxpayer that he isn't in employment.

I'm not a lawyer, but in other reconstruction cases the employer has assured all the employees that their length of service entitlements are unaffected by the change in the identity of the company carrying on the trade.

Under A Funeral Moon

Thank you, nompere. That's exactly the information I was looking for.

The most important thing to me is that my length of service isn't affected. There's always a possibility that redundancy is lurking around the corner.:eek:

Thanks for the information. You're a gem!