The end of the East Coast Mutual Yacht Insurance Association Limited.

Kukri

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An email enquiry to the Liquidators produced this reply today:

“It is anticipated that there will be a distribution to shareholders but I cannot confirm the quantum or timing at this time.”

As I think all Members know, the appointment of the Liquidators was ratified on the 6th January 2022, so exactly six months ago.

There was to my knowledge one outstanding claim when the Association ceased trading. It was not so large as to materially affect the position.
 

Kukri

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I have today emailed the Liquidators:

“I thank you for your email sent on the 6th June.

It is often said that the time needed to wind up a solvent business is six months from the appointment of the Liquidator(s).

I do understand that HMRC have a considerable backlog of work which came about because of the Covid-19 issues.

Eight months have now passed since your appointment.

Would I be safe in assuming that the delay in the distribution of the surplus funds of the Association, a mutual insurer which at the time when it ceased underwriting had, to my knowledge, one employee and one claim, is due to delay in the issuance of the Tax Clearance Certificate?

Yours sincerely…”

If I receive a reply, I will post it here.
 

Kukri

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I have received the following response:

“Good morning

“We anticipate that a solvent liquidation can take up to twelve months from start to finish. However, this can be longer as we require tax clearance from HMRC and they are currently working more than nine months in arrears.

“There are still matters that are being dealt with by the Company accountant and until those matters have been finalised I cannot request tax clearance. I am in contact with the accountant and diarise this on a regular basis to obtain an update from him.

“Once the above matters have been finalised and any liability paid to HMRC I will request tax clearance. Once received I will make a distribution and move the case to closure.

“We have a duty to report to members within two months of the anniversary or sooner if the case is ready to close.

“I am reliant on the accountant to finalise his work and HMRC to provide tax closure but continue to monitor this with a view to getting the liquidation closed as soon as reasonably practicable.

“Kind regards”
 

Kukri

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So, counting on my fingers:

On or before the 6th March 2023, the Liquidators must report to the Members on the state of the liquidation. The liquidation may not be complete at that point. That depends on the ECMYIA’s own accountants. What they have to do, or are doing, we do not know.

Once the liquidation matters are completed, HMRC will need another nine months to issue the Tax Clearance.
 
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Kukri

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The ECMYIA ceased underwriting on the 30th March 2020.

On the 6th March 2023 we may have some news of the progress of the liquidation.

Assuming that the accountants have sorted themselves out by then, which may be overly optimistic, HMRC will need a further nine months or so to certify that the ECMYIA had indeed handled the PAYE tax of its sole employee and handled the VAT on its premium income of around seventy thousand pounds correctly.

Conclusion: if the former members are still alive and in possession of their health and their mental faculties in 2024 they may be able to buy some paint.
 
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Poignard

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The ECMYIA ceased underwriting on the 30th March 2020.

On the 6th March 2023 we may have some news of the progress of the liquidation.

Assuming that the accountants have sorted themselves out by then, which may be overly optimistic, HMRC will need a further nine months or so to certify that the ECMYIA had indeed handled the PAYE tax of its sole employee and handled the VAT on its premium income of around seventy thousand pounds correctly.

Conclusion: if the former members are still alive and in possession of their health and their mental faculties in 2024 they may be able to buy some paint.
It might just pay for a knife and fork tea at my funeral! ?
 

Kukri

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Here’s the commendably prompt reply :

« Thank you for your email.
In accordance with the Insolvency rules and regulations we are only required to provide a report on the liquidation process within two months of the anniversary.

The annual report was available for download and correspondence advising this was sent to you on 13 February 2023. I attach a copy of the report for ease.
A Members Voluntary Liquidation cannot be closed until such time that all tax matters have been dealt with and full tax clearance received from HM Revenue & Customs.

Clearance has been requested but HMRC are working c6-9 months in arrears when responding to clearance requests.

Once tax clearance has been received I will make a distribution to members and move the case to closure.

I will report to members again either at the date of anniversary or sooner if the liquidation can be closed.
Kind regards »

I don’t recall getting anything on the 13th February but I may have missed it.

Did anyone else get anything?

The Report is moderately interesting and can be obtained from the Liquidators, who are Ensors.
 

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Poignard

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Here’s the commendably prompt reply :

« Thank you for your email.
In accordance with the Insolvency rules and regulations we are only required to provide a report on the liquidation process within two months of the anniversary.

The annual report was available for download and correspondence advising this was sent to you on 13 February 2023. I attach a copy of the report for ease.
A Members Voluntary Liquidation cannot be closed until such time that all tax matters have been dealt with and full tax clearance received from HM Revenue & Customs.

Clearance has been requested but HMRC are working c6-9 months in arrears when responding to clearance requests.

Once tax clearance has been received I will make a distribution to members and move the case to closure.

I will report to members again either at the date of anniversary or sooner if the liquidation can be closed.
Kind regards »

I don’t recall getting anything on the 13th February but I may have missed it.

Did anyone else get anything?

The Report is moderately interesting and can be obtained from the Liquidators, who are Ensors.
I received a copy of the liquidators report with a covering letter dated 13 February 2023.

If you like, I can send you copies.
 
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