In the previous year the RPS has received a number of fraudulent claims. Although these claims passed the verification checks undertaken by IPs, they were later found to be based on falsified documents. HMRC, as the body with overall control and management of the National Insurance Fund, is taking forward investigation into the fraud. As a result of this, the RPS has implemented additional controls which have stopped further fraudulent claims being processed and increased checks on new claims being received.
The RPS will now no longer use RP3 forms to gather information from directors. Instead, a new directors’ questionnaire is being issued in its place. Although similar to the RP3, this new questionnaire asks more specific questions to assist the RPS in establishing whether or not the director held employee status. It also includes requests for documents to support the director’s claim, such as contract of employment, HMRC employment history, P60s, wage slips and the latest full company accounts.
In addition to this, where a director has paid themselves at a rate lower than National Minimum Wage, they will be asked to sign a declaration to that effect. This declaration contains an acknowledgement that the RPS may refer the claim to HMRC and the Insolvency Service’s Investigation and Enforcement Services (“IES”) for breach of the National Minimum Wage Act 1998.
Any enquiries regarding this article should be directed towards email: RPS.Stakeholder@insolvency.gov.uk