self employment - owed money - ltd company

[Bill-K]

Re: self employment - owed money - ltd company

If the right of Lien allows one to 'sequestrate' - then fair enough, it is not a non-runner, and I'm sorry for dismissing it. But the sheer practicality of travelling 400 miles to secure £40K's worth of business assets from what is probably just a rented office seems like quite a challenge. I can understand WTD's reluctance to go down that road.

As Salsmoss implies - if the acknowledgement that the money is owed is in writing, then this gives the court route some legs. But WTD does not want to antagonise this firm and lose his/her source of income, so s/he is on the horns of a dilemma, I guess. For the time being, I suggest that WTD insists that further communication with respect to this issue is carried on in WRITING. By that, I mean get their stuff in hard copy on headed paper. Play the innocent idiot and ask stupid questions - but get the answers in hard copy writing. Get them to relax and treat you like a mushroom. Keep apologising and grovelling insistently - and gather your evidence.

Meanwhile - you need to decide whether you want to continue working for this bunch of nice guys, and perhaps start casting your net wider. I think if it needs to be spelled out, then Salsmoss is probably correct - you can continue to be ripped off by this bunch, or you can try and find another bunch that won't rip you off. THAT - to me - is the decision you have to make first. I really do feel that there is probably no way that you will get this money - AND - continue working for them.

[bedlington83]

Re: self employment - owed money - ltd company

I'm not sure whether the OP is trading as an individual, a ltd company or via an umbrella but it might be worth considering threatening the debtor with action under the late payment legislation: http://www.bis.gov.uk/files/file37581.pdf

[Bill-K]

Re: self employment - owed money - ltd company

Following Tuttsi's advice to issue a Statutory Demand, I wonder if this is worth considering ? Having quickly read up a little on these things, it sure seems like it's worth considering. How about sending them some 'hard copy' request for payment, and mentioning that "you have been advised" that further communication in that respect is made in writing and by post. That might put them on notice that you are 'wising up' to them. Grovel and apologise and play the thicko and let their pompous lawyers feed you their usual carp. Keep paying out the rope, and gather your evidence. Meanwhile, start looking around for another source of employment - because I'm sure you will not get any more work from them after this.

Once you have the alternative in place, then send them the Statutory Demand. It basically seems to give you the right to bankrupt them unless they can prove you wrong. If you have gathered the evidence you need, then they will realise they haven't a chance, and will pay up.

But the question you must first ask yourself is - as Salsmoss has indicated - Which is the more important to you? The £40K owed, or continued employment at the hands of this bunch of nice guys ? I doubt if you'll get both, WTD - although I would love to hear otherwise. That's my take on this, anywayz.

Here's some stuff about Stat. Demands:

https://www.gov.uk/statutory-demands/overview

EDIT: Bedlington has since posted an interesting option. I just want to acknowledge that - thank you !!!

[seduraed]

Re: self employment - owed money - ltd company

What I would do initially is as folllows. draw up a clear list of the work you have done the dates it was delivered and the amount owed. Send the accounts department statements for the overdue money . Don't try to recover all the money in one go . Try small amounts, this is because junior staff may well have the authority to pay small invoices. Send regular statements. As previously suggested keep all communication in wiritng initially . If you get fob offs like well I can only approve X then say fine I look forward to cheque in the next few days. Take what money you can get .
Ask around see if anyone you know has influence with them . Do they have a reputation to lose ? If so going to the papers with a human interest stoy might be effective.

[Bill-K]

Re: self employment - owed money - ltd company

I like Seduraed's slant on this. Realistic, if I may say so.

[enquirer]

Re: self employment - owed money - ltd company

If they continue to be difficult, consider threatening them with a winding up order.

[Bill-K]

Re: self employment - owed money - ltd company

...and a Statutory Demand is - effectively - a legal demand to "Pay up, or wind up."

But I think Sed's "softly, softly" approach is a good idea to try, first.

[enquirer]

Re: self employment - owed money - ltd company

...and a Statutory Demand is - effectively - a legal demand to "Pay up, or wind up." But I think Sed's "softly, softly" approach is a good idea to try, first.

Agreed, try the softer approach first.

It's worth noting that Companies House takes a very dim view of directors whose companies have been compulsorily wound up, which is something that would seriously cramp their style in the future. Pointing this out might make them more amenable.

[brummie]

Re: self employment - owed money - ltd company

can you state which industry you are involved in? is it construction ie CIS deductions to the revenue?

[whattodo1212]

Re: self employment - owed money - ltd company

thanks every one - they have voluntary liquidated now and advised we would be on creditor list

is it better to go on as 2 separate persons or one lump together if 2 of u provided work under one name?

no rep - people have gone to the papers before, they are not bothered - small company but have the anti-midas touch

fortunately, what made them last this long, is myself and i can take that with me :P

any advise re: debt chasing to try and recoup as much as possible would be appreciated

can you state which industry you are involved in? is it construction ie CIS deductions to the revenue?

[wales01man]

Re: self employment - owed money - ltd company

Sorry to say but i think that you will get zilch now they are liquidating and would bet they will be in business again doing same thing and by using a ltd. company you have no claim on them had this years ago when i was a subcontractor in the building when i spoke to the liquidators the advised dont waste a stamp sending any paperwork,sorry to e so blunt but thats how it works

[MissFM]

Re: self employment - owed money - ltd company

Sadly Wales is correct - you will be extremely lucky to get a few pence in the pound. The banks get first call and will snout up any assets if such exist. If not, (trust me, there won't be, not in the company anyway) they will write off the debt and go after their more honest customers (or the taxpayer) for the deficit. Bitter experience speaks. It might be worth having a chat with the liquidator - sometimes they are relatively human and will try to help. Would also bet that Wales is correct with his crystal ball - shortly another company will spring up with the same directors and do the same thing with impunity - groundhog day. Meanwhile, honest creditors like yourself will suffer whilst the directors of this company will likely experience no change whatsoever in their lifestyle - it may even improve. Would also wager that Companies House does not give a FF.

[brummie]

Re: self employment - owed money - ltd company

have they wound up totally, or will they start up in another name?
if they have shut down completely, the first thing i would do is contact their customers and offer my sevices directly. at least you can continue trading....
if they start up again by just changing the name and directorship, then you have 2 choices. carry on working for them and try to re-coup some of the monies by talking to them, but ensuring you are not put into this situation again, or telling her majesty exactly what is going on. she won't take too kindly to them winding up....
i'm affraid to say it sounds like they had cash-flow problems, hence the liquidator being called in. in my opinion your debt will be down the line, as the revenue and the banks will take what is available, leaving the rest to fight for it. sorry if this sounds not too helpfull, but it is an all-too-common occourance and happening all the time.....

[brummie]

Re: self employment - owed money - ltd company

http://www.company-debt.co.uk/forum/...ation-t80.html

have a look at some of the options....

a freind of mine had a similar situation earlier this year.
he was supplying labour only, when payments became slow and fragmented. after a while he found that the contractor had applied for a CVL, but applied to the court and got it either delayed or stopped....( i will speak to him on monday, and will up-date you as to how he did it, but i know he took representation) you can find out exactly what is going on by going onto the companies house web-site or calling them.
my freind took the debtor to court, and won the case that he was owed £31,000. the court placed an order, and the debtor sent a cheque to the courts which bounced......not a wise move, in my opinion! again i'll talk to him on monday and will give you an up-date.

[TUTTSI]

Re: self employment - owed money - ltd company

It is not the banks that get first dibs it is the revenue so depending what is owed to the revenue. And what assets they own and what money the liquidators can call in, they will come up with how much in the pound they will offer to the unsecured creditors.

I would say that you should attend the creditors meeting and that way as you are owed a substantial amount of money you can ask various question as to the assets that they have disclosed or not as the case may be. You are in a strong position to do this and then you can satisfy yourself what they propose offering after the liquidators fees.