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  1. #1

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    Default contracting with a dissolved Company.. Recruitment agency didn't notice

    not sure if anyone can help? I am also not sure how this hasn't been picked up but I'm aware of a contractor that has been contracting for several years under their own limited company. however this company was struck of several years ago. The company name has appeared on several contracts unfortunately using my address, however both recruiters who arranged these contracts with large companies don't seem to have done any checks on this company. if they had they would of realised that it had been struck off by companies house for non compliance and can only assume no company filing etc was submitted. the company being dissolved isn't a legal entity anymore however surely the recruitment agencies would of picked this basic check up? Is this normal or is it very easy to trade and contract when your limited company doesn't exist anymore and become unnoticed in the system?

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    ..would HAVE....

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    More time posting than coding


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    I've found that agencies are still very much in the "employment" mode - ie they are very good at checking ID, references, qualifications etc of the individual contractor but don't perform any of the commercial checks on the contractors company that you would expect in a B2B contract.

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    Quote Originally Posted by Whitelighteningwarrior View Post
    Is this normal
    Is it normal for parties in a contract to perform no due diligence? In our experience, yes it is a depressingly regular occurrence (however our profession may skew our view on this somewhat).

    Quote Originally Posted by Whitelighteningwarrior View Post
    or is it very easy to trade and contract when your limited company doesn't exist anymore and become unnoticed in the system?
    If nobody at the agent checks, then they would never know. Similarly if the company no longer exists and is presumably not submitting accounts or tax info to the various Gov bodies then it will likely stay under the radar for some time.

    However, sooner or later than anomaly will be picked up and questions will be asked. If this is your company then you need to get out in front of this situation now before HMRC notice.

    As stated above, you need urgent legal advice from both an accountant and quite possibly a solicitor.
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  5. #5

    Fingers like lightning

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    How would the contractor in this case actually get paid? Surely the agency would only pay into an account in the business name and any account associated with that business would have been shut down when the company was dissolved?

    Unless this is fishing by the OP who has thought of a scheme and wants holes picked in it?
    Last edited by NickNick; 12th November 2014 at 11:58. Reason: Have, Of, lets call the whole thing off
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    Quote Originally Posted by NickNick View Post
    How would the contractor in this case actually get paid? Surely the agency would only pay into an account in the business name and any account associated with that business would HAVE been shut down when the company was dissolved?

    Unless this is fishing by the OP who has thought of a scheme and wants holes picked in it?
    There was a guy on here the other day who hadn't got his Ltd bank account set up and the agent was refusing to pay him (as he != his Ltd)

    There was a joking suggestion that if he'd named his company Jo Bloggs Ltd, he might have managed to get them to pay to a personal account.

    Wonder if that happened in this scenario.

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    Quote Originally Posted by Whitelighteningwarrior View Post
    The company name has appeared on several contracts unfortunately using my address
    How did you find out? Did you open post addressed to Some Ltd, Your address?

    Or was a debt collector at your door?

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    Quote Originally Posted by stek View Post
    ..would HAVE....
    You missed the first 'struck of'(f) at the end of the second line.

    Anyhow, this is a strange post if ever there was one. It could be the OP pulling a flanker or, they could be an innocent bystander.

    That said, is it absolutely certain the company in question has been struck off? Any limited can have a registered name but can 'trade as.........' and maybe the trading name is just the same (some coincidence if it is though!)
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  9. #9

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    Quote Originally Posted by NickNick View Post
    How would the contractor in this case actually get paid? Surely the agency would only pay into an account in the business name and any account associated with that business would have been shut down when the company was dissolved?

    Unless this is fishing by the OP who has thought of a scheme and wants holes picked in it?
    Account name isn't checked / used when making a payment to a bank account - as long as the sort code and account number are valid, then the payment goes through.

    In the past I've been asked to show a certificate of incorporation, but whether anyone ever checked that the company still existed is a completely different matter.
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  10. #10

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    Quote Originally Posted by jmo21 View Post
    How did you find out? Did you open post addressed to Some Ltd, Your address? Or was a debt collector at your door?
    My thoughts exactly

    Looks like the OP himself is a bit dodgy, 1 post, didn't come back, is he trying to set up such a fraud himself and is he looking for tips.

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