JSA Want My Money

[millassoc]

My first post - please be gentle.

I am not looking for legal advice - just some opinions.

I use Chorus (JSA) as an umbrella company for my IT contracts and
have done since 2003.

I have just recieved a letter along the lines of 'during an audit
it transpires that in 2004 we both underpaid and overpaid you - the
outcome of which is you owe us £2000 - please let us have a cheque'!

Obviously my first thought was to send a cheque plus my house deeds
and car keys but........

Questions:

1. Anyone else dealing with Chorus (JSA) been contacted like this (or is
it just me).

2. Are they just trying it on and am I within my rights to tell them to
go away and transfer my business elsewhere (which I will do anyway).

Any thoughts.

[Ardesco]

First of all find out if they are right.

If they are right then you should pay them back the money as it is not yours.

I belive there is a time limit for them to claim the money back however, but I can't remember what it is off the top of my head, I think 3 years but I may have just made that up.

On the positive side you can always claim to not have any spare cash and offer to pay them back at a rate of £1/week for the next 38 years. Also a good opportunity to start your own LTD Co, pay yourselfa minimum wage and if they decide to take you to court say look i only earn £5000 a year, my £1 a week offer is all I can afford !!!

Bear in mind that they srewed up so you have some power hen it comes to deciding the terms for paying them back the money.

[Pondlife]

Isn't the problem that as they process your payroll they can just deduct it at source if you try to take the pi$$?

[errorista]

Incompetent service.

And they dont mind revealing this fact to the whole world for the sake of a few bucks.

Do as Ardesco says and then dump them.

[Ardesco]

Transfer your business elsewhere first to stop that from happening. As I said in previous post, god time to start up your LTD Co.

[Darren@UptonAccountants]

Employee

Seek legal advice!!

Remember you're an employee of the umbrella company, if they've messed it up should repay it on your terms.....and change brollies or set up a limited company!

[ASB]

Isn't the problem that as they process your payroll they can just deduct it at source if you try to take the pi$$?

They can't (legally) do that without your agreemenet. All deductions from payroll beyond PAYE and NI have to be agreed by the recipient or imposed by a court.

[millassoc]

ongoing...

Thanks for all your advice.

I have since recieved a '... will refer to a debt collection agency..' letter.

I have now asked them for a complete breakdown of the payments/invoices etc. and a full set of company accounts for that period.

I have also mentioned using a firm of 'forensic accountants' to go over the figures.

I dont even know if there is such a thing!!

I have also told them that any costs that I incur I will be looking to JSA to pay.

I haven't had a reply yet!!

[tim123]

I have also mentioned using a firm of 'forensic accountants' to go over the figures.

I dont even know if there is such a thing!!

There is, but it isn't what you need. You just need a bog standard freelance book-keeper to check it.

I have also told them that any costs that I incur I will be looking to JSA to pay.

This is probably reasonable, subject to your statutory obligation to mitigate your costs.

tim