• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.

Money owed to company if going dormant

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Money owed to company if going dormant

    Hi all,

    As I am moving under an umbrella company, I was planning to make my ltd. company dormant. The problem is that my agency, which I would still work through via the umbrella company, owes me (the company, I suppose) money they are refusing to pay.

    I was going to claim it back via the courts after leaving them, but when I started thinking about making my company dormant, I suddenly wasn't if I could still take them to court.

    So,

    - Can a dormant/closed company still claim the money owed?
    - Can I still claim it as a worker or director? Can (or is it necessary) to transfer the money to to my company, to me?

    Or do I just need to keep the company running until I have my money?

    Thanks

    #2
    Money owed to your company cannot be paid to you. You are two separate legal entities. That's like saying you owe Rolls Royce for a car but you're going to pay the money to Waitrose.

    Have a read to make sure you understand what Dormant means

    https://www.gov.uk/dormant-company
    Last edited by ladymuck; 6 March 2021, 18:23.

    Comment


      #3
      https://www.informdirect.co.uk/busin...-requirements/

      Companies House employ a more rigorous dormant company definition. They define a dormant company as one that has had no significant accounting transactions during the accounting period. A ‘significant’ accounting transaction is defined as one that the company should enter in its accounting records. Provided no such transactions occur during the financial period then the company can have dormant company status.
      So it will no longer be dormant as soon as the money hits.

      To be fair, if you are actively spending time chasing a debt you are doing company work so it can't really be made dormant yet.

      owes me (the company, I suppose) money they are refusing to pay.
      No suppose about it. It's black and white. Two totally different entities.
      I was going to claim it back via the courts after leaving them, but when I started thinking about making my company dormant, I suddenly wasn't if I could still take them to court.
      Very rarely worthwhile going to court. Keep dunning them.

      Fancy sharing why they won't pay? You breach by leaving without the required notice or something?
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Thanks, it was what I expected, just wanted to make sure.

        >> Very rarely worthwhile going to court. Keep dunning them.

        Have been having monthly arguments with them since April. Have involved the Small Business commissioner but sadly the agency is too small, have tried talking sense in to their MD who is just as incompetent, have written to the MD of the company using them, no help.

        Sadly, it's a matter of principle, and no, it is not worthwhile taking to court, but I may do it just to help my tortured fellow contractors from being bullied by these incompetent people.

        >> Fancy sharing why they won't pay? You breach by leaving without the required notice or something?

        They have a clause in our contract that says they don't have to pay us, ever, and they take *full* advantage of it. Many of my colleagues are regularly paid 3-4 month late. The only reason I have managed to be paid reasonably regularly is that I started issuing late payment fee invoices back in April. Because of *the clause*, they claim these fees are not valid so they won't pay them.

        On top, they are currently blankly refusing to pay my January invoice because a manager at their client used the wrong wording or something, in his over-time approval email, and they can't get hold of him now. They are now a week late.

        This agency is so nasty that someone needs to take them down. Criticise me for wanting to do this out of principle, but I have had so many run-ins with this incompetent company that it will nag me forever if I don't do it.

        Comment


          #5
          Just a follow-up question, but I assume if my company go dormant and come back to life later, I can still claim the debt at that point? I'm not overly keen on a court case when I am still working for them.

          Comment


            #6
            Originally posted by morsing View Post
            Just a follow-up question, but I assume if my company go dormant and come back to life later, I can still claim the debt at that point? I'm not overly keen on a court case when I am still working for them.
            You've gone from outside to inside, with the same agency and client, when the agency owe you money dating back to a year ago?
            You want to sue them to 'take them down' but are also worried that it might impact you as still work for them?

            This is not very good business. Do you want to work for me? If I can get away without paying you and you'll still do what I want, then you're a dream employee.
            Last edited by Lance; 7 March 2021, 12:42.
            See You Next Tuesday

            Comment


              #7
              Originally posted by morsing View Post
              Just a follow-up question, but I assume if my company go dormant and come back to life later, I can still claim the debt at that point? I'm not overly keen on a court case when I am still working for them.
              Going dormant doesn't really save you much and just adds this type of worry so why not forget making it dormant? Most accountants offer reduced rates for non trading companies so just do that for now?
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by morsing View Post
                They have a clause in our contract that says they don't have to pay us, ever, and they take *full* advantage of it.
                What? That's ridiculous. That can't be legal. You do work you get paid. I can't see a clause then saying but we don't have to pay you standing up to even a modicum of scrutiny. There has to be more to it than that.

                Many of my colleagues are regularly paid 3-4 month late. The only reason I have managed to be paid reasonably regularly is that I started issuing late payment fee invoices back in April. Because of *the clause*, they claim these fees are not valid so they won't pay them.
                Well they are most definitely wrong. You work, you get paid, if that pay is late you have a legal right for interest. The Late Payment of Commercial Debts (Interest) Act 1998 sees to that. They are pulling your pants down royally.
                On top, they are currently blankly refusing to pay my January invoice because a manager at their client used the wrong wording or something, in his over-time approval email, and they can't get hold of him now. They are now a week late.
                Ugh.. that's not uncommon sadly
                This agency is so nasty that someone needs to take them down. Criticise me for wanting to do this out of principle, but I have had so many run-ins with this incompetent company that it will nag me forever if I don't do it.
                Although I'm sure there is more to this than you've said I'd have to agree. Awful practices there and I'm sure many other agents would also agree they need ripping a new one.

                In your position I would have paid for a solicitor to review the clause and write them a letter refuting the clause and pointing out the late payments is valid. Most agents give their silly games up when challenged. Whether the agent would get rid of you at that point is the problem. If you've left then I'd definitely pay for a solicitors letter. The fact you are showing you are willing to take it further would sort the issue pretty promptly. They know that it will cost you money to go to court but they also know they'd lose so at the moment you are in a who blinks first position. I'd break the stalemate with a solicitors letter first.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by northernladuk View Post
                  [...]

                  In your position I would have paid for a solicitor to review the clause and write them a letter refuting the clause and pointing out the late payments is valid. Most agents give their silly games up when challenged. Whether the agent would get rid of you at that point is the problem. If you've left then I'd definitely pay for a solicitors letter. The fact you are showing you are willing to take it further would sort the issue pretty promptly. They know that it will cost you money to go to court but they also know they'd lose so at the moment you are in a who blinks first position. I'd break the stalemate with a solicitors letter first.
                  I took advantage of the "Half hour free solicitor's advice for businesses" last spring, and he looked over the contract and agreed that there is no way they can just hang around and not pay. They have to pay within 30 days of receipt of the invoice, no ifs, no buts.

                  I have told them this probably over fifty times since then.

                  The problem is that everyone at the agency, including the legal department, are genuinely ignorant and they wholeheartedly believe they are right. They are not going to back down over this.

                  I have spoken to my accountant and will keep my company active for now. I wouldn't call it cheap though.

                  And I will get the court claim raised this weekend.

                  Thanks

                  Comment


                    #10
                    Originally posted by morsing View Post
                    The problem is that everyone at the agency, including the legal department, are genuinely ignorant and they wholeheartedly believe they are right.

                    you sure about that?

                    How about a more likely scenario where they know full well you're right, but have happily strung you along for a year so, and are going to continue doing so.
                    See You Next Tuesday

                    Comment

                    Working...
                    X