Originally posted by chopper
View Post
- 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.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Agency in administration - Coal IT
Collapse
X
-
-
Originally posted by malvolio View PostWhich is £3k more than the nothing you would have otherwise...'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
My first agency back when I started, seemed alright but outside of contact it's always been nearly impossible to get hold of them. Now it makes sense... they'd already fled to the Bahamas [emoji38]Comment
-
Coal IT In Liquidation
Administrators report has now been circulated to creditors.
A creditors meeting will occur shortly.
There's a big black hole in the finances...Comment
-
Originally posted by DeadEyedJacks View PostAdministrators report has now been circulated to creditors.
A creditors meeting will occur shortly.
There's a big black hole in the finances...
Soon after they bought Coal IT, they "offered" to put about 50 of their contractors through their books, and Coal IT agreed. Coal IT then requested a credit increase with Beebi (spelling might be wrong), their invoice discounter, to pay for all these contractors. After a few months it became apparent that the clients of the Jade Global contractors were not paying Coal IT, so Beebi sent in administrators to monitor what was going on at Coal IT. In January this year a bunch of clients dropped Coal IT since they weren't paying their contractors so this forced Coal IT into administration. At this point they still owe Beebi £2M with total debts of £3M.
My theory is Jade Global used Coal IT as a vehicle to rip off Beebi. They created 50 "ghost" contractors who would raise maybe £10K in invoices each, totalling £500K which Coal IT would then request Beebi to pay. By the time Coal IT realises the clients aren't paying them it could be 2 or 3 months in, by which point Beebi would have already paid out over £1M. The whole thing is made easier if Coal IT was colluding with them and not verifying the invoices were approved by the client(s). So basically they tried to milk Beebi for as long as possible.
Like I said, this is just my theory with no evidence, but I find it highly suspicious that a new construction company would buy a failed recruitment agency and then it just happens to turn out that 50 contractors they put through them turn out to have non-paying client(s).Comment
-
the lesson to be learnt from things like this is if any agency asks you to work for excessive payment terms tell them no. I consider working a month an then having to wait for more than 7 days at the end of the month to be excessive.
I always insist on weekly pay and 7 day terms and if I have to work monthly it will only be for one of the big recruitment agencies who have been around for a long time with a big client.
Agencies who ask you to work a month and then wait another 2 or 3 weeks at the end of the month for payment need a reality check, would they be prepared to give you £20,00 worth of credit, not a chance so why are they asking us to do this for themComment
-
Jade Global same people who wanted to takeover Chelmsford City football club?
Chelmsford City's takeover by the Jade Global Group is off, members' meeting hears | Essex Live
Lots of companies with similar names and history of phoenixing every few years.
https://beta.companieshouse.gov.uk/search?q=jade+global
Like you said, needs someone to investigate further.
None of which will get the unsecured creditors, aka contractors their money back.Comment
-
Originally posted by JohnM View Postthe lesson to be learnt from things like this is if any agency asks you to work for excessive payment terms tell them no. I consider working a month an then having to wait for more than 7 days at the end of the month to be excessive.
I always insist on weekly pay and 7 day terms and if I have to work monthly it will only be for one of the big recruitment agencies who have been around for a long time with a big client.
Agencies who ask you to work a month and then wait another 2 or 3 weeks at the end of the month for payment need a reality check, would they be prepared to give you £20,00 worth of credit, not a chance so why are they asking us to do this for themComment
-
What happens with things like VAT in this scenario? I assume our ltd's would get a refund if VAT returns generate VAT based on invoice.
Also wonder what would happen if inside IR35 in the public sector? If those who still take those contracts are to be treated and taxed similar to perms then surely part of that should be to make sure we're "fairly" paid even if the agent goes bust! Wishful thinking I bet....won't be able to pay our "fair share" of taxes if we don't receive the cashComment
-
Originally posted by SuperZ View PostWhat happens with things like VAT in this scenario? I assume our ltd's would get a refund if VAT returns generate VAT based on invoice.
Also wonder what would happen if inside IR35 in the public sector? If those who still take those contracts are to be treated and taxed similar to perms then surely part of that should be to make sure we're "fairly" paid even if the agent goes bust! Wishful thinking I bet....won't be able to pay our "fair share" of taxes if we don't receive the cash
If you don't then you get a VAT refund.
Btw there are some accountants who are unaware there is a cash accounting scheme for the flat rate scheme."You’re just a bad memory who doesn’t know when to go away" JRComment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment