Agency in administration - Coal IT

[DeadEyedJacks]

VAT reclaim on Bad Debt

And to rub salt in the wounds.

VAT on December invoice paid across to HMRC on same day they went into administration.

Six months to wait to get that back !

[Tank]

Credit checks on "Coal Intelligent Technology Limited" from May 2015 until Dec 2016 suggested credit limit double my monthly billings.

Only red flags appeared January 2017, spike in credit checks and red flag for late payment of invoices.

At which point I'm already on the hook for December work already delivered and most of January 2017.

Really sorry for you (and others) caught by this but have to respond on your "Only red flags appeared January 2017" comment. It was posted in the 'Agencies To Avoid' thread in December that people working through Coal IT were having payment issues.

Sorry you missed those posts.........

[nozmeister]

alledgedly one of the previous incarnations of coal It dissolved following a "vat cockup" where they owed the taxman a significant sum... Then slight name change and they are back in business.

[eek]

And to rub salt in the wounds.

VAT on December invoice paid across to HMRC on same day they went into administration.

Six months to wait to get that back !

Why aren't you using cash accounting for vat?

[SueEllen]

Why aren't you using cash accounting for vat?

Lots of accountants don't like it even though it makes sense for all small businesses to use it as cash flow is king.

And for those who didn't know even on the flat rate scheme you can use cash accounting.

[DeadEyedJacks]

Why aren't you using cash accounting for vat?

Good question in hindsight. Yes, we'll be coming off flat rate scheme and moving to cash accounting come next VAT quarter.

[SueEllen]

Good question in hindsight. Yes, we'll be coming off flat rate scheme and moving to cash accounting come next VAT quarter.

There is a cash accounting scheme on the flat rate VAT scheme.

[fidot]

And to rub salt in the wounds.

VAT on December invoice paid across to HMRC on same day they went into administration.

Six months to wait to get that back !

Use cash accounting so that you only pay vat once you have received it

[billybiro]

This is an object lesson in why you should stop working with agencies. Period.

FTFY.

[billybiro]

Rate was also less as the claimed the rate was agreed with the client beforehand & not negotiable because the account manager forgot to alter the job ad to reflect the lower rate! (which I would not have agreed to anyway). Left after a few weeks....

So you were quoted a rate. They then performed a classic bait-and-switch with a new, much lower rate, which you say you would not have agreed to, yet you did agree to it and started the contract anyway. Are we supposed to feel sympathy?