So just had a call...

[Mich the Tester]

From the owner of ClientCo. Doors closed tomorrow come and pick up anything you have in the office, oh and we can't pay you.

Hector closed them down apparently cos of lots of unpaid tax. Oh well, only a month owed

Not much fun but it's the risk of doing business. Happened to me before and all I can say is that you'll recover and once you've got another gig ít'll be behind you.

[Sysman]

Secured creditors (like banks holding a mortgage) get paid first. Preferential creditors, like employees, get paid after that. Unsecured creditors get paid last.

Somewhere in the mix are the fees paid to the receiver and HMG. They're definitely before employees, but not sure about secured creditors.

When I was made redundant back in the 90s I was an unsecured creditor as far as outstanding expenses were concerned. The top of the range phone I'd supplied a customer with came out of my pocket that way and it still narks me.

However as an employee I was allowed to submit a claim direct to the receivers for lack of notice plus holiday entitlement I was owed. I wouldn't have known that this was an option if I hadn't discussed it with my accountant.

My claim was capped at a certain amount per week, but the cheque that eventually arrived was a very useful contribution towards travel and accommodation expenses incurred in finding work again.

[Contreras]

If/when the company goes into liquidation (it's not clear if that's the case yet) then OP needs to: "prove" the debt by sending invoice copies to the insolvency practitioner; write off as bad debt in the company books; claim VAT relief if applicable, i.e. if not using VAT cash accounting method.

Creditor's ranking is then as follows (annotated in italics as best I understand it):

• Fixed charge holders.
  - secured loans, e.g. on property/assets
• Liquidators' fees and expenses.
  - conveniently, practitioner’s fees will match the value of assets + co. debtors, leaving none left for those below
• Preferred creditors.
  - employee's kept on by the administrator (PAYE, NI & pension contribs.)
• Floating charge holders.
  - employee's fired within 14-days of co. going into administration
  - HMG other taxes
  - unsecured loans
• Unsecured creditors.
  - other suppliers, including OP's invoice
• Interest incurred on all unsecured debts post-liquidation.
  - late payment interest on OP's invoice
• Shareholders.
  - whatever's left (probably nothing)

Source: Practical Law

[Mich the Tester]

If/when the company goes into liquidation (it's not clear if that's the case yet) then OP needs to: "prove" the debt by sending invoice copies to the insolvency practitioner; write off as bad debt in the company books; claim VAT relief if applicable, i.e. if not using VAT cash accounting method.

Creditor's ranking is then as follows (annotated in italics as best I understand it):

• Fixed charge holders.
  - secured loans, e.g. on property/assets
• Liquidators' fees and expenses.
  - conveniently, practitioner’s fees will match the value of assets + co. debtors, leaving none left for those below
• Preferred creditors.
  - employee's kept on by the administrator (PAYE, NI & pension contribs.)
• Floating charge holders.
  - employee's fired within 14-days of co. going into administration
  - HMG other taxes
  - unsecured loans
• Unsecured creditors.
  - other suppliers, including OP's invoice
• Interest incurred on all unsecured debts post-liquidation.
  - late payment interest on OP's invoice
• Shareholders.
  - whatever's left (probably nothing)

Source: Practical Law

Here in the Netherlands, the highest ranking creditor is the tax office, which effectively means nobody else ever gets anything.

[Batcher]

Here in the Netherlands, the highest ranking creditor is the tax office, which effectively means nobody else ever gets anything.

It used to be the case in the UK too but changed a few years ago.

[CloudWalker]

Yeah, rough one. Sorry to hear it.
Go in tomorrow, collect your possessions to the tune of a month's billing.

We did this back in 2001 when I worked in the music industry and they closed our London office.

I got 20 x Dell GX1
5 x platinum discs
And a table and chairs from the office canteen

[Pondlife]

Bit of a tulip situation CH.

Best foot forward!

[RSoles]

Wonder how it went..................

[PurpleGorilla]

Bump

[Cliphead]

Wonder how it went..................

Newish Lenovo G500 laptop, couple of older server spec machines, 5 x Dell desktops & monitors, new 32" Panasonic HD telly, 24 port Netgear switch.

They told me to take what I can fit in the car