Best Employment Services Limited liquidation 'loan' repayments

[domthepom]

Dear all,

I have just received a very worrying email from an Insolvency and Asset and Recovery specialists in regards to the liquidation of an umbrella company I used some years back, before I left not trusting them. I was paid using the 'loan' scheme. The above have stated I owe the whole amount I was paid (wages and loan) for this period, (6 figure sum, which would bankrupt me!), citing the contract I signed for loan payments. These payments were only made once my employment agency had paid the umbrella upon receipt of an invoice so the books should balance. I have my original contract between myself and the hiring agency I contracted work through, and the contract between the agency and Umbrella. I suspect that there would be many contractors contacted in the same regard.

I'm really not sure what to do or what my rights are. Is there an option of do nothing and wait to see if they instigate any proceedings? (They notified I have 21 days to respond to the email, but they only have my email address). Should I respond attaching contracts and invoices stating I don't owe anything?

Any advise gratefully appreciated.

[cojak]

I've had to move this to HMRC Enquiries Schemes thread.

Read this first:

https://www.contractoruk.com/forums/...d-summary.html

Don't put all the details in this thread and you are going to have to seek help I'm afraid.

[eek]

The Liquidator of this company does (very occasionally) post here and a search of his posts may explain what is happening



In your case I suspect this recent post from Ian is probably based on this current liquidation

And just like a loan from Barclays is repayable to Barclays, a scheme loan will be repayable, in accordance with the loan agreement terms, on the due date, plus the contractually agreed premium / interest, to whoever owns the loan at that time

That might be a friendly, professional, helpful, constructive liquidator who has a whole team of people and IT kit to reconcile bank account payments to loan agreements and recipients …

and the sad fact is based on comments within the liquidators Statement that you can find at BEST EMPLOYMENT SERVICES LIMITED - Filing history (free information from Companies House) it would appear that your loans are now starting to fall due.

Given that the only expert we have on this forum I can refer to you is Webberg I would suggest calling WTT and seeing what and who they can suggest can help you.

[piebaps]

Adrian Sacco again BEST EMPLOYMENT SERVICES LIMITED - Officers (free information from Companies House)

A familiar and sorry tale. Good luck dom.

[eek]

There are a couple of other very relevant posts that are worth adding here from Ian - as they answer a particular set of questions I will also post the post where the questions were asked. The rest of the thread https://www.contractoruk.com/forums/...quidation.html may not be as useful as that related to demands coming from the director of the scheme not the liquidator of the scheme.

I'd also suggest:

1. Looking at the liquidator's statements at Companies House (e.g. the 28 July 2020 says HMRC are owed £1 but no narrative and the unknown amount advanced to clients). Then keep monitoring those (you can get auto alerts but they won't be frequent).

2. Talk to the liquidator to find out what is going on (but I would not suggest using real names or your own phone number without knowing more). Try to get the liquidator to post here. Try to help them understand what actually happened in terms of the way that the scheme worked so that they wonder whether the directors acted appropriately.

3. Consider who is sending the emails asking for money back. If it is the liquidator then it needs to be taken very seriously. If it is the director or employees then tell the liquidator that.

4. Wonder why a random solicitor cold calling you in these circumstances is appropriate and whether the SRA thinks that is appropriate.

5. Wonder what the extra money that you actually got was. It'll be taxable (99.99999% certain) but it might not be a loan. If I give someone an advance of their September salary in August, it might mean that it is just taxable in August and not repayable at all (or not repayable at all if they work in September).

Remember that the liquidator has a limited budget (probably £15k to £30k here) and so won't be able to get into detailed technical discussions and detailed litigation unless the position is very clear or they are supported by a creditor.

As an actual liquidator (although not of this co), I'm in a position to comment on these points:

1 Agreed

2 No - if you want an open honest conversation, have it on "without prejudice" basis (ie so that neither party will misuse what is said) but use your real name, and your real circumstances, so that you can have a proper conversation. I terminate calls from people who won't say (and evidence) who they are

3 and 4 Agreed

5 The liquidator will compare sums paid with the paperwork and HMRC RTI returns and should send you a schedule showing all the monies you received, less what was taxed through PAYE, and what he/she considers the balance to be

Do check what you receive and take legal advice from someone both qualified and independent

Do be prepared to tell (and prove to) the liquidator if you've disclosed the income to HMRC and settled with them - it will make a difference

Don't assume that a lack of funds will prevent a liquidator from pursuing the debt

Don't just ignore it and hope it will go away

And yes I know none of this is good news for the OP, sadly I don't have any magic bullet that is going to solve problems for people who have joined schemes (only a plan to hopefully help people avoid future ones).

[Stevie1965]

I've also received the same letter.

Dear all,

I have just received a very worrying email from an Insolvency and Asset and Recovery specialists in regards to the liquidation of an umbrella company I used some years back, before I left not trusting them. I was paid using the 'loan' scheme. The above have stated I owe the whole amount I was paid (wages and loan) for this period, (6 figure sum, which would bankrupt me!), citing the contract I signed for loan payments. These payments were only made once my employment agency had paid the umbrella upon receipt of an invoice so the books should balance. I have my original contract between myself and the hiring agency I contracted work through, and the contract between the agency and Umbrella. I suspect that there would be many contractors contacted in the same regard.

I'm really not sure what to do or what my rights are. Is there an option of do nothing and wait to see if they instigate any proceedings? (They notified I have 21 days to respond to the email, but they only have my email address). Should I respond attaching contracts and invoices stating I don't owe anything?

Any advise gratefully appreciated.

Hi Dom, I received an email on Saturday. Nearly had a heart attack. I'm sure we are not the only ones.

[domthepom]

Hi Dom, I received an email on Saturday. Nearly had a heart attack. I'm sure we are not the only ones.

Stevie, i've contacted a service provider as provided in an earlier link: Contact Us - WTT Consulting
I wonder if there is scope for collaboration on this...

I need a defibrillator!

[webberg]

We've been kindly mentioned above and at risk of breaching whatever rules apply, I can confirm that WTT has a number of clients who made use of Best Employment Services and a number of related entities which are now under the control of Mr Richardson of Grant Thornton in Leeds.

We are presently collecting information and reviewing the circumstances of the alleged loans. Once complete, (perhaps by the end of this week), we will formulate a plan and calculate the likely costs.

We are happy to take enquiries from concerned parties.

I would also point out that I am not the only "expert" available and that a brief scan of the threads in this section would reveal others who are equally (or better) "expert".

[eek]

Hi Dom, I received an email on Saturday. Nearly had a heart attack. I'm sure we are not the only ones.

My rough estimate is that there will be between 150 and 400 people involved (probably towards the lower end of that scale).

As for webberg's post - while there may be other experts around, they don't post here and it is clear from the liquidator's report and Mr Richardson's other posts (on here) that a divided approach may not be worthwhile (£500,000 or so has so far been invested by GT with little recovered and there is a request for a 15% recovery fee on top).

[Stevie1965]

Stevie, i've contacted a service provider as provided in an earlier link: Contact Us - WTT Consulting
I wonder if there is scope for collaboration on this...

I need a defibrillator!