Help Needed...Agency has entered in liquidation overnight and owe me 40K

[CuriousIan]

A few years ago my company had a similar situation, although a lot less money was involved. I contacted Roger Sinclair at egos.co.uk. He explained the situation to the client, who confirmed that they had not actually yet paid the agency for the period in question. The client were happy with the work and didn't want my company to be out-of-pocket. Roger persuaded the client to pay directly, which they agreed to do as long as my company indemnified them against any potential claim for payment coming from the agency. Which it did. It only cost my company a few hundred pounds in legal fees in the end.

[karuLabs]

If you are on monthly invoicing and 30 days payment terms, at the end of the month you can have 45 billed days owing. If the agency fails to pay on time and gives a process error excuse and a promise to pay, you could easily go another week before downing tools. Suddenly you are at 50 days owing. That can easily be 40k.

This is exactly what happened , i am contracting through them for last 3 years and they pay me monthly.
When they missed paying for november month , they told me there was technical issue and will process is asap , i never doubted them.
In hindsight , that was a red flag which i should have taken it serious

[Old Greg]

Obviously the OP isn't, but they only cover up to £10k anyway, on the basis that it's a reasonable risk exposure level. £40k is careless to say the least.

VAT is not part of the equation though and can be recovered via the usual VAT100 process.

If you are on monthly invoicing and 30 days payment terms, at the end of the month you can have 45 billed days owing. If the agency fails to pay on time and gives a process error excuse and a promise to pay, you could easily go another week before downing tools. Suddenly you are at 50 days owing. That can easily be 40k.

[malvolio]

Are you an IPSE plus member? Phone them next

Obviously the OP isn't, but they only cover up to £10k anyway, on the basis that it's a reasonable risk exposure level. £40k is careless to say the least.

VAT is not part of the equation though and can be recovered via the usual VAT100 process.

[karuLabs]

Thanks for all the suggestions , agency name is Optimum-IT and director is Warren Jupp
I have contacted safe collections.

Will let you all know how it goes

[karuLabs]

Thank you everyone for the suggestions.
Agency name is optimum-it and was contracting through them for the last 3 years.

Never saw this coming.

[krytonsheep]

Worth talking to your accountant about the VAT liability on the 40k you've invoiced the agency for as well.

[Old Greg]

And because no-one else has asked, how the hell did you end with them owing you 40k?

I didn't like to ask. Not much help really.

[DaveB]

And because no-one else has asked, how the hell did you end with them owing you 40k?

[GhostofTarbera]

You are likely to get 2% back after liquidation vouchers take anything left alive

As client to go direct tomorrow




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What agency by the wAy ?


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[GhostofTarbera]

You are likely to get 2% back after liquidation vouchers take anything left alive

As client to go direct tomorrow




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[Old Greg]

Contact Safe Collections immediately.

Google them.

This. And speak to client now if still working and see what new contractual arrangements can be made for ongoing work. Don not work another day without this in place.

See if you can get a better rate out of it by going direct or via someone like Hays who will take a margin of approx 4.7%.

[ladymuck]

Are you an IPSE plus member? Phone them next

[cojak]

Contact Safe Collections immediately.

Google them.

[karuLabs]

Hello Fellow Contractors,

Agency thorugh which i was contracting has closed overnight and below email has been sent when asked for the money they owed me.
What are my options and any advise please?

##########
Unfortunately due to the Company’s financial position no further payments will be made. Any payments made now will be at risk of being challenged as preference payments as per S239 of the Insolvency Act 1986.

The Company will shortly enter liquidation and all amounts due to you will form an unsecured claim. Whether or not a dividend (payment) becomes payable to creditors in due course is dependent on a number of variables which are not yet known at this stage.

I am sorry this is not better news at this time of year.
##########