Why don't you issue a winding up order to get their attention. And then maybe get work elsewhere.
https://www.gov.uk/wind-up-a-company...owes-you-money
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Reply to: Money owed to company if going dormant
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Previously on "Money owed to company if going dormant"
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Originally posted by Lance View Post
you sure about that?
How about a more likely scenario where they know full well you're right, but have happily strung you along for a year so, and are going to continue doing so.
I have spoken to enough people there that I can tell you with confidence that they honestly, genuinely, firmly believe that to be the case.
I have run in to a bit of a stumbling block, as I can't see a way to use Money Claims Online as a company, without being a solicitor. Is this correct?
My options to register is Individual, Solictor or Organisation, where organisation is:
"I am an organisation without legal representation that issues claims for money against other parties or makes defences for claims made against me. I wish to register as an MCOL user and issue claims using the online service."
Am I meant to register as an "Organisation"?
Thanks
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The way I interpret this thread is that your company is owed money for work completed which the agency has yet to pay. You could continue to chase the agency for this money as it's owed to the company. Remember the company is a separate entity to you as an individual so it's all about the company/agency relationship here. If after 6 months, you still get nowhere, you can make the decision whether to write it off as a bad debt in the company books or continue to chase for the outstanding sales invoice amount.
The terminology of company dormant that you use is probably misunderstood. From a technical point of view, (and this has been covered many times before) is that the company is not "dormant" but actually non-trading. In the true sense, a company is classified as dormant if it has been incorporated but not traded at all. In your case, you've used the company to trade through but have decided to go down a different route so you're putting the company on ice i.e. non trading status. This does not stop you from chasing the outstanding debt or doing anything in the company. You'll still have to produce company account and a corporation tax return every year and file these with Companies House and HMRC etc.
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Originally posted by morsing View PostThe problem is that everyone at the agency, including the legal department, are genuinely ignorant and they wholeheartedly believe they are right.
you sure about that?
How about a more likely scenario where they know full well you're right, but have happily strung you along for a year so, and are going to continue doing so.
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Originally posted by northernladuk View Post[...]
In your position I would have paid for a solicitor to review the clause and write them a letter refuting the clause and pointing out the late payments is valid. Most agents give their silly games up when challenged. Whether the agent would get rid of you at that point is the problem. If you've left then I'd definitely pay for a solicitors letter. The fact you are showing you are willing to take it further would sort the issue pretty promptly. They know that it will cost you money to go to court but they also know they'd lose so at the moment you are in a who blinks first position. I'd break the stalemate with a solicitors letter first.
I have told them this probably over fifty times since then.
The problem is that everyone at the agency, including the legal department, are genuinely ignorant and they wholeheartedly believe they are right. They are not going to back down over this.
I have spoken to my accountant and will keep my company active for now. I wouldn't call it cheap though.
And I will get the court claim raised this weekend.
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Originally posted by morsing View PostThey have a clause in our contract that says they don't have to pay us, ever, and they take *full* advantage of it.
Many of my colleagues are regularly paid 3-4 month late. The only reason I have managed to be paid reasonably regularly is that I started issuing late payment fee invoices back in April. Because of *the clause*, they claim these fees are not valid so they won't pay them.
On top, they are currently blankly refusing to pay my January invoice because a manager at their client used the wrong wording or something, in his over-time approval email, and they can't get hold of him now. They are now a week late.
This agency is so nasty that someone needs to take them down. Criticise me for wanting to do this out of principle, but I have had so many run-ins with this incompetent company that it will nag me forever if I don't do it.
In your position I would have paid for a solicitor to review the clause and write them a letter refuting the clause and pointing out the late payments is valid. Most agents give their silly games up when challenged. Whether the agent would get rid of you at that point is the problem. If you've left then I'd definitely pay for a solicitors letter. The fact you are showing you are willing to take it further would sort the issue pretty promptly. They know that it will cost you money to go to court but they also know they'd lose so at the moment you are in a who blinks first position. I'd break the stalemate with a solicitors letter first.
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Originally posted by morsing View PostJust a follow-up question, but I assume if my company go dormant and come back to life later, I can still claim the debt at that point? I'm not overly keen on a court case when I am still working for them.
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Originally posted by morsing View PostJust a follow-up question, but I assume if my company go dormant and come back to life later, I can still claim the debt at that point? I'm not overly keen on a court case when I am still working for them.
You want to sue them to 'take them down' but are also worried that it might impact you as still work for them?
This is not very good business. Do you want to work for me? If I can get away without paying you and you'll still do what I want, then you're a dream employee.Last edited by Lance; 7 March 2021, 12:42.
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Just a follow-up question, but I assume if my company go dormant and come back to life later, I can still claim the debt at that point? I'm not overly keen on a court case when I am still working for them.
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Thanks, it was what I expected, just wanted to make sure.
>> Very rarely worthwhile going to court. Keep dunning them.
Have been having monthly arguments with them since April. Have involved the Small Business commissioner but sadly the agency is too small, have tried talking sense in to their MD who is just as incompetent, have written to the MD of the company using them, no help.
Sadly, it's a matter of principle, and no, it is not worthwhile taking to court, but I may do it just to help my tortured fellow contractors from being bullied by these incompetent people.
>> Fancy sharing why they won't pay? You breach by leaving without the required notice or something?
They have a clause in our contract that says they don't have to pay us, ever, and they take *full* advantage of it. Many of my colleagues are regularly paid 3-4 month late. The only reason I have managed to be paid reasonably regularly is that I started issuing late payment fee invoices back in April. Because of *the clause*, they claim these fees are not valid so they won't pay them.
On top, they are currently blankly refusing to pay my January invoice because a manager at their client used the wrong wording or something, in his over-time approval email, and they can't get hold of him now. They are now a week late.
This agency is so nasty that someone needs to take them down. Criticise me for wanting to do this out of principle, but I have had so many run-ins with this incompetent company that it will nag me forever if I don't do it.
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https://www.informdirect.co.uk/busin...-requirements/
Companies House employ a more rigorous dormant company definition. They define a dormant company as one that has had no significant accounting transactions during the accounting period. A ‘significant’ accounting transaction is defined as one that the company should enter in its accounting records. Provided no such transactions occur during the financial period then the company can have dormant company status.
To be fair, if you are actively spending time chasing a debt you are doing company work so it can't really be made dormant yet.
owes me (the company, I suppose) money they are refusing to pay.
I was going to claim it back via the courts after leaving them, but when I started thinking about making my company dormant, I suddenly wasn't if I could still take them to court.
Fancy sharing why they won't pay? You breach by leaving without the required notice or something?
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Money owed to your company cannot be paid to you. You are two separate legal entities. That's like saying you owe Rolls Royce for a car but you're going to pay the money to Waitrose.
Have a read to make sure you understand what Dormant means
https://www.gov.uk/dormant-company
Last edited by ladymuck; 6 March 2021, 18:23.
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Money owed to company if going dormant
Hi all,
As I am moving under an umbrella company, I was planning to make my ltd. company dormant. The problem is that my agency, which I would still work through via the umbrella company, owes me (the company, I suppose) money they are refusing to pay.
I was going to claim it back via the courts after leaving them, but when I started thinking about making my company dormant, I suddenly wasn't if I could still take them to court.
So,
- Can a dormant/closed company still claim the money owed?
- Can I still claim it as a worker or director? Can (or is it necessary) to transfer the money to to my company, to me?
Or do I just need to keep the company running until I have my money?
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