Diverted payments

[northernladuk]

Crikey. I'm taking a screenshot of that.

It's generally not a compliment if you'd said the same as me

[ladymuck]

Ladymuck has nailed it for me. Would have said exactly the same.

Crikey. I'm taking a screenshot of that.

[jamesbrown]

OP, there isn't much you can do, realistically. If you'd had IPSE membership, you might have got some back (one of the few things that IPSE membership is good for).

To 'pierce the corporate veil' is very difficult (HMRC haven't managed it to claim taxes owed*

Increasingly, not so difficult with legislation that spells out, in draconian terms, how the liabilities can fall on individuals, like Chapter 9 ITEPA, for example.

[Andy2022]

if the companies and the director are in the UK then there’s a chance you could use of the investigators that specialise in private prosecutions for fraud (etc) to pursue them.

But the reality is I agree with everyone else and it’s probably a lost cause

[Protagoras]

(Sadly) I think ladymuck has this one covered.

It's a harsh reminder that one should not provide extended credit to clients.
While working with the client's customer, one has a degree of leverage in terms of getting paid but once the work has been completed, any leverage evaporates.

[northernladuk]

Ladymuck has nailed it for me. Would have said exactly the same.

[ladymuck]

Your contract was with the liquidated company and they no longer exist, so you can't sue them.

To 'pierce the corporate veil' is very difficult (HMRC haven't managed it to claim taxes owed*) so the chances of proving the director was derelict in their duties and so should be personally sued is very slim. I can't see how you can claim against the company the monies were transferred to.

It's an awful situation to be in, and I sympathise wholeheartedly. Sadly, I think this is not recoverable.




* maybe they have in some rare cases which aren't springing to mind

[NeilShadrach]

A few years ago I did about 12 months work via a small consultancy in Europe for a large company. The contract went fine but at the end the consultancy owed me about 3 months work - all signed off by the customer. There were several contractors in a similar position. The consultancy said they hadn't been paid. The intermediate agency handling payments said they had. After a year they said they were going to court. After another year it emerged that they had gone in to liquidation. I subsequently learned that the contract payments had been made to another company run by the same director as the consultancy which went in to liquidation. So the company with which I had a contract is gone but another company took the money. What are my options? A couple of debt specialists I contacted said they weren't interested as the company had gone bust.