Reply to: Parasol up for sale according to Rob Crossland

[simondolan]

I wonder if this is a similar bill that JSA was saddled with a few years ago, which led them into administration. I seem to recall that JSA owed HMRC about £10 million and couldn't pay?

Yep, but at least JSA didn't owe PE people millions on top. No shadow of doubt that Inflexion will want to get their money out, and if they can't find a buyer you have to assume they will call in their debt.

[Waldorf]

To try to get their money back I guess. With the potential liabilities though (there is a £4m contingent liability in their accounts for VAT), the recent £158m loss by Reed over the expenses thing, and AWR I think they may struggle to get a buyer.

They will still be able to get their money back out though as they have a floating charge over the assets of the Company, and I think their loan is due for repayment fairly soon.

I wonder if this is a similar bill that JSA was saddled with a few years ago, which led them into administration. I seem to recall that JSA owed HMRC about £10 million and couldn't pay?

[BolshieBastard]

This has slowly turned into another LTD v Brollie debate again, can't we all just get along lol. On another note to those of you that do run your own LTD's have you ever had a business partner onboard or do you all work as need I say it one man bands. I got talking to another contractor here and him and his best mate run the company together and split everything equally. He was also telling me when he couldn't make a gig for a couple of days due to illness he sent his business partner in his place fulfilling the substitution clause in the contract.

Fair comment.

But, if my ltd co goes tits up, that would be my fault and 'my' money. But if a brolly goes tits up, while that would still be 'my' money, it wouldnt be my fault.

[Workaday]

To try to get their money back I guess. With the potential liabilities though (there is a £4m contingent liability in their accounts for VAT), the recent £158m loss by Reed over the expenses thing, and AWR I think they may struggle to get a buyer.

They will still be able to get their money back out though as they have a floating charge over the assets of the Company, and I think their loan is due for repayment fairly soon.

Normally they make a load of cash as well though surely. I suppose Inflexion's view of whether the investment was successful will only be known when they sell. A contingent VAT liability could depress the resale value.

[The Spartan]

I think they work on the principle that a professional contractor wouldn't be using an umbrella

A tad harsh don't you think?

[LisaContractorUmbrella]

I think they work on the principle that a professional contractor wouldn't be using an umbrella

Nope definitely blatant discrimination (I pay to be an associate member you know!!) It's brollyism, that's what it is - I should sue

[malvolio]

I think they work on the principle that a professional contractor wouldn't be using an umbrella

Or that nearly 99% of their members don't...

[TheFaQQer]

That's discrimination that is

I think they work on the principle that a professional contractor wouldn't be using an umbrella

[LisaContractorUmbrella]

PCG plus will provide some cover for an agency failing. They don't do the same thing for umbrellas, though.

That's discrimination that is

[pmeswani]

Bought a nice sturdy brolly in a little shop near Kings Cross for £15, how much is this Parasol going for?

I could have bought a nice sturdy brolly for 3 quid. You've been ripped off.

[Scrag Meister]

Bought a nice sturdy brolly in a little shop near Kings Cross for £15, how much is this Parasol going for?

[pmeswani]

This has slowly turned into another LTD v Brollie debate again, can't we all just get along lol. On another note to those of you that do run your own LTD's have you ever had a business partner onboard or do you all work as need I say it one man bands. I got talking to another contractor here and him and his best mate run the company together and split everything equally. He was also telling me when he couldn't make a gig for a couple of days due to illness he sent his business partner in his place fulfilling the substitution clause in the contract.

I run a one-man band. I personally couldn't trust anyone to be a business partner. That may change if I came across a Dragon Den investor, but that would require me to have a business idea that would be unique. :-).

[The Spartan]

This has slowly turned into another LTD v Brollie debate again, can't we all just get along lol. On another note to those of you that do run your own LTD's have you ever had a business partner onboard or do you all work as need I say it one man bands. I got talking to another contractor here and him and his best mate run the company together and split everything equally. He was also telling me when he couldn't make a gig for a couple of days due to illness he sent his business partner in his place fulfilling the substitution clause in the contract.

[TheFaQQer]

I know they do, but I wonder if this has been tested?

Your next sentence shows that this has been tested.

I know when the Icelandic Bank went under (IceSave?), the Government had to pay the compensation. I wonder if the parent company or the Icelandic Government had paid up?

That's the whole point - it's a government guarantee that you will get the money. The UK government was (still is?) pursuing that money from the Icelandic government.

Comparing an umbrella company to keeping your money in a bank, which by law has a government guarantee that you won't lose your money unless you have over £50000 in the bank is a ridiculous comparison.

[pmeswani]

Banks give you £50k protection on your accounts, though. Umbrellas don't.

I know they do, but I wonder if this has been tested? I know when the Icelandic Bank went under (IceSave?), the Government had to pay the compensation. I wonder if the parent company or the Icelandic Government had paid up? Whilst this is the exception rather than the rule, I would be happy to be put in my place if there is some demonstrated evidence that banks that have gone bust have actually paid out the 50k protection.