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

[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

[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.

[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.

[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

[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.