Problem with Limited company management

[floricita]

Hi I have a problem with a management company who are managing my ltd company.

Basically, I was contracting last year. It took ages to get it set up. eventually I did and did it through a company called IMS. Unfortunately for me, the contract was suddenly ended two weeks after the set up.

When I spoke to IMS before the set up I was told I would only be charged for weeks I invoice.

I invoiced them 2 weeks worth and then asked to leave IMS as I wasn't contracting anymore.

I didn't hear anything back.

I then went on the website to see if I needed to do anything there. And I saw a form saying "stop services with IMS". It didn't mention any fees or anything just said to fill out the form to stop the services with IMS.

So I filled it out and sent an email saying I assume that I will not be charged for this.

Then because of certain things in my personal life happenned, I did not check my emails for a few weeks and as I assumed this would be the end of it I didn't bother to check old emails.

Then today I get a bill from IMS for the 2 weeks of invoices (fair enough), but also for several weeks of "stopping charges" in total amounting to £350.

So I went back to check my emails and indeed I did get a reply from them saying that it was a stopping service which carries an admin charge every week and is to put the account on hold not to stop services with them.

So now I don't know what to do.

I'm a bit peeved that I wasn't told about stopping charges beforehand or during filling out the form and I do not have the funds to pay them £350 as I have been out of work for a few months now.

any advice on how to proceed please?

[Clare@InTouch]

I would suggest you check the terms and conditions you signed, and check if you agreed to these fees when you signed up. If not, you have grounds to contest them.

[LisaContractorUmbrella]

Good advice from Clare. You've said they were managing your Ltd company - are they an accountancy firm or an umbrella???

[floricita]

Hi, they are an accountancy company.

I don't think they were in the t&cs, but I will check that.

The main gripe I have is that these fees were not mentioned in the stopping services form or that my original request to stop services with them altogether was ignored.

Obviously I have made a mistake in assuming that stopping services meant actually stopping it, but I don't want to give them money for doing nothing.

[northernladuk]

Obviously I have made a mistake in assuming that stopping services meant actually stopping it, but I don't want to give them money for doing nothing.

Why not? We do when we are contracted to them!!

[floricita]

Yes. But when I cease to be a contractor I meant

[Pondlife]

As you mentioned that they set up and managed your Ltd I would think this was an off the shelf managed service company. As such they were running your Ltd for you. IIRC this means two things;

1) There are overheads that still need to be processed. filing your accounts for the year, winding up the company etc. Hence the admin fee.
2) Like working thru a brolly, you will be deemed inside IR35

On 6 April 2007 Chapter 9 ITEPA 2003, more commonly known as the Managed Service Company (“MSC”) Legislation, was introduced. The MSC Legislation applies to individuals providing their services through intermediaries which meet the definition of a Managed Service Company.
From here

HTH

[floricita]

Hi thanks.

There were no set up fees etc and I went for the basic package which was £35/week + vat for every week of invoice + extra fees when you file the accounts etc.

As mentioned, unfortunately because the contract ended abruptly I only had 2 weeks processing from them which I am happy to pay for. I then tried to stop their services, and I emailed them this + later that week filled out a stop services form which I assumed to be the one to fill out to actually stop services with them. No charges were mentioned at anytime.

However they just sent an invoice for £350 which includes x2 weeks invoicing which is correct + several weeks of stopping charges, which upon further investigation I know now is charges applied for holding the account until you contract again. However I did not want this, and was not told about charges beforehand for this and said to them I want to stop working with you.