The increased threat from scam and fraudulent activity has prompted Companies House (21^st June 2021) to provide updated guidance on What to do if you think you’ve spotted a scam pretending to be from Companies House, giving stark examples of scam emails, letters and telephone calls.

Companies House report examples that include businesses and individuals being contacted and asked for payment of a late filing penalty over the telephone, people claiming to be from Companies House requesting details of their company’s directors or asking for authentication codes.  Spurious emails containing official looking documents as attachments or phishing emails, one claiming that hundreds of phone calls and emails have been sent in your company name asking customers to click a link to see what type of information has been sent. 

Companies House advise that they never contact you by telephone to find out who your officers are or ask for secure information. If anyone calls claiming to be from Companies House asking for this information – their advice is to try to get a return telephone number and contact them immediately on 0303 1234 500.

If you receive a suspicious email, you should report it to Companies House via  phishing@companieshouse.gov.uk.

“At Top Service we are now seeing more and more potential fraud being reported from bone-fide company details being used without their knowledge, to fake companies being set up to obtain goods fraudulently and an increase in scam calls and emails claiming to be from official companies in particular Inland Revenue, Companies House and rogue collection officers is a real threat. At Top Service we urge our members and the wider construction industry to minimise the risk of fraud by carrying our formal checks before providing company and personal information to any third party or when providing goods on credit, it is vital to not just ask and record details but verify them and check, check, check.” Emma Miller, Company Director at Top Service Ltd.

What to check and how

Check phone numbers, dial them or use the internet to search for any reports of misuse. Once a fraudster has received the information they need, leaves your depot or takes delivery that is likely to be your last contact with them. Is the telephone number ringing and is it a normal tone? If it goes to the answerphone, is the mailbox full? This is a sign that messages are not being returned. Why would an active business not return and delete messages?

Send a confirmation email – we hear of so many people whose initial suspicions to fraud are raised when they email the invoice and the email bounces back. Check it first – a confirmation email thanking the customer for their application or order can help to pre-warn you of any problems and is also customer service friendly so your customers will see this a great customer service tool!

The internet opens a lot of avenues to carrying out non-intrusive checks. Look at the addresses you have been given, are they active trading addresses (as opposed to a mailbox)? Is it a residential address when you would expect it to be a business address or vice versa? There could of course be perfectly legitimate reasons for having numerous trading and / or delivery addresses but taking the time to check could be what will save you! Never allow goods to be cross loaded to unidentifiable vehicles waiting at the delivery location.

Search the business name and or directors / proprietor / partners names with other suppliers you may come across out of area news reports or other information that will help you.

Using a credit application form is the easiest way to ensure relevant and appropriate details of the potential customer are being taken. It doesn’t have to be long winded or lengthy, simply take the basic details you need to open a credit account and protect yourself:

Company Name AND Registration No
The entity of business if not Limited
Names of key people in the business
Contact numbers & email addresses

Using a credit application form is one thing but the key to protecting yourself is in the detail and checking the form and information provided for any anomalies is where you will be able to protect yourself the most. Use a credit reference agency to check you have been approached by a bone-fide company.

• Check the Directors of the Limited company and see if they have a lot of either active Directorships, resignations or insolvent companies.
• Use your credit reference agency to look at the trading history of the business, have other suppliers experienced non-payment or made enquiries about potential fraudulent applications.
• Where you can, make a physical visit to the customer or potential customer if something doesn’t feel right to you. 

If you already have a trading history with the business, look at the orders that have previously been placed. Some fraudsters will establish a good line of credit with suppliers, placing small, regular orders to give the appearance of a good customer. Once an order pattern starts to change, ask questions to establish the reason for the change.

In short:

• Confirm the details on the application are true, using credit information, the internet or ID checks
• Check the condition of the business applying for goods on credit
• Is the order consistent with past transactions or as you would expect it to be?
• Satisfy your gut feeling and if you can’t, assess the risk and if needs be decline the application.

Testing is also important. It will help to ensure new processes and current processes are providing the protection you need. Internally, submitting a fictitious order or application will help you to track if you are getting the desired outcome.

What if you are a victim of fraud?

Report it – Call 101 or report to Action Fraud 
Share it – Sharing your experiences is the quickest way to stop fraudsters in their tracks. Talk to your trade association or industry specific credit information agency who will be able to make others in your industry aware.

For further information or support relating to fraud prevention or anything else relating to credit management please contact us:

Top Service Ltd
Tel: 01527 518800
Email: helpdesk@top-service.co.uk

2-3 Regents Court
Far Moor Lane
Redditch
B98 0SD

The Insolvency Service has announced the High Court’s decision to wind up rogue recovery service Global Investigations and Recoveries Limited (17 May 2021). 

The Government press release published 2 June 2021^[1], states that Global Investigations and Recoveries Ltd failed to ‘co-operate with the Insolvency Service’s enquiries and did not deliver any accounting or trading records. Investigators could not establish the full extent of ‘harm caused ‘by Global Investigations and Recoveries but it is understood that one potential victim was quoted £4,000 to engage with the rogue ‘debt collection’ service.

“At Top Service we regularly field enquiries from customers when they are approached by agencies claiming they can collect from insolvent companies. Our advice is to remain vigilant and to be wary of anyone who claims they can collect money from an insolvent business, it isn’t impossible, but claims must meet certain criteria. Over the years supporting the construction industry we have seen many bogus debt collection businesses come and go, we advise our customers to carry out extra due-diligence checks whenever an agency asks for money up-front for collection work.” Emma Miller Company Director at Top Service Ltd.

Construction companies’ write-off thousands of pounds because of bad debt caused by late and non-payment each year and the sector overall ranks high on the national insolvency table which makes businesses operating in the built industry especially vulnerable to fraud and the target of unscrupulous phoenix companies.  

“There are certain occasions when limited liability will not fully protect a company’s directors or shareholders and they may subsequently be held responsible for the debts of their company. Where a Company has gone through a formal / terminal insolvency procedure an office holder would look to investigate the company and follow up with any wrongdoing in order to maximise returns to creditors. Its therefore unlikely an outside agency would be able to take action off their own back unless instructed to do so by a creditor or Insolvency Practitioner. The most typical examples where it may be the case that a claim could be made against a Director personally include, 

Preference:  placing a creditor or guarantor in a more favourable position than would have been the case if the payment had not been made. Transactions at undervalue: selling assets for less than their true value.” Paul Hughes, Restart BTI

At Top Service we urge the construction industry to seek advice and do the necessary background checks when approached by any individual or company claiming to be a debt recovery specialist. At Top Service Ltd we take compliance very seriously having been trading for 30 years we are known for our attention to detail and high-quality customer service. All senior Top Service staff are members of the Chartered Institute of Credit Management and our collections professionals are hand-picked and trained to the highest standards.  Top Service Ltd is authorised by the FCA and corporate member of the Credit Services Association (CSA).  We work in partnership with trusted law firm Silverback Commercial Law Services Ltd who also have an excellent compliance record.

Are you struggling to recover the money you are owed?

Top Service debt recovery service is operating normally. Our team are proving that their skills are second to none with the results we are achieving during this challenging time. Top Service members have access to an exclusive combination of no collection, no fee recovery services.

“We welcome the opportunity to talk to you about any bespoke changes you would like to make to our debt recovery procedures to fit the culture you have for maintaining customer relationships, whilst addressing the need to keep cash flow as fluid as possible for your business.Please contact our collections team to talk through any individual cases or to explore how else we can support you,” Emma Miller, Company Director Top service.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.

^[1] https://www.gov.uk/government/news/rogue-recovery-specialists-wound-up-in-court?utm_medium=email&utm_campaign=govuk-notifications&utm_source=b2d55ed3-f1fe-43ae-bf1c-f5d2422c6ade&utm_content=daily

Every year, thousands of insolvency notices are sent to creditors of companies that are subject to some sort of formal insolvency procedure. In our experience, these notices are either disregarded or treated with apathy due to the general perception that the insolvency of a customer will lead to a full debt write off and dividend rates are perceived to be poor. 

This article will focus on liquidation, the most common insolvency procedure. Since registered companies became available to the investing public, the Joint Stock Companies Winding-Up Act 1844 and all its successors contain a route for a company’s life to be brought to an end.

The basic purpose of liquidation is to conclude a company’s activities and to sell off assets ‘liquidate,’ turn chattels into ‘liquid assets’ or money to pay creditors, or shareholders if any value remains. Either the company (its shareholders or directors) can initiate the process through a “voluntary liquidation”, or the creditors can force it through a ‘compulsory liquidation.’ 

Over the years the insolvency profession has tried to introduce legislation and adopt practices to improve creditor engagement and reduce the costs of all insolvency processes. However, from our experience we do not believe that this has had the desired effect and presently we feel that creditor engagement is at an all-time low.

Creditors of insolvent estates should be aware that they have a meaningful role to play in the insolvency process which could significantly improve the prospects of any return to them.

What will I receive?

The first thing you are likely to receive when a company is looking to go into liquidation is a notice of a decision procedure by post. With this notice you are likely to receive details of the type of procedure and deadlines along with a proof of debt and voting form / proxy to enable you to participate in the insolvency process and lodge your claim. In our next article we will talk more about the mechanics of this process in relation to a liquidation.  

Recent legislative changes have altered the requirement for a liquidator to automatically hold ‘in-person’ creditors’ meetings unless a specific number of unsecured creditors request it. 

This procedure is called a deemed consent procedure which the vast majority of Insolvency Practitioners now use as there is a general belief that it expedites the process. In our view this procedure has further alienated creditors as they are unable to question a director at a meeting of creditors. 

At least 10% of creditors by number or value (or 10 individual creditors) can request that a meeting of creditors is held, otherwise proposals and notices can be sent via electronic means.

Prior to the decision date you will receive the statement of affair for the company which sets out its assets, liabilities and likely dividend prospects. This document should be received no later than one working day prior to the procedure. 

Appointment of liquidator

A liquidator is appointed firstly by shareholders however creditors have the right to appoint their own liquidator should sufficient support be obtained by other creditors. The liquidator is appointed by the majority of the creditors voting by the decision date. 

Creditors Committee

During any insolvency proceedings, unsecured creditors have the right to form a creditors’ committee. This usually consists of between three and five members.

Forming a committee can ensure that creditors have a ‘voice’ during the insolvency process. Creditors often feel that they are overlooked or that there is a veil of secrecy around the insolvency which prevents them from having any influence on the outcome.

The role of the committee is to oversee the insolvency process on behalf of unsecured creditors. The establishment of the committee and their participation in the process can address some of the concerns and ensure that proper consideration is given to their interests.  The committee is of particular use on more complicated insolvencies where there are matters for the office holder to investigate and its members can provide invaluable help to them by acting as a ‘sounding board’ for future decisions.

Committees often pass several resolutions one of which is in relation to agreeing the costs of the procedure. Creditors gain a better understanding of the process and costs when acting on a committee. 

●      Committee members do not receive payment for their role but are entitled to claim for their reasonable travelling expenses.

●      Committee members can request a meeting with the office holder at any stage of the proceedings, but these are usually agreed mutually in advance.

●      A committee member is also entitled to receive regular reports from the office holder to update them on their progress.

What other steps can I take to protect my position?

If you have supplied goods to the company and you have a ‘Retention of Title Clause’ within your terms of trade, you may be able to make a claim for their return which may reduce your overall exposure. 

Whilst this is a technical area, in summary, if you can identify goods on site that specifically relate to an outstanding invoice these can be reclaimed if they have not been irreversibly processed into another product. 

Other problems can arise when a creditor assumes that they have a right to reclaim unpaid stock, but the debtor company refuses to recognise the clause, or claims to have no knowledge of its existence.

It is good practice to contact the liquidator as soon as you are aware of the insolvency. You should send a copy of your terms of trade, a statement showing the extent of your debt, relevant invoices and other supporting documentation and enquire if any of your goods remain on site. 

If you have credit insurance, then your broker should be notified of the insolvency and you should ensure that you adhere to the policy conditions in order that a successful claim can be made. We have found that it is often the case that the insurer will require some sort of confirmation of debt from the office holder for the claim to succeed.

If you are registered for VAT, once the debt is over six months old you can reclaim the VAT element back from HMRC

Dividend Payments 

If there are sufficient assets to declare a dividend then there is specific hierarchy as follows: 

Fixed Charge Holder

First Tier Preferential Creditors – Employees

Second Tier Preferential Creditors – HMRC (Taxes Deducted at Source) 

Unsatisfied Floating Charge Holders

Non-Preferential Unsecured Creditors 

The vast majority of trade creditors will fall into the last category. If you did not submit your claim at the onset of the insolvency, you will be given one final opportunity to do so otherwise you will be excluded from the dividend.

If a liquidator formally rejects your claim, you should in the first instance try to seek a compromise with the liquidator. If no agreement is reached within 21 days, you will have to apply to the court for adjudication on the matter.

Creditor Services 

Dealing with insolvent debt can be difficult and, in some cases, time-consuming. Having a business partner to support you through this process can make a huge difference to the success of your claim.

The creditor services team at Restart BTi can assist with the entire claims process. We will lodge your initial claim, deal with any queries and ensure that important deadlines are met. We will oversee fee approvals on your behalf and call on our own licensed Insolvency Practitioner when we feel that an independent review or investigation may be required.

We are delighted to represent clients at meetings or on committees and will ensure that the difficult questions are asked to make certain we endeavour to get the best possible outcome for our clients. With our wide network of support, we can engage with other creditors and seek further support to guarantee that your voice is heard.

This service is offered to Top Service clients at no charge so if you want to improve your dividend prospects and remove the burden of managing your insolvency documentation then please contact Paul Hughes on 01246 959388 for further information.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business. 

This article is produced in collaboration with Paul Hughes Director for Restart BTi Licensed Insolvency Practitioners

Today (Tues 11^th May 2021) following consultation by the courts on the alignment of court fees. The online discount received for any work issued through MCOL (money claims online) is to be cancelled from the 18^th May 2021. From that date all online court fees will be increased to the current standard paper fee.

The new fee structure is outlined below (provided by trusted partner Silverback Law)

Claims:

Bailiff:

Emma Miller, Top Service Company Director says;

“With court fee’s increasing and the restrictions on winding up petitions remaining in place we are seeing more and more customers reviewing their current collection methods and looking for alternatives to court action. At Top Service we have adapted our collections methods to suit the struggles of contacting companies who are working from home and potentially on furlough – achieving great results. We advise members to look at their options for collection, take advice from their collections service provider on the best course of action and consider all options.” 

Are you struggling to recover the money you are owed?

Top Service debt recovery service is operating normally. Our team are proving that their skills are second to none with the results we are achieving during this challenging time. Top Service members have access to an exclusive combination of no collection, no fee recovery services.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.

To a business recovery and insolvency expert it may be obvious that a company is heading towards financial difficulty or even insolvency proceedings.  A creditor however may not see the warning signs when a business owner is “putting their head in the sand” and avoiding the reality of the situation.   

Insolvency is not an instant or immediate state. It can take weeks, months or even years for a faltering business to get to the point that it is insolvent.

The two basic methods of assessing whether a company is insolvent are as follows:

Cash Flow Test

Is the business able to pay its debts as and when they fall due or in the reasonably near future? 

Highlighted below are some of the typical indicators we come across prior to a business failing. These on their own may not indicate a failing company but in conjunction with each other may indicate issues. 

If a customer is displaying some of the following behaviours it may be worth probing deeper before extending further credit. Remember that emotions cannot play any part in making that decision.

• Has the customer exceeded their agreed credit terms?
• Have requests for an extension or renegotiation on prices been made?
• Have there been several broken promises of payment?
• Are they making unnecessary invoice disputes to delay matters?
• Are they unable to produce up to date financial information when undertaking credit reviews?
• Are regular reviews of external credit reports undertaken to monitor for detrimental data?
• Are they subject to any pending legal action e.g., CCJ or winding up petition?
• Is the customer ignoring your correspondence and calls?
• Have you had to repeatedly place your customer on stop?
• Has their credit rating been reduced?
• Have they tried to seek credit terms with alternative suppliers?
• Do they have repayment plans with other creditors?
• Do they have a Time to Pay Arrangement with HM Revenue & Customs?
• Has the business lost a key customer that it has not or is unable to replace? 

• Is there an alternative competitor in the market that could potentially reduce their market share?
• Does the customer only have a small number of key clients and how are these performing, have they been subject to a bad debt or insolvency?
• Are they using invoice financing or other funding more frequently?
• Have they sold or refinanced assets?
• Are you able to obtain trade credit insurance for the customer?
• Is the customer laying off staff or making redundancies?

Balance Sheet Test

Are the company assets less than its liabilities?  It is not unusual for a company to have net liabilities so this should be considered alongside the cash flow test.  

As a credit manager it is sometimes difficult to form a view on the publicly available information given that it is historic and does not necessarily reflect the current financial position. This is where an industry specific credit information provider comes into play. This type of credit information provider can provide data gathered from other traders in your industry. This information will build a picture of how the customer is paying other trade suppliers at the current time. 

• Has the company continually required the use of an overdraft?
• Has it submitted its statutory accounts on time?
• Do you have open conversations with your customer?  Are they indicating any financial issues within the company?  Is there a high turnover of staff?  Are there problems with the landlord?
• How old are the directors?  Is any succession planning evident?
• Have long standing directors suddenly resigned?
• Has the business moved to smaller premises?
• Is the company showing reduced profit margins?  It is far too easy to be misled by thinking high turnover leads to bigger profits. If overheads are also growing at an exponential rate, the profitability could in fact be reduced. An often-used quote in the insolvency profession is “turnover is vanity, profit is sanity.”

Legal 

A further test to consider is whether your customer is subject to any pending legal action. 

If the customer is subject to a statutory demand or a County Court Judgement, these are precedents that a creditor could use to follow up with a Winding up Petition after which your customer could be forcibly liquidated. Legal action may be taken as a strong warning signal of pending insolvency if the matter cannot be resolved. 

Trading History

With creditors only being able to issue a winding up petition in certain circumstances during the pandemic, it is more important than ever to closely monitor your customers performance and ensure that you have a robust credit and collection policy. 

Top Service is a key stakeholder in your business credit management function. Our credit reports include everything you need to know before extending further credit.  

Where you might be struggling to collect on your outstanding invoices the effective collections service offered by Top Service is based on a combination of skilled collectors with a pro-active approach to collections, to help your overdue invoice become your customer’s priority for payment.

We along with our trusted partners can offer you support and advice on all credit management matters. 

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.

This article is produced in collaboration with Paul Hughes Director for Restart BTi Licensed Insolvency Practitioners

This week (25^th March 2021) the government has updated the Corporate Insolvency and Governance Act by extending the moratorium period for issuing winding up petitions and statutory demands, against companies, to the 29^th June 2021  in order to relieve pressure being placed on businesses dealing with coronavirus.

To help protect businesses from insolvency a number of changes were introduced under the Corporate Insolvency and Governance Act (2020) (Coronavirus) including the restriction of statutory demands and winding-up petitions which have previously been extended on a number of occasions up until March 2021. 

The now three-month extension until the end of 29^th June 2021, means winding up petitions are prohibited if the statutory demand served was between March 2020 and September 2020.  

Emma Miller, Top Service Company Director said:

“We see the extension of these restrictions as a positive move in that it has given those suppliers the opportunity to see how well a specialised third-party agency can work as an alternative to court action. Suppliers have seen a reduced amount of court fees being paid whilst keeping cash coming into the business. 

At Top Service we have adapted our collections methods to suit the struggles of contacting companies who are working from home and potentially on furlough – achieving great results. We advise members to look at their options for collection, take advice from their collections service provider on the best course of action and consider all options.” 

The temporary measures were introduced in the Corporate Insolvency and Governance Act 2020

Are you struggling to recover the money you are owed?

Top Service debt recovery service is operating normally. Our team are proving that their skills are second to none with the results we are achieving during this challenging time. Top Service members have access to an exclusive combination of no collection, no fee recovery services.Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.

The government has this week (16 March 2021) announced the appointment of Liz Barclay as Small Business Commissioner to ‘spearhead the national effort to crackdown on delayed invoices – which cause thousands of small businesses to close every year.’^[1]

The government press statement announced Liz Barclay as the first female Small Business Commissioner to take up the post which was created to help small businesses secure the payments owed to them and to ‘galvanise UK businesses behind a new culture of prompt payment.’

Liz Barclay’s appointment follows reforms to the Prompt Payment Code (PPC) which came into effect earlier this year (January) to crack down on delayed invoices owed to small businesses. Under new reforms, companies that have signed up to the Prompt Payment Code will be obliged to pay small businesses within 30 days – half the time outlined in the previous code.^[2]

Emma Miller, Top Service Company Director said:

“I’m sure this appointment will be welcomed by small business owners. I spend a lot of time talking to and advising our customers on how good and relevant credit information at the start of a business relationship and robust credit management processes throughout the trading cycle, will help to reduce the risk of incurring a bad debt. My hope is that this new appointment will help to create the right culture to further reduce the risk of bad debt.” 

A statement made by the Department for Business, Energy & Industrial Strategy (19 January) confirms that ‘despite almost 3,000 companies having signed the code, poor payment practices are still rife, with many payments delayed well beyond the current 60-day target required for 95% of invoices. Currently, £23.4 billion worth of late invoices are owed to firms across Britain.

Liz Barclay’s appointment also comes following last year’s consultation to ‘increase the scope and powers of the Small Business Commissioner including the power to order payments, levy fines and open investigations based on third-party information.

What is the Prompt Payment Code (PPC)?

The Prompt Payment Code (PPC) is administered by the Chartered Institute of Credit Management on behalf of the Department for Business, Energy and Industrial Strategy (BEIS). Compliance with the principles of the Code is monitored and enforced by the Prompt Payment Code Compliance Board. The Code covers prompt payment, as well as wider payment procedures. 

Top Service Member Benefits

All signatories of the Prompt Payment Code (PPC) are eligible for a 25% discount on Top Service Ltd subscription fee. 

Are you struggling to recover the money you are owed?

Top Service debt recovery service is operating normally. Our team are proving that their skills are second to none with the results we are achieving during this challenging time. Top Service members have access to an exclusive combination of no collection, no fee recovery services.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service Ltd can support and help you protect your business.

https://www.gov.uk/government/news/liz-barclay-named-as-small-business-commissioner-to-lead-crackdown-on-late-payments-to-small-businesses?utm_medium=email&utm_campaign=govuk-notifications&utm_source=3384e69e-25e5-4ce8-b075-3c5e88085d8f&utm_content=daily2

https://www.gov.uk/government/news/government-tackles-late-payments-to-small-firms-to-protect-jobs^[

https://www.gov.uk/government/consultations/increasing-the-scope-and-powers-of-the-small-business-commissioner

^[

New statistics on company and individual insolvencies in England and Wales for February 2021 have been released by the Government Insolvency Service and reports that since the start of the first UK lockdown the overall numbers of company insolvencies have remained low compared to pre-pandemic levels. 

The overall reduction in company insolvencies is in part driven by the range of government support put in place to financially support companies in response to the coronavirus (COVID 19) pandemic^[1] although the true picture of the impact of company and individual insolvencies to the construction industry is likely not to be fully understood until the 12 months ending 2021 as the nation fluctuates between local and national lock down measures. 

To help protect businesses from insolvency a number of changes were introduced under the Corporate Insolvency and Governance Act (2020). The Government announced (Dec 2020) that the temporary restrictions placed on issuing statutory demands and winding up petitions has been extended to 31st March 2021 in order to relieve pressure being placed on businesses dealing with coronavirus (read full article). The extension until the end of March 2021, means winding up petitions are prohibited if the statutory demand served was between March 2020 and September 2020. 

Reported in the Government’s Monthly Insolvency Statistics (February 2021) ‘between 26 June 2020 and 28 February 2021, four companies obtained a moratorium and five companies had a restructuring plan sanctioned by the court. The low number of cases of since the Act came into force is likely to be as a result of the range of Government support provided to companies as mentioned above, including the range of temporary measures that apply until 30 June 2021.’^[2]

Emma Miller, Top Service Company Director says;

“Whilst the support offered by the Government is welcome, I know some of our customers have felt frustrated, in particular with the insolvency restrictions, specifically where the debtor company has a history of non-payment and where overdue invoices date back to pre-pandemic times. At Top Service we advise our members to discuss with us alternative collection options and our customers have seen good collection results from our bespoke collection strategies, whilst maintaining their business relationships.” 

Top Service Ltd debt recovery service is operating normally. Our team are proving that their skills are second to none with the results we are achieving during this challenging time. Top Service members have access to an exclusive combination of no collection, no fee recovery services.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service Ltd can support and help you protect your business.

^[1] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/969214/Commentary_-_Monthly_Insolvency_Statistics_February_2021.pdf

^[2] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/969214/Commentary_-_Monthly_Insolvency_Statistics_February_2021.pdf

We started in an old damp building with one typewriter, one photocopier, one landline phone and a fax machine in 1991, at the height of a recession. 

Telephoning the office when out on the road involved finding a working phonebox and having plenty of change! In those days most businesses paid either by cash or cheque and “the cheque must be lost in the post” was a common excuse for late payment.  Another excuse we heard on a few occasions was “I’ve broken my wrist so I’m unable to sign any cheques”. Everything we did was recorded on paper or index cards and stored in boxes, lever arch files or filing cabinets.  Our desks had an anglepoise lamp, a filofax and an adding machine.

Phoenix companies were a regular occurrence in those days due to the recession and lax laws.  Fraud was also prevalent in the construction sector at the time and all our investigation was done the hard way.  We had no computers, no mobile phones and no internet.  We spent hours sitting at microfiche readers staring at blurry screens studying rows of figures in an attempt to unravel frauds and scams.  Our network of members would all get involved in fraud prevention by keeping an ear to the ground for us.  It was like a grapevine of information and, with everyone working together, we were able to stop many fraudsters in their tracks.

There were many more independent businesses 30 years ago.  There has been a lot of consolidation since then, particularly in the builders’ and plumbers’ merchants sector. We now boast the use of cutting-edge credit management technology, in order to provide our members with the most up-to-date and accurate trading data which has never been more important in the wake of the worst economic challenge in decades. 

Lisa Cardus, Founding Director

In celebration of 30 years in business Top Service Ltd are offering a 30-day FREE trial
The 30-day trial is completely commitment free. Customers will have access to an unlimited amount of credit checks and 3 chasing letters as part of the trial. During the trial customers will also have full and unlimited access to the customer service team who are on hand to provide any support required.
To take advantage of this offer customers are requested to register online and complete a short form (Offer valid until 31st March 2021)

From today (1 March 2021) the domestic VAT reverse charge must be used for most supplies of building and construction services.

The charge applies to standard and reduced-rate VAT services:

• for individuals or businesses who are registered for VAT in the UK
• reported within the Construction Industry Scheme

What is the VAT Domestic Reverse Charge for Building & Construction Services and who will it affect?

HMRC has introduced the VAT domestic reverse charge for building and construction services to be enforced from today, 1^st March 2021.

The new VAT reverse charge rules will impact certain Construction Industry Contractors, Trade Contractors and Subcontractors with the aim to defend against on-sale fraud in the construction sector. VAT-registered Contractors who supply construction services to another VAT-registered business will be required to issue a VAT invoice stating that the service is subject to the domestic reverse charge.

The business in receipt of the services must declare the VAT due on that supply to HMRC via a VAT return instead of paying the amount directly to the contractor. In short, the ‘customer receiving the service will have to pay the VAT due to HMRC instead of paying the supplier’.

HMRC guidance sets out what you need to do to be ready for the start of the domestic reverse charge which includes:

• checking whether the reverse charge affects either your sales, purchases or both
• making sure your accounting systems and software are updated to deal with the reverse charge
• considering whether the change will have an impact on your cashflow
• making sure all your staff who are responsible for VAT accounting are familiar with the reverse charge and how it will operate

HMRC guidance clearly outlines when you must use the reverse charge for the following services:

• constructing, altering, repairing, extending, demolishing or dismantling buildings or structures (whether permanent or not), including offshore installation services
• constructing, altering, repairing, extending, demolishing of any works forming, or planned to form, part of the land, including (in particular) walls, roadworks, power lines, electronic communications equipment, aircraft runways, railways, inland waterways, docks and harbours, pipelines, reservoirs, water mains, wells, sewers, industrial plant and installations for purposes of land drainage, coast protection or defence
• installing heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection systems in any building or structure
• internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, repair, extension or restoration
• painting or decorating the inside or the external surfaces of any building or structure
• services which form an integral part of, or are part of the preparation or completion of the services described above – including site clearance, earth-moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works

When you must not use the reverse charge

Do not use the charge for the following services, when supplied on their own:

• drilling for, or extracting, oil or natural gas
• extracting minerals (using underground or surface working) and tunnelling, boring, or construction of underground works, for this purpose
• manufacturing building or engineering components or equipment, materials, plant or machinery, or delivering any of these to site
• manufacturing components for heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection systems, or delivering any of these to site
• the professional work of architects or surveyors, or of building, engineering, interior or exterior decoration and landscape consultants
• making, installing and repairing art works such as sculptures, murals and other items that are purely artistic signwriting and erecting, installing and repairing signboards and advertisements
• installing seating, blinds and shutters
• installing security systems, including burglar alarms, closed circuit television and public address systems

Further information and guidance can be found here on the HM Revenue and Customs website

More information and visual aids can be found on the VAT Reverse technical guide.