The Government has announced (28 March 2022) that the last of the Temporary Insolvency Restriction Protections are being lifted. 

To help protect businesses from insolvency a number of changes were introduced under the Corporate Insolvency and Governance Act (Coronavirus) to protect business from creditor action since June 2020. 

Most of these measures expired at the end of June and September 2021, except for restrictions on winding up companies, which were extended until 31 March 2022.This remaining insolvency restriction will not be extended further, allowing the insolvency regime to return to its pre-pandemic operation.

Emma Miller, Top Service Company Director says:

“The Government is now advising business leaders to seek professional insolvency advice to help protect their business. 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.

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,” 

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

What makes Top Service Ltd different? 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences which can make a real difference between company profit and painful write-offs. 

Are you struggling to recover the money you are owed?

Top Service members have access to an exclusive combination of no collection, no fee debt recovery services.

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

In an ideal world, the objective of a party entering into a contract is to ensure that their matter runs as smoothly as possible, with both parties involved hopeful that it will be completed on time and as agreed.

Having said that, even the most carefully laid out matters do not always go exactly as planned. 

For example, in a construction contract, additional unanticipated works may be required, or certain products installed may not work as expected and the likely scenario is that works take longer than foreseen. As a result, the project will usually have a higher unexpected cost, and this may lead to a claim by one of the parties if it cannot be resolved through early negotiations.

Common types of claims that may occur between parties could include: – 

• breach of contract
• non-payment
• claims for extensions of time, loss and expense
• variations
• defective works
• liquidated damages
• breach of a professional consultant’s duty of care

Tactics to settle your dispute 

When considering how to settle a dispute, the parties can resolve their differences by using various routes.

The more established and effective route for resolution of a dispute is through the courts. This procedure commonly involves a court process and is subject to court disbursements and legal fees. Whilst this can be an efficient and, in some cases, necessary option, there has been a significant growth in parties considering Alternative Dispute Resolutions (ADR) such as Without Prejudice Discussions, Mediation, Arbitration and Adjudication.

So, what are these routes and how does each differ from litigation?

1. Without Prejudice Discussions 

Without Prejudice Discussions can take place ‘pre-action’ or after litigation has been issued. This method is typically the most economical approach to parties seeking a solution to the issues in dispute. 

Usually, parties can have various discussions to narrow the issues and resolve the dispute by way of written correspondence, telephone calls or face to face meetings, with or without legal representation. 

In order for Without Prejudice Discussions to be beneficial, it is advised that parties approach these discussions not to ‘win’ or have the ‘upper hand’, but to seek to resolve matters with compromise and commerciality in mind. 

2. Mediation

Mediation is one of the most commonly recognised and used forms of alternative dispute resolution. 

Mediation involves an independent third party (the Mediator) who seeks to assist both sides in coming to an agreement to resolve their dispute. They will ascertain the concerns in dispute and explore the possibility of a settlement.  

Mediation is usually confined to a set period of time (from a couple of hours to a full day). It starts with each party presenting a summary of their case to the Mediator, in the presence of the other party. The parties then retire to separate rooms and the Mediator travels between them, seeking to identify issues where agreement may be reached. The Mediator cannot impose a settlement on the parties, but settlements are usually agreed by the end of the process.

In order for the Mediation to be effective, it is advisable to consider this approach when parties have sufficient knowledge about the merits of claim, especially in cases where the stakes are high. Therefore, it is most common to undertake Mediation while a claim has been issued and parties seek a stay in the proceedings to undergo Mediation to attempt settlement. 

3. Adjudication

Adjudication is a dispute resolution process which offers a speedy mechanism for parties to resolve disputes. It provides a temporarily binding decision which must be complied with until overturned or varied by a court or arbitration.

It is a statutory right introduced into UK construction contracts by the Housing Grants, Construction and Regeneration Act 1996.

The purpose of Adjudication is to resolve disputes swiftly, usually 28 days of its referral, during the course of the contract to minimise delay on the work and protect the cash flow. 

Adjudication is an effective form of dispute resolutions but is fairly unique to the construction industry and therefore cannot be applied to all cases. 

4. Arbitration

Arbitration is a contract-based dispute resolution determined by a private tribunal of the parties’ choosing. Arbitration is established on party agreement (the Arbitration Agreement) and regulated and enforced by national law and national courts. 

The result of an Arbitration is usually an Arbitral Award, which is a final, binding and enforceable decision on the dispute submitted for determination. The pros and cons of Arbitration are:

• pro: the ability to choose a suitable arbitrator with the relevant technical knowledge
• pro: the award is private and therefore confidential
• con: although arbitration can be quicker and cheaper than litigation, the reality is often the opposite
• con: arbitration is not always suitable where there is a multi-party dispute

While contracts usually set out the official method for alternative dispute resolution, direct negotiations and/or mediation is the most common choice of ADR. Parties should consider resolution meetings to resolve a dispute as a commercial decision. This can be done prior to issuing legal proceedings or in parallel. 

ADRtechniques can be cost effective, flexible and are confidential. In order for ADR to be fruitful, parties should consider the strengths and weaknesses of their case and their opponent’s case in order to conclude matters.

It is therefore important to seek assistance from a legal advisor to determine the legal and factual issues which may lead to settlement.

For further advice, please contact Marina Akram, Commercial Litigation Solicitor at Silverback Law on 0844 967 2700 or marina.akram@silverbacklaw.co.uk. 

What makes Top Service Ltd different? 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences which can make a real difference between company profit and painful write-offs. 

Are you struggling to recover the money you are owed?

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.

National Insolvency figures published (16 March 2022) by the Government’s Insolvency Service have indicated that the number of registered company insolvencies in February 2022 was 1,515:

• More than double the number registered in the same month in the previous year (685 in February 2021), and
• 13% higher than the number registered two years previously (pre-pandemic; 1,346 in February 2020).

The report also states that in February 2022 there were 1,329 Creditors’ Voluntary Liquidations (CVLs), more than double the number in February 2021, and 40% higher than in February 2020. 

Temporary Insolvency Restriction Protections put in place to support businesses during the pandemic started to phase out from 1st October 2021. New targeted measures to support small business and commercial tenants will continue until March 2022 and include:

• Protect businesses from creditors insisting on repayment of relatively small debts by temporarily raising the current debt threshold for a winding up petition to £10,000 or more.
• Require creditors to seek proposals for payment from a debtor business, giving them 21 days for a response before they can proceed with winding up action.

Post Insolvency Debt Collection Service

We provide Insolvency Practitioners with a tailored end to end Post-Insolvency Debt Collection Service. We provide our service in collaboration with Silverback Commercial Law who offer competitive rates if legal action is required to recover monies owed. 

What we offer

• Free of Charge Ledger Consultation
• Collections Process with online access to live information on all cases
• Retention & Contract Collections
• Legal Action to Recover monies owed
• Dispute resolution

What makes us different?

• Our bespoke collection strategies mean that no case is treated the same. Our access to credit information and exclusive trading experiences enables us to change strategy quickly when our incoming intelligence is received, providing excellent results.
• Fast, effective collections. We know that speed is of the essence, so all collections are given top priority.  We don’t just go through the motions, our experienced and highly skilled team members are adept at tricky negotiations, dispute resolution, tracing absconded debtors and thinking outside of the box to achieve tangible results.
• Fully compliant.  We have been trading for 30 years and we have always taken compliance very seriously.  We are authorised by the FCA and Top Service Ltd is a corporate member of the Credit Services Association (CSA).  All senior Top Service staff are members of the Chartered Institute of Credit Management and collections professionals are hand-picked and trained to the highest standards. 
• We have more than 30 years of experience in collecting commercial and contract debts.

To discuss our Post Insolvency Collections Service with a member of our expert team please email insolvencycollections@top-service.co.uk.

Are you struggling to recover the money you are owed?

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

Insider Intelligence is our construction industry specific information that provides up to date, relevant, reliable information to enable more informed business decisions to be made when accepting an application for a trade credit account.

When mainstream agencies look at credit information they number crunch. They use the last set of accounts and any public record information to produce credit limits and scores. It’s a pretty good way to look at credit information but it can overlook information that a person notices, for instance:

• What has happened from the time the business filed their last set of accounts to the time the credit check is performed?

A business has nine months from its financial year end to file its accounts. Then there is a whole year trading plus nine months that is unaccounted for until the next set of accounts is filed. 

That is where industry specific trading experiences come into play. It’s these trading experiences that tell a potential supplier how the data subject is paying other suppliers right now. Which, when a business is looking at whether they are willing to risk extending credit facilities to another business is what they need to know to make an informed decision. What is the likelihood that they are going to be paid on time, late or not without a lot of time, effort and cost or even at all. 

The people and ears to the ground element of insider intelligence is spotting those things that just don’t look right or when trading experiences change. It’s the information that a computer, algorithm or any amount of number crunching will miss. For example, the 16 year old Director that following investigation turns out to be the son of someone with a bankruptcy order, potentially acting as a shadow Director.  It’s the Director our helpdesk team remembers from another business that traded fraudulently 10 years ago that Companies House haven’t been able to link.

Maybe it’s from generally paying suppliers but exceeding terms, to accounts now remaining overdue. It’s that information that our helpdesk team spots which leads them to look a little more in depth into a data subject and potentially pick up on an unadvertised winding up petition. Or another TS customer who has filed a petition today. Or something the business has told our debt recovery team that doesn’t add up that starts some extra investigations. 

“When considering whether or not to extend credit facilities, having information to help you calculate whether to expect to be paid on time, late or struggle to collect payment is vital. 

We urge our members and the wider construction industry to protect their businesses by  actively monitoring trading experiences and acting upon early warning signs.  Don’t wait for the information to come to you, use an industry specific service that can spot changes in payment patterns resulting in regular, more in-depth and up to date checks being carried out to pick up information quickly.

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

Top Service Ltd gives you access to this construction specific information. As well as information you would expect to see on a standard credit report,” Emma Miller Company Director, Top Service Ltd.

What makes Top Service Ltd different? 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences. Our insider intelligence can make a real difference between company profit and painful write-offs. 

Are you struggling to recover the money you are owed?

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.

A winding-up petition is the first step towards obtaining a winding-up order against a business that has substantial unpaid debt.  If a winding-up order is subsequently made, it will enter compulsory liquidation, cease trading and the conduct of its directors will be investigated.

What does it mean if one of your customers has a Winding Up Petition issued against it?

If one of your customers has had a winding up petition issued against it, it is because one of its creditors has decided to commence proceedings to recover monies owed to them.

A winding up petition is usually a sign that the customer is not paying its debts as they fall due and is usually implemented as a last resort, having already tried to reclaim monies via a statutory demand or other enforcement action. As such, it is not advisable to permit the customer to extend its liability with you until the winding-up petition has been dealt with by the Court.  

If I am owed money by a customer, can I issue a Winding-Up Petition against it?

You can issue a winding-up petition against a corporate customer (“the Debtor”) if:

• at present, there is a debt due of £10,000 or more; 
• the debt is undisputed;
• the debt is not due under a business tenancy; and 
• you have given the Debtor 21 days’ notice inviting the Debtor to make proposals for payment of the debt and the Debtor has either failed to make any proposals or not made proposals for payment to your satisfaction.

What is the process?

Once the petition has been issued, it will be sealed by the Court and listed for a hearing date, usually around 6 weeks’ time.  

Before the hearing of the petition, it has to be served on the Debtor.  It is advisable to use a process server to do this to ensure that service has taken place correctly.

Seven days after the sealed petition has been served on the Debtor it can be advertised in the London Gazette.  This allows other creditors of the Debtor to see the petition and gives them the opportunity of supporting it. 

Once a petition has been advertised, the Debtor’s bank will usually freeze its accounts.

If a winding-up order is made by the Court at the hearing of the petition the Debtor will be deemed to be in liquidation, the business of the Debtor will be automatically closed, the Official Receiver will be appointed as its liquidator and the Debtor’s assets will be realised.  Any realisations will be paid proportionally to the Debtor’s unsecured creditors, after the costs of the petition, the liquidator, the liquidation process and possibly the secured creditors have been paid.

What if another creditor has already presented a winding-up petition against the Debtor?

There should only be one winding-up petition issued against the Debtor at any time.  However, any creditor of the Debtor can support an existing winding-up petition and, if for any reason the petitioning creditor decides not to proceed with the petition, any other creditor or group of creditors who could have presented a petition can, with the Court’s approval, take over control of the issued petition.

If you require advice please contact Alison Beard, Head of Insolvency, Silverback Law, on 0844 967 2700 or alison.beard@silverbacklaw.co.uk.  

What makes Top Service Ltd different? 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences which can make a real difference between company profit and painful write-offs. 

Are you struggling to recover the money you are owed?

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.

National Insolvency figures published (15 Jan 2022) by the Government’s Insolvency Service have indicated that the number of registered company insolvencies in January 2022 was 1,560:

• More than double the number registered in the same month in the previous year (758 in January 2021), and
• Similar to the number registered two years previously (pre-pandemic; 1,508 in January 2020).

In January 2022 the report confirms there were ‘1,358 Creditors’ Voluntary Liquidations (CVLs), more than double the number in January 2021, and 34% higher than in January 2020. Numbers for other types of company insolvencies, such as compulsory liquidations, remained lower than before the pandemic, although there were more than twice as many compulsory liquidations as in January 2021.’ https://www.gov.uk/government/statistics/monthly-insolvency-statistics-january-2022/commentary-monthly-insolvency-statistics-january-2022

Temporary Insolvency Restriction Protections put in place to support businesses during the pandemic started to phase out from 1st October 2021. New targeted measures to support small business and commercial tenants will continue until March 2022 and include:

• Protect businesses from creditors insisting on repayment of relatively small debts by temporarily raising the current debt threshold for a winding up petition to £10,000 or more.
• Require creditors to seek proposals for payment from a debtor business, giving them 21 days for a response before they can proceed with winding up action.

Post Insolvency Debt Collection Service

We provide Insolvency Practitioners with a tailored end to end Post-Insolvency Debt Collection Service. We provide our service in collaboration with Silverback Commercial Law who offer competitive rates if legal action is required to recover monies owed. 

What we offer

• Free of Charge Ledger Consultation
• Collections Process with online access to live information on all cases
• Retention & Contract Collections
• Legal Action to Recover monies owed
• Dispute resolution

What makes us different?

• Our bespoke collection strategies mean that no case is treated the same. Our access to credit information and exclusive trading experiences enables us to change strategy quickly when our incoming intelligence is received, providing excellent results.
• Fast, effective collections. We know that speed is of the essence, so all collections are given top priority.  We don’t just go through the motions, our experienced and highly skilled team members are adept at tricky negotiations, dispute resolution, tracing absconded debtors and thinking outside of the box to achieve tangible results.
• Fully compliant.  We have been trading for 30 years and we have always taken compliance very seriously.  We are authorised by the FCA and Top Service Ltd is a corporate member of the Credit Services Association (CSA).  All senior Top Service staff are members of the Chartered Institute of Credit Management and collections professionals are hand-picked and trained to the highest standards. 
• We have more than 30 years of experience in collecting commercial and contract debts.

To discuss our Post Insolvency Collections Service with a member of our expert team please email insolvencycollections@top-service.co.uk.

Are you struggling to recover the money you are owed?

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

A phoenix operation is when a company is liquidated and the directors simply buy its assets cheaply, set up a new company, and continue to trade with the same or a similar name. Hiding previous failures from the public, it lets them leave creditors with nothing. As phoenix operations rise from the flames, it’s often their creditors that get burnt. 

Is this legal?

Phoenix companies can be legal, but there are strict regulations to comply with, specifically, Section 216 of the Insolvency Act 1986.  If this is not adhered to, those involved in the management of the phoenix company may be subject to criminal and/or civil sanctions and liabilities.

What does the law say?

When a company is placed into insolvent liquidation, Section 216 prohibits its directors from ‘involvement’ in another company with the same or similar name for five years, from the day insolvent liquidation begins. This may include existing companies/trading entities, including those that have been recently incorporated and/or commenced.  The law is designed to prevent directors hiding their old company’s failure from the public. Although they can legitimately buy old company assets, they must make it clear the new business is separate from the old one.

What is involvement and what’s a prohibited name? 

A person is considered to be involved in a phoenix company if they are: a director of a company known by a prohibited name; in any way contributing to the formation, promotion, or management of such a company, or in the carrying on of a business with a prohibited name. 

A prohibited name is one the insolvent company was known by at any time in the 12 months before it was placed into insolvent liquidation, or one so similar it suggests an association. This also applies to a company’s trading names and/or abbreviations associated with it. 

There are three statutory exceptions when an individual will not be deemed to have breached Section 216, which are:

• When (before a breach has occurred) directors who have been involved in the insolvent company give notice to its creditors that they are, or are to be, involved in a company that is acquiring the whole or substantially the whole of the insolvent company’s business from the liquidator (or administrator).
• When the directors make a successful application to court for permission to be involved in an entity using the prohibited name; or
• when the company with the prohibited name has been operating (and not dormant) for at least 12 months prior to the insolvent company going into liquidation.

Before any of these exceptions are relied on, it’s strongly advised that those involved ensure they receive legal advice. 

If a person acts in breach of Section 216, they may be subject to criminal and/or civil sanctions.

• Under criminal law, the individual is liable to imprisonment or a fine, or both if convicted.
• Under civil law the individual could be prosecuted for disqualification as a company director.
• Under civil law the individual is automatically jointly and severally liable with the new company and anyone else acting in breach of Section 216, for its ‘relevant debts’, even if it is a limited company or partnership. What constitutes ‘relevant debts’ will be fact dependant, but they will be those debts and liabilities incurred by the new company, while it’s known by the prohibited name.

Accordingly, a creditor of a new company using a prohibited name can bring a civil action directly against those individuals involved in its management.  They don’t need to pursue the company itself, although, if it is not in an insolvency process, it may be worth bringing an action against multiple defendants.

Phoenix companies can offer a solution for directors and creditors of failing companies. However, they’re often administered incorrectly, leaving creditors aggrieved, and individuals unaware of the personal liability they may be exposed to. If you are a creditor of what you believe is a phoenix company, particularly one that has subsequently been placed into an insolvency process, you may wish to seek advice on the options available to you and the potential parties that you can pursue for the recovery your debt.

If you require advice in relation to Section 216 of the Insolvency Act 1986, as a creditor or director of a phoenix company, please contact Alison Beard, Head of Insolvency, Silverback Law, on 0844 967 2700 or alison.beard@silverbacklaw.co.uk.  

“At Top Service Ltd as well as monitoring companies, members have the ability to monitor individual company directors.  Our director monitoring service will inform you if a director is appointed at another company or if they resign any of their directorships.

Keeping track of the individuals behind a company is often as important as monitoring the company itself.  As well as providing you with an up-to-date picture of a person’s business interests it may also alert you to potential ‘phoenix companies’. A ‘phoenix company’ is one which rises from the ashes of an insolvent company, and it usually :

• Has a similar name to the failed company.
• Carried out the same trade as the failed company.
• Trades from the same address as the failed company.
• Has the same directors as the failed company.

A phoenix company will typically be set up before the original company goes under. This is a common occurrence in the construction sector and is not illegal unless it can be proven that the directors deliberately defrauded creditors.” Emma Miller, Company Director Top Service Ltd 

What makes Top Service Ltd different? 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences which can make a real difference between company profit and painful write-offs. 

Are you struggling to recover the money you are owed?

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.

National Insolvency figures published (19 Jan 2022) by the Government’s Insolvency Service have indicated that the number of registered company insolvencies in December 2021 was 1,486:

• 20% higher than the number registered in the same month in the previous year (1,237 in December 2020), and
• 33% higher than the number registered two years previously

The published report also states that in ‘December 2021 there were 1,365 Creditors’ Voluntary Liquidations (CVLs), which is 37% higher than in December 2020, and 73% higher than in December 2019. Other types of company insolvencies, such as compulsory liquidations, remained lower than before the pandemic.’

https://www.gov.uk/government/statistics/monthly-insolvency-statistics-december-2021/commentary-monthly-insolvency-statistics-december-2021

Temporary Insolvency Restriction Protections put in place to support businesses during the pandemic started to phase out from 1st October 2021. New targeted measures to support small business and commercial tenants will continue until March 2022 and include:

1. Protect businesses from creditors insisting on repayment of relatively small debts by temporarily raising the current debt threshold for a winding up petition to £10,000 or more.
2. Require creditors to seek proposals for payment from a debtor business, giving them 21 days for a response before they can proceed with winding up action.

Post Insolvency Debt Collection Service

We provide Insolvency Practitioners with a tailored end to end Post-Insolvency Debt Collection Service. We provide our service in collaboration with Silverback Commercial Law who offer competitive rates if legal action is required to recover monies owed. 

What we offer

• Free of Charge Ledger Consultation
• Collections Process with online access to live information on all cases
• Retention & Contract Collections
• Legal Action to Recover monies owed
• Dispute resolution

What makes us different?

• Our bespoke collection strategies mean that no case is treated the same. Our access to credit information and exclusive trading experiences enables us to change strategy quickly when our incoming intelligence is received, providing excellent results.
• Fast, effective collections. We know that speed is of the essence, so all collections are given top priority.  We don’t just go through the motions, our experienced and highly skilled team members are adept at tricky negotiations, dispute resolution, tracing absconded debtors and thinking outside of the box to achieve tangible results.
• Fully compliant.  We have been trading for 30 years and we have always taken compliance very seriously.  We are authorised by the FCA and Top Service Ltd is a corporate member of the Credit Services Association (CSA).  All senior Top Service staff are members of the Chartered Institute of Credit Management and collections professionals are hand-picked and trained to the highest standards. 
• We have 30 years of experience in collecting commercial and contract debts.

To discuss our Post Insolvency Collections Service with a member of our expert team please email insolvencycollections@top-service.co.uk.

Are you struggling to recover the money you are owed?

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

A good invoicing system sends a professional message and helps define your business brand as one to trust. Formalising your demand for timely payment, the right invoicing process will keep your business organised and will be particularly useful should a customer fail to pay, leading to legal proceedings. 

An invoice is a record of the transaction between a buyer and a seller, so accuracy is crucial. When you sell a customer goods or services, and you’re both VAT registered, an invoice is a legal requirement. In other circumstances invoicing remains important as it provides written evidence of a transaction having taken place and, many customers simply won’t pay until an invoice is issued.  

What should a standard invoice include?

A standard (non-VAT) invoice should include:

·       The word ‘Invoice.’ The document should be easily recognised as an invoice, as opposed to a quote, credit note, advice note or receipt. An invoice is not the same as a receipt, which is proof of payment, not a request for payment. 

·       A unique invoice number that is also recorded in your files. 

·       Your full business name, address and contact details. Sole traders must provide their personal name and any business name, as well as an address where legal documents can be delivered if they’re using a business name. Limited companies must include the full company name as it appears on the Certificate of Incorporation (on Companies House), along with the company number. It is paramount, particularly when the customer is a limited company, that the customer name on the invoice matches the name on this certificate. These must be the same, down to the last letter, space, and character. If they differ, you are effectively (and in the eyes of the law) issuing invoices to an entirely different entity/or wrong party. This can be problematic if a customer fails to pay, and legal proceedings are set in motion. 

·       The full company name of the customer you’re invoicing, as it appears on the Companies House Certificate of Incorporation, or the full trading name if it’s not a limited company. The full address of the customer should also be included. 

·       A clear description of the transaction with goods or services itemised, line by line. 

·       The date that goods or services were supplied. This is not the same as the date of the invoice itself but is usually not more than 30 days beforehand. A VAT invoice must usually be within 30 days of supply or (advance) payment. 

·       The date the invoice was issued. As well as helping to identify the unique invoice, an invoice’s issue date defines credit duration and payment due dates, which is crucial for companies offering a credit facility. If you have agreed a payment date with customers, it must usually be within 30 days for public authorities or 60 days for business-to-business transactions. Where payment dates are not agreed or stipulated, the customer must pay within 30 days of getting your invoice or the goods or service.  In some instances, invoices can be rendered due on date of delivery of the goods or service. The date the invoice was issued will also let your customer know which tax year the invoice belongs to. Additionally, if a company is late paying an invoice, they may be liable for statutory interest charges. At time of writing, statutory interest on business-to-business transactions is at 8% above the Bank of England base rate. This is the rate you can charge interest on late payments unless you’ve included a different rate of interest in your terms and conditions of sale (contractual interest). 

·       The money outstanding and the payment terms, for example, 30 days from receipt of the invoice. The final amount should be clearly stated and, where it is helpful, you should provide a breakdown of unit costs, delivery charges etc. 

·       If your business is VAT registered, the invoice should include the VAT charged and the specific company VAT number. 

How do invoices affect credit accounts and personal guarantees? 

When creating an invoice, it’s important to consider how its terms will interact with other contractual documents set up between your business and the customer. For example, if goods or services are purchased on credit, the invoice should usually specify the terms that apply to the transaction and provide information on the duty of the parties accordingly. Or, if a company holds a personal guarantee for an individual who has been operating as a Sole Trader, but that person then registers as a Limited Company under a different name, the personal guarantee may stop providing protection.

A solid invoice template that has been carefully considered is a great starting point. Regularly reviewing this document and having a professional with legal expertise review your invoicing process is a wise choice. 

Whether you’re looking to improve your system and records, present your business more professionally, position yourself for better credit management, or protect yourself from avoidable future costs, invoicing is a key business focus. 

What makes Top Service Ltd different? 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences which can make a real difference between company profit and painful write-offs. 

Are you struggling to recover the money you are owed?

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.

National Insolvency figures published (17 December 2021) by the Government’s Insolvency Service have indicated that the number of registered company insolvencies in November 2021 was 1,674:

·       88% higher than the number registered in the same month in the previous year (891 in November 2020), and

·       11% higher than the number registered two years previously (pre-pandemic; 1,509 in November 2019).

The report also states that ‘for the first time since the start of the coronavirus (COVID-19) pandemic, the monthly number of registered company insolvencies was higher than pre-pandemic levels. This was driven by the higher number of creditors’ voluntary liquidations (CVLs).’

(Statistics published in https://www.gov.uk/government/statistics/monthly-insolvency-statistics-november-2021)

Temporary Insolvency Restriction Protections put in place to support businesses during the pandemic started to phase out from 1st October 2021. New targeted measures to support small business and commercial tenants will continue until March 2022 and include:

1. Protect businesses from creditors insisting on repayment of relatively small debts by temporarily raising the current debt threshold for a winding up petition to £10,000 or more.
2. Require creditors to seek proposals for payment from a debtor business, giving them 21 days for a response before they can proceed with winding up action.

“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. With the threshold for issuing a petition being increased we advise our members to look at their options for collection and take advice from their collections service provider on the best course of action.”  Emma Miller, Company Director Top Service Ltd

Post Insolvency Debt Collection Service

We provide Insolvency Practitioners with a tailored end to end Post-Insolvency Debt Collection Service. We provide our service in collaboration with Silverback Commercial Law who offer competitive rates if legal action is required to recover monies owed. 

What we offer

• Free of Charge Ledger Consultation
• Collections Process with online access to live information on all cases
• Retention & Contract Collections
• Legal Action to Recover monies owed
• Dispute resolution

What makes us different?

• Our bespoke collection strategies mean that no case is treated the same. Our access to credit information and exclusive trading experiences enables us to change strategy quickly when our incoming intelligence is received, providing excellent results.
• Fast, effective collections. We know that speed is of the essence, so all collections are given top priority.  We don’t just go through the motions, our experienced and highly skilled team members are adept at tricky negotiations, dispute resolution, tracing absconded debtors and thinking outside of the box to achieve tangible results.
• Fully compliant.  We have been trading for 30 years and we have always taken compliance very seriously.  We are authorised by the FCA and Top Service Ltd is a corporate member of the Credit Services Association (CSA).  All senior Top Service staff are members of the Chartered Institute of Credit Management and collections professionals are hand-picked and trained to the highest standards. 
• We have 30 years of experience in collecting commercial and contract debts.

To discuss our Post Insolvency Collections Service with a member of our expert team please email insolvencycollections@top-service.co.uk.

Are you struggling to recover the money you are owed?

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