Preferential payment?

mike54

I have a similar type of question - when we were about to move into our flat last year I had quite a bit of work done (decorating; kitchen; laminate flooring etc.) before we actually moved in. My boss was very understanding and told me to pay him when I could. (it was around £5-6k). In October I left the company (grass greener etc.) but gave him my word that I'd make the payments to him and I paid part in February and I've made arrangements to get him the rest of the money this week. I'm just a bit worried that the OR might see this as a preferential payment and I'll be in trouble over it. This has had me worried for quite some time now - just want to get the application started.

LizzieGoblin

Yep I think they will. Question is, how did/are you paying him the money? Cash, bank transfer? From what I have read, if it's obvious you passed a lot of money to someone in the last couple of years in your bank statements the OR will question it. Then it's up to you to explain.

I am not advocating any form of dishonesty but were you paying your boss to do the work or did they lend you money to get it done by someone else? If the former, why not say that to the OR and the fact there was a gap between work and payment doesn't NEED mentioning! You were paying someone to do something for you (as everyone does) not paying them back money. If the money was lent to you then I think it would be seen as PP.

mike54

Hi there, - thanks for the reply - the work was done by the company I was working for at the time. There was never any loan (I worked for a building company) - I didn't pay them at the time because it was a lot of money and the boss said it would be ok to pay it when I could - even in 'stages'. I've used our last bits of savings and money from credit cards to pay it and that's what I'm a bit concerned about.

LizzieGoblin

The rules are quite clear but whether the OR is bothered with your case enough to go through it with a fine toothed comb is down to the individual. You may not even get questioned about it, it depends on your case!

If you used your credit card to pay the company in the way a normal customer would I can't imagine the OR could get that back...? If you withdrew cash from your credit card and current account at the last minute that screams PP.

Do you have receipts? Are they dated?