Employer not paying expenses?

LilElvis

RBizz wrote: »

Definitely not a cashflow problem, husband is in the leadership team so has a good view on whats coming in and out I wish it was that simple so there was a least a reason, but at the moment its the non information making him and then in turn me worry a bit!

He knows for sure that payments have been made monthly to HMRC for payroll taxes, that VAT liability has been paid, that rent is up to date, that creditors aren't falling into 90 days and beyond? I've never heard of a "successful" company denying payment to only one type of creditor and with no good reason. As an accountant in a previous life I have come across many company directors who are extremely creative and adept at pulling the wool over people's eyes - banks, staff, creditors - until the whole house of cards comes crashing down. It smells decidedly fishy.

Mistral001

Perhaps one for the relationship sub forum as the problem is getting the OP's husband to take the problem seriously enough as obviously he is not doing so.

RBizz

LilElvis wrote: »

He knows for sure that payments have been made monthly to HMRC for payroll taxes, that VAT liability has been paid, that rent is up to date, that creditors aren't falling into 90 days and beyond? I've never heard of a "successful" company denying payment to only one type of creditor and with no good reason. As an accountant in a previous life I have come across many company directors who are extremely creative and adept at pulling the wool over people's eyes - banks, staff, creditors - until the whole house of cards comes crashing down. It smells decidedly fishy.

Yes as he handles their compliance and corporate risk, so he is the one who has managed the payment of issues they had with HMRC a year or so ago.

The accounts team is incompetant (I myself have done contract work for them and it took over 3 months to get paid!) and the owner feels that the head of accounts is some oracle who shouldn't be told off as she might leave etc. its a an odd culture - I just wanted to know legally, if there was anything my husband could do which there doesn't seem to be

ACG

Difficult one as it is his employer, but he needs to send a letter before action to his employer.

This needs to give a brief overview of the situation, what is being claimed and that you expect it to be paid within say 14 days or you will be filing it with small claims court.

Go to court and a judge will decide based on evidence and the balance of probabilities. I would say your husband taking the statements and showing the transactions and also emails asking for payments with nobody disputing them would be enough to win (but what do I know). However, you then have to weigh up how much of a problem this will be taking your employer who is also your direct line manager to court.

Blatchford

I'd just observe that lots of money was going in and out of Thomas Cook the day before they went under. They also owed a lot of money to people. And I recall lots of the leadership team thinking it'd be fine....

I repeat, what kind of boss threatens the person they owe lots of money to, and why would they, if they have the money. Cut a cheque and leave the oracle guy to sort it out.

getmore4less

Blatchford wrote: »

I'd just observe that lots of money was going in and out of Thomas Cook the day before they went under. They also owed a lot of money to people. And I recall lots of the leadership team thinking it'd be fine....

I repeat, what kind of boss threatens the person they owe lots of money to, and why would they, if they have the money. Cut a cheque and leave the oracle guy to sort it out.

IF that person owed money is a revenue creator why would you cut that off.

Next revenue generation activity call the shots.

If they cover compliance how big has this expenses liability on the books got if they are not paying anyone's for 6 months

If senior and think they are important they are messing up.

Cash advance for the next expense.

kazzah

appallingly bad management from ANY employer/employee
I am the chairman of a very small Charity and myself and another trustee have a Charity credit card - there is NO reason for any employee to be subsidising this BUSINESS to the tune of tens of thousands of pounds - which he clearly claims to be doing.
It is poor practice to not have a company credit card in place for our of pocket expenses and I for one would not be willing to use my own for anybody elses convenience