Owed money....

[Zerax]

Where on a tax return form do you record bad debts?

In double entry terms, you'd debit 'Bad Debts' in your expenses and credit 'Receivables'. You'd still recognise the sale, but as far as profit is concerned it's offset by the bad debt. (I've ignored VAT in the above example)

 

[davesparks]

In double entry terms, you'd debit 'Bad Debts' in your expenses and credit 'Receivables'. You'd still recognise the sale, but as far as profit is concerned it's offset by the bad debt. (I've ignored VAT in the above example)

I never asked about accounting methods nor made any statement about such.
What I said was the income must be recorded on the OP's tax return for the year that it is earned.

 

[DanTheSpark89]

Hi,is the money owed,for labour only?

Yes it is unfortunately. We picked up materials together whenever I needed bits and he paid for those.

 

[Zerax]

I never asked about accounting methods nor made any statement about such.
What I said was the income must be recorded on the OP's tax return for the year that it is earned.

My bad DS... I was answering your question "Where on a tax return form do you record bad debts?"

 

[PEG]

Hi,so how did you get 6G behind,labour only?

I could have missed something,but either you went a long time,with no complaint,or a short while,with high expectations

 

[davesparks]

Yes it is unfortunately. We picked up materials together whenever I needed bits and he paid for those.

Well that's good that you aren't out of pocket for a load of materials.

But how on earth did you end up £6k down on labour only? That must have been a fair few weeks work and you'd surely walk away after the first week went unpaid?

 

[DanTheSpark89]

Well that's good that you aren't out of pocket for a load of materials.

But how on earth did you end up £6k down on labour only? That must have been a fair few weeks work and you'd surely walk away after the first week went unpaid?

I did around a months general work just helping out for him on a day rate

THEN I started a 6 bedroom rewire for him, including garage, outhouse etc, huge job. We agreed a cash price of £4500 for this, to be paid once job completed.

Because the job was agreed on a price, that is why so much debt has amounted. To be honest I clearly gave him far too much trust and left myself too exposed. He was 2 months into his business and I gave him too much flexibility with money. Lesson learnt.

Have heard from some solicitors that want £150p/h for a call to discuss the issue.. then god knows how much else to write letters etc... Am now considering my options. Just gave him an early morning call and surprise surprise... no answer.

 

[littlespark]

Solicitors usually give a free hours consultation, and give you prices for any further work. If it goes to court, you can claim your expenses back from him as well... but let’s say fees come in at £500 all in, you win the case and he pays you the 6k.... you have 5.5k you wouldn’t have had otherwise.

Try citizens advice. They have local solicitors that offer the free hour.

The trouble is, that if this is through his business, and he liquidates it, you could get SFA.
However, if it is a personal debt, HE is liable, not his business.

Collect any paperwork concerning the job, copies of any invoices you sent, and any texts or emails between you and have them to show the solicitor..

And I have to stress again.... DONT wait for lockdown to finish to get the ball rolling...

 

[Jurassic Sparks]

I would buy a dinosaur suit and a giant rubber sex toy and batter him senseless with it, in a public place
make sure you video it !
because it will be highly amusing, and the advertising revenue on you tube will more than cover the losses !

in the real world, you are not going to get anything, he sounds like a chancer, a shyster , a -------- artist, a ligger etc

write it down to experience, finish uni , and make money that way

I spent years chasing a so called mate over a bad debt, gave up in the end it was making me ill
Turned out he stiffed lots of other folk as well, when he died ( natural causes) we all went to the funeral, to make dead sure he had really snuffed it
then raced to the pub and helped ourselves to everything ( then got taxis home)

I have had a few people stiff me for money over the years, that taught me to do everything in writing, and to avoid certain people
my brother in law for instance is a drunk ( 3 driving bans) tried to get me involved in going halves on a property and renovating it and selling it
I thought about the possible profits for all of 3 seconds and told him
well I wont write on here because its a very old scrapmans insult
turned out afterwards, he owed money all over the place

Another bloke who stiffed me was so good at it that he could have been a consummate professional, and taught con artists for a living
I never got my dosh back from him either, but i had great fun over 15 years introducing myself to him , when he was trying to hook another mark in

 

[littlespark]

hey @Jurassic Sparks , you're not very good at choosing friends/ customers/ family members....

Damn annoying when it happens though.

Only one person hasn't paid me, so I took them to court and won. They still owe me, and i'll get it eventually... but their £300 debt is gonna cost them 3 times that.

I'm not going to let it be known that i'm a soft touch and doesn't chase debts, even for £300.

 

[drilltoaster]

I did around a months general work just helping out for him on a day rate

THEN I started a 6 bedroom rewire for him, including garage, outhouse etc, huge job. We agreed a cash price of £4500 for this, to be paid once job completed.

Because the job was agreed on a price, that is why so much debt has amounted. To be honest I clearly gave him far too much trust and left myself too exposed. He was 2 months into his business and I gave him too much flexibility with money. Lesson learnt.

Have heard from some solicitors that want £150p/h for a call to discuss the issue.. then god knows how much else to write letters etc... Am now considering my options. Just gave him an early morning call and surprise surprise... no answer.

I have used (Thomas Higgins) online correspondence before it which gives him 14 days to respond to them why he hasn't paid. After 14 days they will send you a email to press take to court action. Which will happen the very next day and always use high court recovery. It worked for me I ended up giving a reformed company their first ccj after having threats from their md and they now have been wound up. I got my money the day of court and they had to pay extra for the high court recovery aswell.

 

[Jurassic Sparks]

hey @Jurassic Sparks , you're not very good at choosing friends/ customers/ family members....

Damn annoying when it happens though.

Only one person hasn't paid me, so I took them to court and won. They still owe me, and i'll get it eventually... but their £300 debt is gonna cost them 3 times that.

I'm not going to let it be known that i'm a soft touch and doesn't chase debts, even for £300.

you cant choose your family !!!
I have very few close friends, but they are a good team
we do man stuff together for a laugh
and to raise money for charity
but over many years you will meet people like that
The trick is to see the funny side, or catch them much later
Maurice the last one, had a very unpleasant meeting with two large police sergeants, after I noticed his car parked up in Stroud, in the station car park, with a double barrelled shotgun in the back on view and not covered !
there were a few problems with his car as well, a meeting without coffee up the nick followed with free accommodation and a court appearance

 

[PEG]

Anywho.....back to the OP's problem...so,you did the first month on a day rate,and didn't get squared,you then took on another job,did a month or two more,and got nothing more at any stage.

You are not going to get paid. There is a faint hope,he may give you something eventually,but it will be down to the association,time spell,embarrassment,and it will be a pittance and once.

Meanwhile,your ex-employer,will be trying the same crack,with anyone who bites..

Take it as an expensive lesson,but one that could save you fortunes,in the future.