Non Payment for goods supplied

poo poo

Hi

I set up a small business a few years ago which was ticking along poorly enough up until this year, since then it has exploded, and im intending to set up a limited company for it but have not started the process yet, so im not yet vat registered.

My issue is I was contacted by a shop similar to mine from the uk, the shop is real, in business and im pretty sure its doing ok, they asked me for supplies totaling 10k, from a supplier I use, but they dont.

I sent over first delivery of about 2k and got paid no problem, although payment was a little slow, it seemed legit enough.

The rest of the order was sent and since then I have had very little communication from the buyer.

E-mails are replied to rarely, and when they are, they say they will sort me out, but corona etc is making it difficult to do business which is understandable.

I have been exceptionally patient, offered a payment plan, offered to receive some goods back etc, but every email is now met with silence.

As im not a registered business yet, I am reluctant to go down the legal route, im wondering what the best way to approach this is now. Do I say ill take further action - sell the debt to a drug gang in england and let him deal with it (joke) (kinda) use an debt collection agency? I dont know how to get this money now and I cannot afford to lose 8k.

Any advice appreciated.

Sheriff?

poo poo

Would that sort of action not need me to produce a tax invoice?

I couldnt say. Are you not tax compliant?

silent_spark

You don't need a limited company to be VAT registered. You don't even need to register unless you've reached the threshold.

Del2005

From watching too much TV, the Bailiffs are coming, you can get a county court judgement against the other shop and if they still don't pay then you pay the bailiffs to get your money back.

https://www.gov.uk/make-court-claim-for-money/enforce-a-judgment

vandriver

Why couldn't they have set up an account with your supplier?

Peregrinus

poo poo wrote: »

Hi

I set up a small business a few years ago which was ticking along poorly enough up until this year, since then it has exploded, and im intending to set up a limited company for it but have not started the process yet, so im not yet vat registere . . .

As others have pointed out, setting up a limited company and keeping your tax affairs in order are unrelated matters. You don't have to put off the second until you have done the first and, as you're now discovering, not being tax-compliant can be a very false economy.

If your business has only recently reached the turnover threshhold that would require you to register for VAT, it may not be too late to remedy the situation. Go and talk to an accountant now about what you need to go to regularise your situation, and whether you can do it in a way that will enable you to seek a court judgement against your debtors, because that's pretty much the only way you're ever going to get anything out of this shower. Do not waste time faffing about on the internet asking anonymous strangers for unreliable advice; the faster you move on this, the more likely you are to recover at least some of what is owed to you.