LL
London Lite
Founding member
Obaigbena’s #AriseTV, London shut over £3m debthttps://t.co/zb1KYB8lEx#debt #unpaid #news pic.twitter.com/6YPWeO6fKu
— arisedoesntpay (@arisedoesntpay) January 20, 2016
ST
As of 12.30 Wednesday afternoon (January 20th) Arise News in still broadcasting on Sky. Currently Arise News Now is on, seemingly live with current stories.
NY
It was inevitable. I am surprised that it took this long after they had to move out of their first studios.
Obaigbena’s #AriseTV, London shut over £3m debthttps://t.co/zb1KYB8lEx#debt #unpaid #news pic.twitter.com/6YPWeO6fKu
— arisedoesntpay (@arisedoesntpay) January 20, 2016
It was inevitable. I am surprised that it took this long after they had to move out of their first studios.
NY
It's about that "vanity project" that the owner wanted to do.
I wonder who's brave/daft enough to work for them? Surely the company's reputation precedes them.
It's about that "vanity project" that the owner wanted to do.
GL
Probably more of an act of desperation from the freelancers. It's a tough market and it seems like they were getting a promise of £250 cash-in-hand on-the-day if they agreed to shifts. Naturally that is a completely unsustainable model but won't stop freelancers taking the odd shift - especially in January.
NG
There are quite a lot of people who are owed significant sums - including people who have paid tax on the money they have yet to be paid, or who have paid large amounts out in transport (ARISE would cover late night/early morning stuff but you booked it yourself and claimed it back).
AIUI the management who are booking them have been incredibly manipulative in suggesting that they are far less likely to be paid what they are owed if they don't continue to work for them.
For some people the channel was a way of filling the odd gap in their work - and wasn't a major revenue stream. For others it was a full-time job. And they have lost thousands.
noggin
Founding member
I wonder who's brave/daft enough to work for them? Surely the company's reputation precedes them.
There are quite a lot of people who are owed significant sums - including people who have paid tax on the money they have yet to be paid, or who have paid large amounts out in transport (ARISE would cover late night/early morning stuff but you booked it yourself and claimed it back).
AIUI the management who are booking them have been incredibly manipulative in suggesting that they are far less likely to be paid what they are owed if they don't continue to work for them.
For some people the channel was a way of filling the odd gap in their work - and wasn't a major revenue stream. For others it was a full-time job. And they have lost thousands.
MA
There are quite a lot of people who are owed significant sums - including people who have paid tax on the money they have yet to be paid,
How has that arisen ? I don't know about Sole Trader arrangements, I'm a one man VAT registered limited company, and I only pay taxes and pay back VAT against real 'in the bank' revenue and profits ?
I wonder who's brave/daft enough to work for them? Surely the company's reputation precedes them.
There are quite a lot of people who are owed significant sums - including people who have paid tax on the money they have yet to be paid,
How has that arisen ? I don't know about Sole Trader arrangements, I'm a one man VAT registered limited company, and I only pay taxes and pay back VAT against real 'in the bank' revenue and profits ?
MI
There are quite a lot of people who are owed significant sums - including people who have paid tax on the money they have yet to be paid,
How has that arisen ? I don't know about Sole Trader arrangements, I'm a one man VAT registered limited company, and I only pay taxes and pay back VAT against real 'in the bank' revenue and profits ?
In general over a certain turnover limit HMRC will expect you to prepare accounts on a matching basis - so revenues and expenditure are matched together and recognised when they are due not when they are paid.
That said in this situation you would expect the debts to either be written off (doesn't prevent recovering them later) or specifically providing for them - both of which means for income or corporation tax purposes they won't be taxable.
The VAT side of things I believe is different and timings shorter so they may have had to "pay" the VAT over. They will be able to reclaim it back in a later return. I can't however recall the exact details of bad debt write offs for VAT.
I wonder who's brave/daft enough to work for them? Surely the company's reputation precedes them.
There are quite a lot of people who are owed significant sums - including people who have paid tax on the money they have yet to be paid,
How has that arisen ? I don't know about Sole Trader arrangements, I'm a one man VAT registered limited company, and I only pay taxes and pay back VAT against real 'in the bank' revenue and profits ?
In general over a certain turnover limit HMRC will expect you to prepare accounts on a matching basis - so revenues and expenditure are matched together and recognised when they are due not when they are paid.
That said in this situation you would expect the debts to either be written off (doesn't prevent recovering them later) or specifically providing for them - both of which means for income or corporation tax purposes they won't be taxable.
The VAT side of things I believe is different and timings shorter so they may have had to "pay" the VAT over. They will be able to reclaim it back in a later return. I can't however recall the exact details of bad debt write offs for VAT.
MA
There are quite a lot of people who are owed significant sums - including people who have paid tax on the money they have yet to be paid,
How has that arisen ? I don't know about Sole Trader arrangements, I'm a one man VAT registered limited company, and I only pay taxes and pay back VAT against real 'in the bank' revenue and profits ?
In general over a certain turnover limit HMRC will expect you to prepare accounts on a matching basis - so revenues and expenditure are matched together and recognised when they are due not when they are paid.
That said in this situation you would expect the debts to either be written off (doesn't prevent recovering them later) or specifically providing for them - both of which means for income or corporation tax purposes they won't be taxable.
The VAT side of things I believe is different and timings shorter so they may have had to "pay" the VAT over. They will be able to reclaim it back in a later return. I can't however recall the exact details of bad debt write offs for VAT.
Interesting. I did some work for a company last year, who went into receivership before paying all of my invoices.
My accountant recorded the unpaid invoices as bad debts on my year end accounts, and therefore they are not lodged as revenue, (hopefully
) I've sent the receivers (at their request) copies of unpaid invoices, I doubt very much I'll get my money, or anything
There are quite a lot of people who are owed significant sums - including people who have paid tax on the money they have yet to be paid,
How has that arisen ? I don't know about Sole Trader arrangements, I'm a one man VAT registered limited company, and I only pay taxes and pay back VAT against real 'in the bank' revenue and profits ?
In general over a certain turnover limit HMRC will expect you to prepare accounts on a matching basis - so revenues and expenditure are matched together and recognised when they are due not when they are paid.
That said in this situation you would expect the debts to either be written off (doesn't prevent recovering them later) or specifically providing for them - both of which means for income or corporation tax purposes they won't be taxable.
The VAT side of things I believe is different and timings shorter so they may have had to "pay" the VAT over. They will be able to reclaim it back in a later return. I can't however recall the exact details of bad debt write offs for VAT.
Interesting. I did some work for a company last year, who went into receivership before paying all of my invoices.
My accountant recorded the unpaid invoices as bad debts on my year end accounts, and therefore they are not lodged as revenue, (hopefully
) I've sent the receivers (at their request) copies of unpaid invoices, I doubt very much I'll get my money, or anything
Last edited by Markymark on 20 January 2016 9:34pm
NG
There are quite a lot of people who are owed significant sums - including people who have paid tax on the money they have yet to be paid,
How has that arisen ? I don't know about Sole Trader arrangements, I'm a one man VAT registered limited company, and I only pay taxes and pay back VAT against real 'in the bank' revenue and profits ?
In general over a certain turnover limit HMRC will expect you to prepare accounts on a matching basis - so revenues and expenditure are matched together and recognised when they are due not when they are paid.
That said in this situation you would expect the debts to either be written off (doesn't prevent recovering them later) or specifically providing for them - both of which means for income or corporation tax purposes they won't be taxable.
The VAT side of things I believe is different and timings shorter so they may have had to "pay" the VAT over. They will be able to reclaim it back in a later return. I can't however recall the exact details of bad debt write offs for VAT.
Yes - I think that covers it. Hopefully the people involved can write off their losses, but the sums involved for some are significant, and even if they can recover them, it's quite a large cash-flow issue (particularly if you also haven't been paid)
noggin
Founding member
There are quite a lot of people who are owed significant sums - including people who have paid tax on the money they have yet to be paid,
How has that arisen ? I don't know about Sole Trader arrangements, I'm a one man VAT registered limited company, and I only pay taxes and pay back VAT against real 'in the bank' revenue and profits ?
In general over a certain turnover limit HMRC will expect you to prepare accounts on a matching basis - so revenues and expenditure are matched together and recognised when they are due not when they are paid.
That said in this situation you would expect the debts to either be written off (doesn't prevent recovering them later) or specifically providing for them - both of which means for income or corporation tax purposes they won't be taxable.
The VAT side of things I believe is different and timings shorter so they may have had to "pay" the VAT over. They will be able to reclaim it back in a later return. I can't however recall the exact details of bad debt write offs for VAT.
Yes - I think that covers it. Hopefully the people involved can write off their losses, but the sums involved for some are significant, and even if they can recover them, it's quite a large cash-flow issue (particularly if you also haven't been paid)