I know I have asked this question before about taking deposits when self employed and bankrupt.
I was told that I would not be able to take deposits unless I told them that I was bankrupt, which I do not really want to do because it might put them off.
The problem is that some clients insist on sending me a deposit and sometimes even send me the whole amount before the show. What should I do in this instance?
I cannot fully understand the problem here because I always turn up for shows and it's not as if I am taking credit of any sort. They are just paying for a service that I will be providing.
Just because I am bankrupt does not mean I will run off with clients money. I wouldn't be in business for very long otherwise.
Unfortunately not everyone is as honest and above board, and the general rule for all bankrupts is that they cannot obtain credit of £500 or more without disclosing his status. Section 360(2) states that this includes 'where he is paid in advance (whether in money or otherwise) for the supply of goods or services.
As long as you are not accepting more than £500 as deposits it should be fine.
So does this if someone pays me £10 deposit for a show in advance will I have to tell them that I am bankrupt.
Some of these clients have seen me before or they are referals so they know who I am. If told them I was Bankrupt, although I am an honest person you know the way people would think and I could lose work through this.
Hi surely a simple way out would be to make it clear to clients that it is now no longer your policy to take any payment, deposit or otherwise, until the time of the performance. If they trust you with their money then hopefully they would trust you to meet your commitments therefore a deposit or payment in advance is not necessary. This way you would not need to declare your BR to anyone.
As Suzanne says I am not asking for more than £500 so I should be OK.
I ask for deposits because over the years some people thought it was easy to just cancel the booking. Since taking small deposits I have had less cancellations. I also think clients feel that the booking is more secure when they pay a deposit. As I said some client insist that they send me a deposit and even pay my in full in advance without me even asking.
deposits when self employed
Posted - 13 August 2008 : 11:41:28
