Carillion Saga…

Paula Veysey Smith • 29 January 2018

The saga of Carillion continues with the news only this morning showing that payments into the company pension fund were missed as its troubles grew though dividend payments to shareholders and bosses bonuses continued. All the signs were there that Carillion was a bad debt waiting to happen and many of the companies now caught up in its collapse may be wondering why they didn’t act earlier to recover their funds. What can you do when you are seriously looking down the barrel of a bad debt to ensure the bullet doesn’t hit you squarely between the eyes?

1. Assess the situation carefully. Is the non-payment due to poor administration or the company going it administration? The more you build a relationship with your client which we talked about in the last blog the more likely you are to be able to gauge the reason for non-payment.
2. Ensure that you keep a full set of notes when you begin credit chasing in earnest. Most modern software packages will enable you to do this and it gives a concise record of the communication you’ve had with the client and the actions you have taken. It is valuable information when you are negotiating with the client as you can give exact details of the exchanges you’ve had with the company and will also be important if you decide to go to court to reclaim your debt.
3. I’m going to mention using legal measures to reclaim your debt at this point. I have used Money Claim Online (MCOL) which is effectively going through the small claims court to issue proceedings when a debt is overdue. The online service, MCOL, is very efficient and cost effective. However, my experience is that if you get to this point the debt is almost certain lost but you may be able to gain the satisfaction of being able to enforce a County Court Judgement (CCJ) against the debtor. You also could use solicitors at this point who may be able to induce your debtor to pay with the use of legal letters but again, my opinion, is it is much better to work out your dispute in relationship with your client rather than using the force of the law, which unfortunately can be a path into nothing.
4. My last two points are around what YOU can do rather than going legal. Through negotiation there is much you can achieve so go and “do deals”. My understanding is that the Carillion unsecured creditors will be lucky to receive 1p in the £1 of debt they have. In many situations there just isn’t enough funds in the company for any pay out to an unsecured creditor. I have helped many of my clients reclaim the vast majority of their debt by offering payment terms of a certain amount per month or giving inducements so that if an amount is paid immediately then the rest will be credited off – you will certainly get more than a penny in the pound by doing this.
5. There’s nothing quite like nagging – it’s the dripping tap syndrome that can ultimately work. Just keep contacting the customer until finally they just give in and make sure your payment is one that happens. In fact one of my favourite exchanges with a client’s customer occurred due to this strategy. I knew that the customer was in trouble and that I only had a small amount of time to secure the funds; we had always had a good relationship and I made it my mission to call him twice a week as he promised payment though none arrived. In the end I made him an offer he couldn’t refuse, having a bit of a sweet tooth, and promised to send him his favourite confectionery if he actually sent the payment. If worked, the cheque came through and was honoured and I duly despatched a number of Walnut Whips to him. Yes, this story is a bit flippant but shows what you can achieve if you are bold enough to be creative!

If any of the points raised in the last two articles has struck a chord please do get in touch with us as we have years of experience with credit control. Your business is too important to let it fail due to a bad debt and professional assistance from the start can help to protect you against this.

Paula

M is for Measurable

by Paula Veysey-Smith • 31 May 2026
You've made your goal specific. Now how do you know you're actually getting there? The answer is in the M. "The more you can define your goals, the more likely you are to achieve them." Last time we looked at S for Specific — turning vague wishes like "I want to get fit" into something concrete and actionable. If you missed it, go back and start there, because everything builds on that foundation.  Now we move to M for Measurable. And this one is just as important, because a goal without a measure is still just a wish.

S is for Specific

by Paula Veysey-Smith • 3 May 2026
Your New Year’s resolutions haven’t failed, they just need a sharper edge. Here's how one simple shift can change everything. “We make New Year's resolutions — let's call them goals. But they can be a bit vague. The way to make them happen is to actually define them better.” It's that time of year when those bold January intentions have quietly faded into the background. "Get fit." "Lose weight." "Grow my business." Sound familiar? You're not alone — and more importantly, you haven't failed. Your resolutions just need a better framework.

MTD for Income Tax Is Here: What It Means for You

by Paula Veysey-Smith • 13 April 2026
HMRC’s new system Making Tax Digital for Income Tax Self-Assessment has now arrived! This isn’t just a regulatory update. It’s a shift in how your records are kept, how often you report, and what you will need to do throughout the year. What’s changing for you: Under MTD for Income Tax, if you’re a sole trader or landlord within scope: You’ll need to keep digital records Quarterly updates will need to be digitally submitted to HMRC An End of Period Statement (EOPS) will need to filed A Final Declaration will be needed to finalise your tax position for the year In short: instead of one annual deadline, your tax reporting becomes a year-round process. Why using compliant bookkeeping software is now essential? To meet MTD requirements, HMRC requires fully digital record keeping and submissions . Manual spreadsheets alone are no longer sufficient You’ll need to use MTD-compliant bookkeeping software Sending your accountant paper records or incomplete information will cause delays The upside (it’s not just compliance) While MTD is mandatory, it also brings real benefits: Clear visibility of your tax position throughout the year Better cash flow planning Fewer surprises at year-end What support do you need to navigate this new system? The support of qualified accounting professionals is now more necessary than ever. We don’t expect you to navigate this alone and here’s how MPower Accounting can ensure that you not only comply with, but thrive under, this new reporting requirement. We’ll help you choose and set up the right software We work with trusted platforms such as Xero, QuickBooks, FreeAgent and others. We’ll recommend what fits your business best and get everything set up correctly. We’ll ensure you stay compliant Review your records regularly Submit your quarterly updates accurately and on time Handle all year-end submissions We’ll take the stress off your shoulders With the right system in place: Your records stay up to date automatically We can spot issues early You avoid last-minute pressure and surprises All we’ll need from you to make MTD work smoothly, is access to your chosen bookkeeping software, regular uploaded receipts so we can keep records current and a little of your time when there are questions. The more up-to-date your records are, the more value and proactive advice, we can provide. Your role is simple but important. Letting us take the strain of compliance will save you time and cause significantly less stress, enabling you to focus on what is important, that is running your business successfully. Next steps If you haven’t already: Speak to us about getting set up on MTD-compliant software Let us review your current bookkeeping process Make sure you’re ready for quarterly reporting

Why Cheap, Outsourced Bookkeeping Could Cost Your Business More

by Paula Veysey-Smith • 24 March 2026
When choosing an accountant, it’s natural to be drawn to lower fees. However, if your accountant outsources bookkeeping, especially overseas, it can lead to hidden risks, poorer service and long-term costs for your business. Here’s what you need to consider: Service Quality May Be Lower Higher risk of errors, misclassified transactions, and inaccurate reports Bookkeeping completed less regularly, usually only at key deadlines, eg, VAT quarter No dedicated bookkeeper which can be contacted Less Ongoing Support Little to no ongoing support from UK based accountant Less control and oversight from your accountant Slow response to queries and issues taking longer to resolve Cheap Fees Can Lead to Higher Costs You may pay more later to fix errors or redo work Risk of fines or penalties due to late or incorrect filings Your time being wasted with identifying errors and chasing a response Impact on Your Business Inaccurate financial data makes it harder to make confident decisions Delays can affect cash flow planning and reporting deadlines Frustration and lack of trust in your financial information and accountant What to Look For Instead Accountants who have UK based in house bookkeepers Clear communication and quick response times Consistent, reliable handling of your financial records Continued support and advice through the whole year Key Takeaway The cheapest option isn’t always the best value Investing in quality bookkeeping saves time, reduces risk, and gives you peace of mind The MPower team is proudly based in the UK, with every member carefully selected for their expertise and experience. Our role goes beyond simply completing bookkeeping tasks—we provide valuable insights and practical suggestions based on your financial data. We believe in building strong, partner-like relationships with our clients. That means we’re here for you all year round, whether you have a quick query or need deeper insight from your numbers to support better business decisions. We have welcomed many new clients to our portfolio who, initially enticed by the cheaper rate, have become disillusioned and disappointed with their existing out-sourcing accountants. Understanding that cheap is not the best option, they have thrived with the support and availability our team provide. Choosing the right accountant is about more than price, it’s about ensuring your business has accurate, timely financial information you can depend on and the support of an accountant who is readily available, at any time of the year. This is the service that MPower strives to provide, to any and every client!
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