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Schools scam on IT purchases


TopCat®
Resolved

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leaves this school owing thousands of pounds for their greatly overpriced computers. The supplying company concerned conveniently, in my opinion, goes into administration. Another stark reminder for those placed in charge of expenditure to check and double check the small print before signing any contracts. What's your opinion? TC. story here

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lotvic

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What horrifies me is that the sole Company Director, according to http://company-director-check.co.uk/director/915768589 has 7 company director appointments.

6 of which are at the same address

"DIRECT TECHNOLOGY SOLUTIONS CORPORATE LIMITED Active

DIRECT TECHNOLOGY SUPPLIES LIMITED Active

DIRECT TECHNOLOGY TELECOMMUNICATIONS LIMITED Active

DIRECT TECHNOLOGY AUDIOVISUAL LIMITED Active

EPOS SOLUTIONS LIMITED Active

DIRECT TECHNOLOGY SOLUTIONS LIMITED In Administration

KEVIN O'SHEA ENTERPRISES LIMITED Dissolved"

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interzone55

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This happens far too often.

I've no idea how one goes about registering a company, so maybe someone can enlighten me about why it's so easy for a single person to set up so many companies with the same director(s) at the same address.

Additionally, can anyone think of a legitimate reason why someone would need to do this.

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Blackhat

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Alan 14.

Registering a limited company is as simple as detailing the relevant info with Companies House and can be done within a few hours. There is no limit that I know of regarding how many at the same address. I have 3 Ltd companies at the one address, each manufacturing different products but all under the same roof.

Google search for registering a company. search results

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interzone55

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Blackhat

Thanks, I thought there'd be more to it than filling in a form, especially as a company is a legal entity.

When I worked at Time Computers (escaped just before the implosion) there were 27 companies under the Granville Technologies umbrella, and only 11 were liquidated when they initially went bust. It didn't strike me as 100% honest when they crawled out of the ashes within weeks and set up business again under a very slightly different banner.

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Woolwell

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Setting up a limited company is remarkably easy as I found out a few years ago. Submitting the returns is more onerous and the taxman starts to take an interest.

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TopCat®

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It seems the extent of the mis-selling goes much further than first reported. Caveat emptor in abundance here TC.

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Terry Brown

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Maybe I am wrong

If I set up 5 companies and 3 of them make a (taxable) profit and the other two make a loss, I end up paying very little or no tax.

It is very easy to ensure a company make a loss, not so easy to make a profit.

is this correct.

Terry

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Woolwell

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Terry - Each company is treated separately for tax 9losses in one are not offset against profits in another). However the position of the director/shareholders/owner is different. They would hope to get a dividend and perhaps be paid from the profitable companies but lose out from the loss making ones but they could be liable for the losses.

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Condom

Likes # 1

I have set up several companies mainly for friends as they thought it was cheaper getting me to do it for them than going to Lawyers. It is relatively easy to do and aslo relatively cheap. However I don't think easiness or cheapness is part of the argument here as we are talking big money.

What I find more alarming is that inexperienced people were conned into entering these agreements thinking they were getting something for nothing and no doubt they then went on to earn good bonuses from their employers for finding such a big revenue saving scheme. Now it has come home to roost and some who thought they were the bees knees will no doubt be soon shown the door.

I am not surprised that schools have been targeted and I am also aware of many GP surgeries who have fallen foul of the same schemes or similar ones previously that involved phones and small switchboards.

The fragmentation of our NHS into many self controlled entities will also provide a future bonanza for such unscrupulous schemes as they will not be able to afford the necessary staff to police all purchases properly.

The best way to stop these sort of things is for very strong punishments but white collar crime is seldom treated as harshly as people who steal two left shoes so it is so easy to stash your proceeds away while you serve your 3 months.

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HondaMan

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I may be missing something, but surely if you are going to buy a computer, you do a bit of market research first, even if it is only to visit the likes of Comet and Curry's and take a quick look on the internet to check prices. Paying 10 times the price of something is just stupid and shows an incredible lack of sense. Mind you, they do say a fool and his money are soon parted!

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