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Legal Advice

Discussion in 'Accounting and Legal' started by Dan Jones, May 19, 2015.

  1. Dan Jones

    Dan Jones New Member

    Hi!

    I'm a freelance web developer and a couple of years ago I did some work on a project for a digital agency that I used to be employed by. They came to me because I worked on the project initially whilst employed by them, and they new I had the background to move it forward.

    The project had a number of issues, and the client felt that the agency let them down. Fast foward 2 years, and the agency have received a letter out of the blue telling them that they are being taken to court as the client feels the project wasn't delivered and it damaged their business. Something I disagree with - but that's not the issue.

    I'm just wondering if anyone could share advice on how liable I am and the course of action I should be thinking about? I never dealt with the client directly, but I figure if the agency get sued - they could just turn around and do the same to me?

    Thanks in advance!

    Dan
     
  2. Lupita

    Lupita Member

  3. poliosa

    poliosa New Member

    I don't want to start new Topic, because I have question regarding Late Payments too.

    What should I do when my client paid DEPOSIT for the project in March. Today is 5th and will probably pay this month balance (which will be new tax year).
    Should I take it as a 2015/2016 income or the balance payment for the project should be added to new tax year (2016/2017) ? A bit confused.... :(
     
  4. Lupita

    Lupita Member

  5. edw2016

    edw2016 New Member

    Hi Dan - it will be a case of waiting to see what happens. It's highly unlikely that you will be made liable, mainly because you completely the work for the client based on their specifications. If they do try and turn the blame on you, chances are that it will not work. Your client was in charge of the project and therefore is liable. I'm obviously not saying that they definitely can't take action against you, but if they do they probably won't have much of an argument. Like you say, you don't agree with the business' view on the matter, so there's a chance that their complaint will be thrown out.

    Hope it turns out okay!
     
  6. edw2016

    edw2016 New Member

    Hi poliosa,

    The deposit will come under 2015/16 and the rest of the payment comes under 2016/17. While it does seem a little strange to do that, it's the only way to calculate your taxable income properly. Otherwise, you could pay more/less tax in one year that you should be.

    Hope this helps!
     
  7. Mark Lyons

    Mark Lyons Member

    For these all problems I have only one solution which came to my mind on this time. To avoid these issues you have to know about Esignature. You should sign contract with the client before start working with him/her. So you can avoid frauds and work without any worries. When you have proof signed documents you can work smoothly.
     

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