We link to the original sources below. Sections labelled “Sandycroft analysis” contain our interpretation and practical suggestions. Product and service links are commercial suggestions from Sandycroft, separate from the source reporting.
SOURCED NEWS SUMMARY
The news
The Insolvency Service reported on 26 October that Royal Lofts & Extensions Ltd was wound up in the public interest by the High Court on 20 October. Its investigation followed complaints about unfinished building work and payments for goods that were not supplied. The report also said invoices directed customer payments into the sole director’s personal bank account and that investigators could not establish how those payments had been recorded.
The government report said no accounting records were provided, around £224,596 had been received into the account and a similar amount withdrawn, leaving a nil balance. It also said investigators found no known valid insurance for June to September 2024 despite assurances given to customers. These are findings reported about one company; they are not evidence that other builders or trades operate in the same way.
SANDYCROFT ANALYSIS
Give every payment a company trail
For a limited company, put the full legal company name on the quote and invoice, direct payment to the company’s banking arrangements and give the customer a clear job reference. GOV.UK guidance says a company’s finances must be kept separate from the finances of its owners and directors, and that its banking must be separate from personal banking.
Reconcile each receipt to the customer, invoice, job and stage. If money is moved or refunded, record the date, amount, reason and destination. The aim is not simply tidy bookkeeping: it lets the business, customer and accountant reconstruct what happened without relying on one person’s memory or inbox.
SANDYCROFT ANALYSIS
Match deposits to written stages
Before taking a deposit, give the customer a written scope, price, proposed start point and a list of what the payment covers. Break later payments against observable stages or identified materials, and issue a receipt each time. If the specification changes, confirm the variation, price and timing in writing before the extra work or order proceeds.
For materials, keep the supplier order, delivery evidence and allocation to the job. For subcontracted work, keep the instruction, invoice and completion evidence. Do not describe insurance as current without checking the policy, insured name, activity, limits and expiry date; retain the document that supports the statement made to the customer.
SANDYCROFT ANALYSIS
Build a recoverable job file
Keep the accepted quote, scope, drawings, change approvals, invoices, receipts, bank references, supplier orders, delivery notes, site photographs, completion notes and customer correspondence together under one job number. Give another authorised person a documented way to retrieve the file if the usual manager is absent.
GOV.UK’s current limited-company guidance says accounting records must cover all money received and spent, goods bought and sold, debts, and the documents needed for annual accounts and the Company Tax Return. It lists receipts, orders, delivery notes, invoices, contracts, bank statements and correspondence as examples, and says records normally need to be kept for six years from the end of the relevant financial year. A bookkeeper or accountant can help set the process, but directors remain responsible for the company’s records.
CHECK THE ORIGINAL REPORTING