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PostPosted: Thu Dec 18, 2025 5:06 pm 
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Thought the original piece on this was on here, but can't find it - maybe I read it but couldn't be bothered posting it. But not the first tale of its kind for firms like this, I'd guess.

But it looks like the drivers are owed account money for school runs etc, and they won't be the 'employees' in the strapline here - they'll be self-employed drivers doing school runs, and the money will have been funneled via the office here.

Which is maybe interesting from the legal perspective - of course, the company can be liquidated and the owners can walk away from its debts.

But I'd have guessed that legally the account money for drivers should have been protected, and separate from the company's own bank account etc, and thus should be recoverable.

If the company has effectively spent the school run money itself, effectively, then sounds a bit dodgy [-(


Drivers 'owed thousands' after 'invaluable' Cornwall taxi firm 'went bust'

https://www.cornwalllive.com/news/cornw ... e-10708751

It shut unexpectedly in October and the former employees say they are still out of pocket with no answers

A popular Cornish taxi firm is said to have left drivers thousands out of pocket after unexpectedly closing down.

Customers were left devastated to learn Ace Cars in St Ives had ended its service for good in October.

The popular taxi firm had operated in the area for the past 26 years, with locals mourning the “invaluable” service as a “huge loss” to the community.

Staff, however, are said to have been given just 24 hours notice for the shut down over text and say many are yet to be paid for their last two months of work.

Richard Morris, 55, said he is owed over £2,000 and was left “numb” by the news.

The dad-of-two, who has worked for the company for the past 20 years, said: “You don't realise how part of a community you are until something like that happens. A lot of people, it's pulled the rug from underneath their feet. It's not just the people that were working for Ace cars. It's the people that Ace cars were looking after.

“We got a text on the Friday morning to say that last business will be Saturday and the doors will be closed and that will be it.

“My money was for September that I'm missing, and that's just over £2,000. I know other drivers haven't been paid. Some have been. Some have been paid their full amount for September and October. Others, like myself, I've just got October's money.”

It is understood Ace Cars went into voluntary liquidation and Richard has since set up a new firm, Harbour Cars, with a colleague, operating in the St Ives area.

Asked whether he would have wanted to help buy Ace Cars out instead to stop it going under, he said: “We all would have because we'd still be there for people.

"The name Ace Cars would have gone on, the school contracts would have gone on because as soon as the company goes into bankruptcy, the council takes away the school accounts. And that was regular income. There were a lot of guys that were reliant on that account money to come in.”

He added: “Many of us, myself included, have still not spoken to management.”

Another member of staff said: “If we’d have been given the option, there was three or four of us, at least, who would have bought it. It was certainly viable to buy it. But for some unknown reason, it did voluntary liquidation, which meant all the school contracts went back to the council, so they lost a lot of income."

The worker said they are “extremely disappointed and frustrated that it could easily have carried on”.

They added: “That's why it's so disappointing because we could all be in work. Ace Cars would still be serving the customers.”

Ace Cars have been approached for comment.

For anyone needing a taxi in St Ives, you can contact Harbour Cars on 01736 797688.


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PostPosted: Thu Dec 18, 2025 6:59 pm 
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Quote:
But it looks like the drivers are owed account money for school runs etc, and they won't be the 'employees' in the strapline here - they'll be self-employed drivers doing school runs, and the money will have been funneled via the office here.

I wonder if that's the case.

I suspect the drivers are owed money for a week or so, or maybe a month or so, but councils often take many months to pay.

So the money might still be being held by the council.

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PostPosted: Thu Dec 18, 2025 7:17 pm 
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Not sure, Sussex, but the piece certainly makes it sound like accounts money is going through the office before it gets to the drivers, and it's mostly school money, by the sounds of it.

But if the council still has to pay for jobs done, then presumably that will be paid now to the appointed liquidator, who would I'd guess then pay the drivers. So it's maybe all just tangled up in the administration and the appointment of a liquidator, etc.

Which is maybe why the driver is claiming he's got some of the later money, but not some of the earlier money :-s

But, as regards the legality of it all, it may well be tied up in contractual issues, which is in turn connected to the whole employment status and VAT stuff #-o

I mean, if it could be said the school was only contracting with the office, then maybe the drivers won't see any more money.

But I'm not sure how the sub-contracting with drivers (effectively) works in terms of if the principal contract was between the office and the education authority...

Quote:
“My money was for September that I'm missing, and that's just over £2,000. I know other drivers haven't been paid. Some have been. Some have been paid their full amount for September and October. Others, like myself, I've just got October's money.”


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PostPosted: Thu Dec 18, 2025 7:31 pm 
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But I'm not sure how the sub-contracting with drivers (effectively) works in terms of if the principal contract was between the office and the education authority...

In most cases, actually down here in all cases, the contract is with the taxi/PH firm, which then in turn has agreements with individual drivers.

This is why councils are paying so much; the middleman is often filling his boots.

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