Business Purchase And Checks.

[paul davies]

I bought a business a year ago based upon accounts given to me by the then owner.
I now have reason to suspect that figures were inflated to extort a higher price from myself.
How can I possibly get the previous two years tax returns to check the accounts I was given at time of negotiations?
Any help or advice is appreciated but I have already checked companies house to no avail.
Thanks in advance.

 

[Geoff T]

quickly - still mad wit another post! - if no luck at CH, was that because the seller was not LTD?

regards
Geoff

 

[KidsBeeHappy]

You cannot get copies of personal tax returns, or company tax returns. Tax returns are private and confidential.

You can obtain copies of records filed at companies house for Ltd co, and LLP. That's it.

Secondly, how do you know that the accounts were exagerated, and that its simply that you haven't done as good a job as the previous owner, and that a recession and credit crunch happened, and have negatively impacted most businesses in one way or another.

it's very easy to jump on "the accounts were exagerated" bandwagon, and not look for any other reasons for a fall in business.

 

[Jaydee]

Did you not retain accountants to carry out a due diligence exercise?

 

[paul davies]

Firstly with regards bandwagons....we have expanded a card and envolope shop to stock fair trade and jewelley plus free range eggs. His figures worked out to £12k net from the shop...trust me in our little village the credit crunch has had no effect on us....
With referance to due diligence yes it was done but we did not ask for tax returns for previous years silly but we knew the couple selling and trusted them....foolishly

 

[Geoff T]

quickly - still mad wit another post! - if no luck at CH, was that because the seller was not LTD?

regards
Geoff

see what happens when you rush - and get a "pog on"! - ignore me, I'm outta this one!

 

[GRDCredit]

I bought a business a year ago based upon accounts given to me by the then owner.
I now have reason to suspect that figures were inflated to extort a higher price from myself.
How can I possibly get the previous two years tax returns to check the accounts I was given at time of negotiations?
Any help or advice is appreciated but I have already checked companies house to no avail.
Thanks in advance.

Sorry if you have been 'ripped off' but what do you think seeing the last two years sets of figures will achieve?

You will have as much chance trying to get money back out of the vendor as I have of being the next speaker in the House of Commons