I can't pay vat owed

Discussion in 'General Business Forum' started by Ambi Singh, Apr 17, 2019.

  1. Maxwell83

    Maxwell83 UKBF Regular Free Member

    527 120
    Okay, that's not good. BUT, are you better now? If so, are you back in the business making money again? If the business is viable, consider trading through it - £400 p/w should satisfy the repayment plan - any chance you could do that when trading at full speed?
     
    Posted: Apr 17, 2019 By: Maxwell83 Member since: Aug 4, 2012
    #21
  2. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,908 346
    You should take advice from an IP.

    HMRC cannot go after your personal assets for a Company debt unless you have committed fraud.

    If your 'paying yourself' did not go through payroll and get taxed then it is likely to be a Directors Loan account due to the Company - you will therefore be a debtor.

    If HMRC Liquidate the Company, the Liquidate will investigate this and will look to you for repayment of the DLA. This can then include proceeds against you and your house could be at risk - not because the Company owes HMRC but because you will owe the Company money.
     
    Posted: Apr 17, 2019 By: Lisa Thomas Member since: Apr 20, 2015
    #22
  3. kulture

    kulture UKBF Legend Staff Member

    7,887 2,146
    Most of all do not worry. The debt is not yours to pay at the moment. No-one can take your house away from you yet. If the company is struck off then the debt dies with it. HMRC MAY apply for the company to be resurrected, but they probably will not. What is more likely is the HMRC objects to it being struck off and it is not. Then they must either wind the company off, in which case the money situation is investigated, or they do nothing and the company is eventually struck off.
    When they investigate the money situation they may well decide that the money was a Directors Loan and has to be paid back to the company. This is when you agree a re-payment schedule with the Official Receiver, NOT the VAT inspector.
    This could take years. It may not get this far. Stop worrying. By all means start saving so that if it comes to it you have something to pay.
     
    Posted: Apr 17, 2019 By: kulture Member since: Aug 11, 2007
    #23
  4. Mr D

    Mr D UKBF Legend Free Member

    14,231 1,554
    So far what we know is that the company owes the debt.
    Him paying the company debt personally is nice and all but not yet legally required.
     
    Posted: Apr 17, 2019 By: Mr D Member since: Feb 12, 2017
    #24
  5. Mr D

    Mr D UKBF Legend Free Member

    14,231 1,554
    Bit like Mastercard?

    Who if they pay it back will look to make some money to pay it back with... and who do they charge?
     
    Posted: Apr 17, 2019 By: Mr D Member since: Feb 12, 2017
    #25
  6. Ambi Singh

    Ambi Singh UKBF Newcomer Free Member

    6 0
    No chance I'm afraid I have a offer from someone who is willing to take the business on including the debt can I resign as the director and give the business up is that a option
     
    Posted: Apr 17, 2019 By: Ambi Singh Member since: Apr 17, 2019
    #26
  7. Ambi Singh

    Ambi Singh UKBF Newcomer Free Member

    6 0
    Hi thanks for your advice it made me feel a little better I just wanted to know if it is possible to resign as a director as I have had a offer to take on the business with the debt
     
    Posted: Apr 17, 2019 By: Ambi Singh Member since: Apr 17, 2019
    #27
  8. Pish_Pash

    Pish_Pash UKBF Ace Free Member

    2,378 603
    The difference being ...you have a choice whether you give Mastercard your custom (& therefore it's your choice whether you chip in wrt to the claw back costs)...not so with HMRC.
     
    Posted: Apr 17, 2019 By: Pish_Pash Member since: Feb 1, 2013
    #28
  9. Mr D

    Mr D UKBF Legend Free Member

    14,231 1,554
    Brits living and working overseas and not dealing with HMRC appear to have made a different choice.

    No reason someone must deal with HMRC if they really want to avoid them. Come to think of it, little old lady next door to me probably does not deal with HMRC any more.
     
    Posted: Apr 17, 2019 By: Mr D Member since: Feb 12, 2017
    #29
  10. Mr D

    Mr D UKBF Legend Free Member

    14,231 1,554
    By that you mean sell them the business?
     
    Posted: Apr 17, 2019 By: Mr D Member since: Feb 12, 2017
    #30
  11. Alan

    Alan UKBF Legend Full Member - Verified Business

    6,185 1,711
    Of course you can resign as a director and sell them the business - sounds like you have a way out
     
    Posted: Apr 17, 2019 By: Alan Member since: Aug 16, 2011
    #31
  12. Ambi Singh

    Ambi Singh UKBF Newcomer Free Member

    6 0
    Yes they are willing to take the debt on for the business
     
    Posted: Apr 18, 2019 By: Ambi Singh Member since: Apr 17, 2019
    #32
  13. ADW

    ADW UKBF Enthusiast Free Member

    1,129 171
    Looks like you found your get out of jail card. Many people find themselves getting caught falling behind with vat so you won't be the first or last.
     
    Posted: Apr 18, 2019 By: ADW Member since: Oct 25, 2007
    #33