Tax debt joint responsibility

[FrankFenton]

Hi

This is an unusual question!
My business partner and I both owe income tax which most of which has been paid now by monthly payments. However we still owe a sum of money (these are days when we were ltd contracting under one company and we didnt pay enough due to a bad accountant who then disappeared).

I have got to the point where I can clear my half of the owed money in one payment and I'm eager to retire due to serious ill health. However my business partner cannot pay his half in one go but is willing to keep the payments going for his half for about another year. My issue is that should he default in the future id still be responsible for the owed money.

Is there a way of paying my half off and they become legally responsible for the rest without it coming back on me or potentially my estate? Its not a huge sum of money but I feel I cant retire until I know im not responsible for the debt and I'm really not in a situation where I can still keep working as I need to spend my time on personal things.

 

[Bobbo]

You refer to "income tax" but I can't see how you could be responsible jointly for an income tax debt. Are you sure it is "income tax" you are talking about?

Do you perhaps actually mean corporation tax? Or is it the company's PAYE and NIC debt, rather than income tax?

 

[FrankFenton]

Its a very complicated case, in essence its PAYE and NIC.

 

[DontAsk]

Its a very complicated case, in essence its PAYE and NIC.

The point still stands. Income tax is personal. You cannot be liable for someone else's tax debt.

Do you mean that the Ltd is in default in not submitting correct PAYE returns? Are you concerned about company director responsibilities?

Even if it's complicated no one can really help without the detail.

 

[Newchodge]

Hi

This is an unusual question!
My business partner and I both owe income tax which most of which has been paid now by monthly payments. However we still owe a sum of money (these are days when we were ltd contracting under one company and we didnt pay enough due to a bad accountant who then disappeared).

I have got to the point where I can clear my half of the owed money in one payment and I'm eager to retire due to serious ill health. However my business partner cannot pay his half in one go but is willing to keep the payments going for his half for about another year. My issue is that should he default in the future id still be responsible for the owed money.

Is there a way of paying my half off and they become legally responsible for the rest without it coming back on me or potentially my estate? Its not a huge sum of money but I feel I cant retire until I know im not responsible for the debt and I'm really not in a situation where I can still keep working as I need to spend my time on personal things.

Without explaining exactly why it is a shared debt, no one can suggest how you pay off your half without being liable for your business partner's half.