Bri19876 months ago

Robin Banks said: ↑ Alan R Price, present a petition for what?Click to expand... Winding up the company would be a good start. Obviously I can 'just write the debt off' which will just reinforce this guy's relief that scamming businesses is easy and, in fact, actually facilitated by our Company Laws. Maybe I can leave him free to do it to YOU next time! - but I suppose YOU are far too smart to be conned! Click to expand... If you believe the director has been at it, your remedy is to object to Companies House and take legal action by way of presenting a petition to the court. This will cost you about £2,500. The company's affairs will then be investigated (to a greater or lesser degree) by the official receiver, and if the director has been guilty of any serious misconduct, he may be disqualified, or sued by a liquidator, or very rarely, prosecuted. I am talking in practical terms. Unless you are prepared to spend £1,000s in time and money on pursuing a debt of £3,000, you may as well write the debt off move on, and concentrate on making sufficient extra profit to make up for the bad debt. In this particular case this debtor has applied for dissolution whilst legal action is in progress. This is against the law. Trying to get the appropriate authorities to investigate this is proving impossible. I'm guessing they have the Alan R Price mind set of 'why bother - just write it off and move on'.Click to expand... I think they might consider they have not yet seen enough evidence of wrongdoing to make further action proportionate at the moment. If business is going to bloom in the UK then credit must be easily available, but the protection afforded by our laws against people running up business debts and then just walking away from them is a scandal.Click to expand... The process is there already - you just need to invoke it.  

Fionas_Boy5 months ago

Hi, after a bit of advice on how best to deal with this situation. Currently turning over approx. £65-70k p/a. Directors Loan Account - £30k Bank Overdraft and Loan (Guaranteed) - £12k Unsecured credit card debt - £7k Personal Debt - £75k (credit cards and loans) Equity in house - £35-40k - just started a new 5 year mortgage deal. Corporation tax up to the last accounts to April 2016 paid up to date, nothing currently owed to HMRC. Following a nightmare 2 years going through a divorce I have landed up in the above position. I am currently still trading, working as an Engineering Consultant. The work is on going and I have no reason to believe this contract with cease any time soon however as in the Oil & Gas sector you never know what is around the corner at the moment. Due to the current oil price I also can't see any pay rises on the cards any time soon. The debts have spiralled out of control and now money I have coming in is due out every months with very little to spare. Roughly half of the personal debts are on credit cards and just paying the minimum payment on each, so not going down much. About half of the credit card debt is on interest free. I'm a director of another business but have business partners and other shareholders. This business has always been more of an investment and although the turnover is growing well every month we don't foresee a return on for at least another 12-18 months. What are my options with regards to getting out of this mess. The business debts are obviously only part of the problem. Would opening another Limited Company and trading through that one be of any benefit? Would I be able to start a fresh from now and not file any accounts for the period April 2016 onwards? Any help and advice would be appreciated.  

Gary19964 months ago

Hi Sally Sorry I wasn't aware that they didn't offer advice for business owners, hopefully business debtline were useful. For what it's worth I had huge issues going on from 2010-15 & looked at entering into an IVA, I consulted an IP [cost me £1500 + vat]. In hindsight I have to admit it was pretty much a waste of cash, all she did was to attempt to broker a deal with my main creditor, something which I could have done in any event. However whilst we trying to negotiate a deal the sneaky b******s made an application for a 'charging order' on my primary residency therefore I took action [I had previously warned them that all options were being considered] & filed for bankruptcy, which made them an unsecured creditor. Whilst it wasn't initially plan A I wasn't prepared to have them on my back for years to come, I felt a the best option was to bite the bullet & dispose of all debts at once. Whilst I have personally suffered a substantial hit, it was never going to be great, I have been discharged & I have started to re-build by financial status. What I am trying to say is that there are worse things that can happen & in my experience these people don't give a damn about you, your partner, kids or anything, they will wring every last penny out of you, through you on the streets & rub there hands in glee - be strong, address your issues & take action. Best of luck. Nigel  

R2_Amazeballs4 months ago

Hi, I'm really worried and would like some advice please. I am the sole director of a Limited Company providing IT consultancy and have now secured a permanent job with another company. I will no longer be using my limited company. I have been really silly and taken too many dividends and consequently can't pay back the corporation tax and VAT I owe which totals £25,000. I intend to write to my only creditor HMRC and inform them I'm no longer trading and will be issuing a Strike Off in 3 months from trading. Am I liable personally for the corporation tax and VAT? I have no assets in the company I can sell. I spoke with Business Debt Line and they assured me I'm not - but I'm really worried that I have acted fraudulently as director and therefore will be liable for the debts. I have one more invoice due to be paid in a couple of weeks but I need to draw another dividend personally for my family to live off. What are my options? Am I likely to be found acting irresponsibly? Could I go to prision??! I have no idea what to do. I don't own a house, we rent, I have no assets and I have two small children - I don't see how I can not draw a dividend now. Any advice would be helpful. Thanks for your help. Thanks for your help.  

R2_Amazeballs4 months ago

Hello again guys I have a ex-customer from a business I used to be a director of taking me to county court over a payment she made to the business (now dissolved by companies house, I genuinely lost everything last year.... and have began to try and rebuild my life.). Originally the court questionnaire came through and was sent to Mr Smith of Trading Company LTD (obviously I changed the details for this forum). I filled in the questionnaire saying that the business does owe her the money, but it no longer exists. I now have the first hearing summons and the defendant has been changed just to me. (although it was still addressed to Mr Smith of Trading Company LTD on the front of the envelope) Where do I stand with this? I don't want to get personally sued for this business debt, especially as she is the kind of person who would write it all over the internet that she had won her money from me, and it would open the flood gates to anyone else that feels like having a go. I just need a little advice on how to approach the court and say this business is gone, I agree the business owed her some money... its not me personally I'm no longer a director. Thanks in advance, Im worried sick about this. D  

Red4 months ago

We specialise in increasing cash flow, getting debtors to pay to terms, credit management consultancy, bookkeeping, self assessment filing to HMRC and one off business to business debt collections. We also provide a bookkeeping service to the entertainment industry in conjunction with our sister company Franklin James Entertainments. We guide new performers through the process of becoming self- employed, providing them with all the necessary information so that they can comply with legislation, run their performance calendar as a business and guide them on the daily requirements and functions of running the business.We also act for agents, performers and venues providing them with advice and guidance on all aspects of credit management and will mediate between agents, venues and performers when required to resolve payment disputes.  

Pete_W4 months ago

Oaktree said: ↑ Don - The whole point of creating Limited company status was design to encourage risk taking and set up business to employ people and help grow the economy. So yes I'd argue that there should be some sharing of the risk when a company fails with HMRC on directors loans. After all a company director has lost years of their lives put into building up a business, their income, and has probably racked up huge personal debts to get started or to stay afloat. I'd say the very least Limited company status should be extended to cover is a directors loan account up to a certain amount of day the average U.K. Salary. You say directors say did it I'm not paying my tax, like it's a causal easy thing to do?! If they are in this position they almost certain don't have money whatsoever. They are broke. Then they have months if not years of sleepless nights worrying about HMRC making them personally bankrupt. Have any of you who post on the insolvency forum ever been through this..?Click to expand... I've been there, had to sell the family home (at a time with young kids) so I could pay the business debts and move on. I was a sole trader. So I certainly don't think it's a "casual easy thing to do", I know first hand though that I owed money, it was my risk, and I sacrificed to pay it. That was a good while ago and I bounced back (hope you do to, things are rarely as bleak as you think at time). I have never contemplated going Ltd since though, happy with taking responsibility for my decisions.  

Matchmaker14 months ago

Dear All, I hope you can help as im at bit of a loss of what to do next. I was director of a Ltd company and went bankrupt this week as a result of an unsuccessful agreement between a business bank and myself as director with them withdrawing my overdraft. Business Debtline advised that I go bankrupt. done. Then send a copy of the order and form to resign as director to Companies House. I have done so as directed. They said that CH will then go to strike off the LTD company as there is no director and advertise so in the Gazette. Should I send a copy of the spongebob letter to my creditors or just wait it out. I ceased trading last week so at the moment they are unaware of my position. I keep checking to see if companies house has put anything on the gazette but nothing yet. Should i be sending a DS01 to CH too? Any advice on my situation would be much appreciated. Many thanks  

MDG Ltd4 months ago

Businesses operating as partnerships should reorganise their firms to reduce the risk of personal liability for business debts, legal experts warn.

Mary3 months ago
This topic has been discussed elsewhere
- see here