Director Loan - Debt Recovery?

[scotspine]

having been in a similar [allegedly] but different [sic] situation, i can understand your sentiment sa, although it might not be the best option in the long run.

[DS23]

you mean long wheel shirley?

[MaryPoppins]

God Mary I can't believe you're going through this!!!


So the company gave him a loan which he hasn't paid back.

I'm guessing there was no credit agreement in place...so he didn't sign anything to agree to pay it back by a certain date or anything...

As far as his situation goes, the only thing he's liable for is a bigger personal tax bill.
Make sure HMRC know about this and chase him for extra tax from it.

Is he earning from anywhere else? Is he on the dole? Shaft him as much as you can with regards to shopping him up to people.
Infact, just shop him up to everyone - ring the police and say he's got child porn on his PC too - the fooker deserves it

<breathe>

With regards to your company...I doubt you'll legally be able to chase him for the money back, so your compay is screwed if you dont have the corp tax bill. Unless you can write this money off as "fraud", therefore seriously reducing your corp tax bill?
Your accountant should really be on the case with this stuff though - are you with SJD? I bet they'd be able to sort it.

You should walk away scot free as long as your accountant does his job right - just stay calm, focussed, and use your business head.

And set up a web page/facebook page with all the details of this moron so that everyone else can see what he's done to you.
Heck get Watchdog involved!!

I'd string him out me like, completely.

In fact, you're already in tulip loads of debt - add another grand to that to get someone to knee-cap him.

You are NOT a victim!

Thanks SA. Not sure I will get away scot free unless I am perhaps seen to chase the debt as the Company, but Ive learned that he has now moved house and I have no idea where to, which adds to the fun.

I think a chat with HMRC to be upfront and explain the situation is the first thing I will do, then a chat with an insolvency practitioner as advised - I don't want to run around trying to chase the debt when it will almost definitely be fruitless, if I don't have to.

As for the kneecapping thing, very tempting - he's Ben's dad too and is also not exactly complying with the CSA either. I hope I make better decisions in the future!!

[pmeswani]

IIRC resigning as a director doesnt absolve you of liability for previous coporate actions, only of those that occur after you have resigned.

Shame really. A good knee-capping is in order.

[MaryPoppins]

Shame really. A good knee-capping is in order.

Too right. My Dad is itching to hunt him down and knock ten bells out of him, but that wouldn't achieve anything except said ****** feeling hard done by. Rising above it makes me feel slightly more dignified, if nothing else!

[MaryPoppins]

Just to be clear. If the loan isn't repaid within 9 months of the year-end, it is the [U]company[U] that incurrs the 25% tax liability, not him. The only way he gets a tax liability associated with the loan is if it is forgiven. Well, also, his P11D from the company should show a benefit in kind associated with the loan if he hasn't paid interest on it.

Assuming you are no longer billing through the company, I think you should consider letting it go bust. BUT you should really talk to an insolvency practitioner before you consider this, to determine the likelihood of HMRC coming after you as director and the potential impact on your credit rating. I could guess at these, as could any accountant, but, if I were you, I'd talk to an insolvency specialist as they will have these answers and may be able to raise other issues. I would expect that a liquidator would go after his debt to the company first, before they get into trying to go after you in your role as director. I believe that, in order to go after you as a director, they would have to prove that you were letting the company trade even though you knew it couldn't pay its bills (Wrongful trading). That is a legal issue and may not be easy for them to establish.

Talk to an insolvency practitioner - outline the situation and get their opinion.

If you don't want to do that, by all means, get a debt collector involved, file a claim, obtain a judgement against him and do everything possible to collect the debt, assuming that his finances are such that you will be able to get something out of him.

Missed this post somehow. Thank you very much - I won't work through the company again, as my accountant advised me not to.

I will speak to HMRC and be completely honest so that they have plenty of warning. I will then find an insolvency practitioner and ask their advice, but I am going to have to prepare to stomach whatever HMRC throw at the Co, as the CT will not be fully repaid.

His finances will not be in any fit state to pay the loan back, and although recovery action might worry him a bit, ultimately it won't get me anywhere except out of pocket myself. I don't even know where he lives anymore.

So I guess I will just get some advice and prepare for the worst.

[Zippy]

Chin up MP. You might find HMRC more helpful than you think and (a small consolation) he's in a lot of trouble.

[Gonzo]

I can't believe my suggestion of getting him knee-capped has been passed by...

Maybe because most of us think of it as a perfectly reasonable response?

Anyway, how is your application for security clearance going?

[pmeswani]

I don't even know where he lives anymore.

So I guess I will just get some advice and prepare for the worst.

It's times like these you wish you registered his mobile number on one of those nanny sites.

I was going to suggest contacting the CSA and tell them that he owes you Child Maintenance (After all, they don't bother checking for paternity), but that is a bad idea.

[cojak]

Thanks SA. Not sure I will get away scot free unless I am perhaps seen to chase the debt as the Company, but Ive learned that he has now moved house and I have no idea where to, which adds to the fun.

Get a private investigator to track him down - I suspect that he hasn't tried that hard to hide his whereabouts, thinking that a house move is all he needs to do.

I've head that they aren't as expensive as people think...