Director Loan - Debt Recovery?

[BA to the Stars]

Is there any possibility that the company could now show this as a bad debt (thereby incurring bad debt relief)? This may only affect the current years accounts (and not those to which the corp tax relates), however depending on how much activity has gone through the company this current financial year, it may be showing a loss.

Just a suggestion to throw to the accountant / HMRC.

Good luck and hopefully the other director will get his comeuppance.

[MaryPoppins]

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.

He is my baby's father so that's being done. He has now denied paternity apparantly (on what grounds I have no idea), but the CSA won't give me his address I don't think.

I will definitely consider a Private Investigator if HMRC want to know the debt has been chased. However, knowing he will make sure he doesn't have anywhere near that amount available, it all seems a bit pointless when I have such a lot else to think about...

[MaryPoppins]

Update! Sorry if no one is interested but erm, I will update anyway as I am going a bit stir crazy.

Thanks to advice on here, I have spoken to an insolvency practitioner. I did also try various HMRC departments, to no real avail. My accountant was next to useless also and advised more or less ignoring the situation until the company is wound up.

The insolvency practitioners are coming to see me next week, and although I have no idea how I will pay them (or what they will cost me) I can't risk not having someone help me now.

They advised that the best way forward may be a directors managed buy out (I think) rather than allowing HMRC to force liquidation. I have no idea what impact this will have on me personally, but they (and the recovery dept of HMRC) made it clear that simply not paying part of the CT will result in some nasty enforcement action from HMRC, before they force wind up - leaving me at risk of being unable to act as Director again, and possibly bankrupt.

I have just sent a (probably futile) Company email to the last email address I have for the other Director, stating that the Company requires confirmation of repayment within seven days. More for evidence than anything else perhaps, as he won't respond.

This is starting to have some real impact on me day to day now, it's on my mind a lot. Most of the worry centres around the unknown however; so having the insolvency practitioner's advice will hopefully help.

Thanks everyone x

[Zippy]

MP - good on you for trying to get the situation under control.

I can't offer any practical advice as it is outside my experience, but I'm sure doing nothing would be more stressful. Remember it is only money and they can't hang you for being in debt. You don't have to be a company director to operate as a contractor either.
Re the paternity issue - has this man never heard of DNA testing?

I'll keep my fingers crossed that the insolvency people come up with something useful.

[MaryPoppins]

MP - good on you for trying to get the situation under control.

I can't offer any practical advice as it is outside my experience, but I'm sure doing nothing would be more stressful. Remember it is only money and they can't hang you for being in debt. You don't have to be a company director to operate as a contractor either.
Re the paternity issue - has this man never heard of DNA testing?

I'll keep my fingers crossed that the insolvency people come up with something useful.

Thanks Zippy. The CSA are organising a DNA test, which is a pretty shameful situation to be in from my point of view, even though I know it's just his pie eyed way of attempting to delay the inevitable.

[DaveB]

Thanks Zippy. The CSA are organising a DNA test, which is a pretty shameful situation to be in from my point of view, even though I know it's just his pie eyed way of attempting to delay the inevitable.

If you do find out where he lives I have a cricket bat and an inventive imagination

[TinTrump]

Update! Sorry if no one is interested but erm, I will update anyway as I am going a bit stir crazy.

I'm sure people on here are not merely interested but aghast at what's happened to you MP. I've no words of solace except to say that the moments where you feel some optimism will become longer and more frequent. And you've a smashing wee boy there. Good luck.

[tino]

Auch Mary, sorry to hear of all this tulip. You're doing the right stuff though.

Chin up - Ben needs you

[Lewis]

Update! Sorry if no one is interested but erm, I will update anyway as I am going a bit stir crazy.

Thanks to advice on here, I have spoken to an insolvency practitioner. I did also try various HMRC departments, to no real avail. My accountant was next to useless also and advised more or less ignoring the situation until the company is wound up.

The insolvency practitioners are coming to see me next week, and although I have no idea how I will pay them (or what they will cost me) I can't risk not having someone help me now.

They advised that the best way forward may be a directors managed buy out (I think) rather than allowing HMRC to force liquidation. I have no idea what impact this will have on me personally, but they (and the recovery dept of HMRC) made it clear that simply not paying part of the CT will result in some nasty enforcement action from HMRC, before they force wind up - leaving me at risk of being unable to act as Director again, and possibly bankrupt.

I have just sent a (probably futile) Company email to the last email address I have for the other Director, stating that the Company requires confirmation of repayment within seven days. More for evidence than anything else perhaps, as he won't respond.

This is starting to have some real impact on me day to day now, it's on my mind a lot. Most of the worry centres around the unknown however; so having the insolvency practitioner's advice will hopefully help.

Thanks everyone x

I really feel for you. It's an awful situation. Stay strong and focus on the positives as much as you can, at least this has left you with a lovely child, which money cannot buy!

[MaryPoppins]

I'm sure people on here are not merely interested but aghast at what's happened to you MP. I've no words of solace except to say that the moments where you feel some optimism will become longer and more frequent. And you've a smashing wee boy there. Good luck.

Thank you all, your nice words are oddly really comforting as you all understand more than my family, who are supportive but slightly baffled.

I am almost tempted to stop telling people as each new development occurs, because surely they must think "christ what's she done to him?!"

I have had a shockingly aggressive and threatening message in response to my email. From his mother! It is quite long, grammatically crap (!), and conveys a feeling of very vicious anger, and panic. She demands I stop "harassing" her son, and threatens me with legal action for harassment...(?!)

She tells me over and over again that I should not be chasing the loan 'until December' should it remain unpaid, which he does not intend. It also rants about the CSA 'nonsense' and that as I had the baby against his wishes, I should support "it", that he should not have to 'pay through the nose for it'.

The message is very aggressive and, well, nasty. It is also incredibly long!

Although upset, I am chuffed that I managed to reply simply to say "Thank you for your message, and for confirming that the Directors Loan and accrued interest will be repaid in full by Dec. Please however note that this email is the first and only contact to be made with <his name> since 12th March, as per his request."

She replied quickly to say "I neither confirmed nor denied that the loan would be repaid in Dec, so stop putting words in my mouth" then went on to demand that 'dealings in this matter' be directed to her, not her son as he no longer uses the email address I'd used.

I replied only to confirm that 'dealings in this matter' would be directed only towards Directors of the company, and sadly, not their mummies.

Her response, plus the fact that he is in fact now completely uncontactable of course confirms that I have made the absolute right decision in taking action now. I am also resisting all urges to rip her to shreds verbally, because the calmer approach will probably only irritate her more. Plus I suspect she is mentally ill.

Had better days it's been said. But on the plus side, Ben gets more lovely with each day that passes.