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  • FIRST POST
    • onlinealien
    • By onlinealien 10th Mar 17, 11:23 PM
    • 2Posts
    • 1Thanks
    onlinealien
    Loaned a friend VAT money - Any way to get it back!
    • #1
    • 10th Mar 17, 11:23 PM
    Loaned a friend VAT money - Any way to get it back! 10th Mar 17 at 11:23 PM
    I gave £7000 as loan directly from my business account. The money is supposed to be for the next three months VAT and now I have to pay the VAT . After more than 7 month he doesn't answer calls and now ignoring text messages.
    The transaction is shown as loan out of my business account to his account
    Any way to get it back via court.
    Thank you
Page 1
    • DCFC79
    • By DCFC79 10th Mar 17, 11:43 PM
    • 30,118 Posts
    • 19,058 Thanks
    DCFC79
    • #2
    • 10th Mar 17, 11:43 PM
    • #2
    • 10th Mar 17, 11:43 PM
    I gave £7000 as loan directly from my business account. The money is supposed to be for the next three months VAT and now I have to pay the VAT . After more than 7 month he doesn't answer calls and now ignoring text messages.
    The transaction is shown as loan out of my business account to his account
    Any way to get it back via court.
    Thank you
    Originally posted by onlinealien
    Why do people do this, just why, it was money you were going to use for the VAT.

    Did you get anything in writing that it was a loan ?

    Do you know where he lives ?

    You could try the court route but if he has no means to pay you back then its gone.

    If you do go the court route you need to send a LBA, its letter before action, search google for a template
    Last edited by DCFC79; 10-03-2017 at 11:50 PM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Arleen
    • By Arleen 11th Mar 17, 12:39 AM
    • 968 Posts
    • 712 Thanks
    Arleen
    • #3
    • 11th Mar 17, 12:39 AM
    • #3
    • 11th Mar 17, 12:39 AM
    Reality is that the money is gone and you won't see it back. Best you can do is take him to court and mess his credit file for next 6 years.
    • dresdendave
    • By dresdendave 11th Mar 17, 10:22 AM
    • 643 Posts
    • 747 Thanks
    dresdendave
    • #4
    • 11th Mar 17, 10:22 AM
    • #4
    • 11th Mar 17, 10:22 AM
    I gave £7000 as loan directly from my business account.
    Thank you
    Originally posted by onlinealien


    Giving and loaning money are not the same thing. What evidence can you show to a court that it was a loan rather than a gift?


    Regardless of that you will almost certainly never see the money again. Probably better to concentrate on putting a plan together as how to pay the VAT people.
    • onlinealien
    • By onlinealien 11th Mar 17, 10:35 AM
    • 2 Posts
    • 1 Thanks
    onlinealien
    • #5
    • 11th Mar 17, 10:35 AM
    • #5
    • 11th Mar 17, 10:35 AM
    To be honest, right now, I feel dumb doing that.
    I have all text messages but not sure it it counts as evidence
    Crazy how a bit of money could change people as if you never knew them.
    • GDB2222
    • By GDB2222 11th Mar 17, 10:44 AM
    • 14,011 Posts
    • 75,405 Thanks
    GDB2222
    • #6
    • 11th Mar 17, 10:44 AM
    • #6
    • 11th Mar 17, 10:44 AM
    To be honest, right now, I feel dumb doing that.
    I have all text messages but not sure it it counts as evidence
    Crazy how a bit of money could change people as if you never knew them.
    Originally posted by onlinealien
    Yes, they count as evidence. You'd probably win any court case, but collecting the money after that is the difficulty.
    No reliance should be placed on the above! Absolutely none, do you hear?
    • StopIt
    • By StopIt 13th Mar 17, 8:37 AM
    • 1,103 Posts
    • 971 Thanks
    StopIt
    • #7
    • 13th Mar 17, 8:37 AM
    • #7
    • 13th Mar 17, 8:37 AM
    To be honest, right now, I feel dumb doing that.
    I have all text messages but not sure it it counts as evidence
    Crazy how a bit of money could change people as if you never knew them.
    Originally posted by onlinealien

    You'd have to take the person to court if they don't respond to your messages.


    Seek legal advice ASAP.


    Now a little OT: Would this unlike consumer debts, be a case that is escalated could end up on Channel 5? (Sorry, between me and my partner we've watched all 4 series of that show that shall remain nameless, and now I feed bad admitting this!)
    • DCFC79
    • By DCFC79 13th Mar 17, 9:51 AM
    • 30,118 Posts
    • 19,058 Thanks
    DCFC79
    • #8
    • 13th Mar 17, 9:51 AM
    • #8
    • 13th Mar 17, 9:51 AM
    You'd have to take the person to court if they don't respond to your messages.


    Seek legal advice ASAP.


    Now a little OT: Would this unlike consumer debts, be a case that is escalated could end up on Channel 5? (Sorry, between me and my partner we've watched all 4 series of that show that shall remain nameless, and now I feed bad admitting this!)
    Originally posted by StopIt
    Do you mean the 1 about the high court enforcement officers ?

    Theres also The Sheriffs are coming on bbc1.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • StopIt
    • By StopIt 13th Mar 17, 10:02 AM
    • 1,103 Posts
    • 971 Thanks
    StopIt
    • #9
    • 13th Mar 17, 10:02 AM
    • #9
    • 13th Mar 17, 10:02 AM
    Do you mean the 1 about the high court enforcement officers ?

    Theres also The Sheriffs are coming on bbc1.
    Originally posted by DCFC79

    Possibly.


    Don't blame me, the better half has control of the TiVo so reality TV features heavily!
    • DCFC79
    • By DCFC79 13th Mar 17, 11:01 AM
    • 30,118 Posts
    • 19,058 Thanks
    DCFC79
    Possibly.


    Don't blame me, the better half has control of the TiVo so reality TV features heavily!
    Originally posted by StopIt
    Lol, the 1 on Channel 5 is interesting, its amazing how the money is found when the threat of removing goods is suggested.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • 4Chickens
    • By 4Chickens 13th Mar 17, 11:28 AM
    • 493 Posts
    • 674 Thanks
    4Chickens
    I hate to be the bearer of bad news BUT:

    1 The VAT that you leant to your mate was not yours to lend. You collected that VAT on behalf of HM Revenue & Customs.
    2 If you do not/cannot pay this to HM Revenue & Customs you run the risk of a VAT inspection which will likely conclude that you have commited VAT fraud. And you will be hauled to the Crown Court.
    3 If you are a Limited Company then HM Revenue & Customs will report you to Companies House for defrauding the Crown and your company will be struck off and you will be banned from being a company director for a number of years.

    Like the other on here have said, you can go after your friend through the courts and they will likely make an award in your favour. However, the chances of you enforcing the debt will take a very long time and you will likely be unsuccessful in the end.
    • Bedsit Bob
    • By Bedsit Bob 13th Mar 17, 11:46 AM
    • 9,712 Posts
    • 51,015 Thanks
    Bedsit Bob
    Yes, they count as evidence.
    Originally posted by GDB2222
    Unless they're from an unregistered PAYG phone, in which case he could deny it's his phone and, therefore, not his text messages.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • GDB2222
    • By GDB2222 13th Mar 17, 12:11 PM
    • 14,011 Posts
    • 75,405 Thanks
    GDB2222
    Unless they're from an unregistered PAYG phone, in which case he could deny it's his phone and, therefore, not his text messages.
    Originally posted by Bedsit Bob
    It's still evidence. If there's a conflict in the evidence, the court will decide which it wants to believe on the balance of probability.
    No reliance should be placed on the above! Absolutely none, do you hear?
    • GDB2222
    • By GDB2222 13th Mar 17, 12:15 PM
    • 14,011 Posts
    • 75,405 Thanks
    GDB2222
    I hate to be the bearer of bad news BUT:

    1 The VAT that you leant to your mate was not yours to lend. You collected that VAT on behalf of HM Revenue & Customs.
    2 If you do not/cannot pay this to HM Revenue & Customs you run the risk of a VAT inspection which will likely conclude that you have commited VAT fraud. And you will be hauled to the Crown Court.
    3 If you are a Limited Company then HM Revenue & Customs will report you to Companies House for defrauding the Crown and your company will be struck off and you will be banned from being a company director for a number of years.

    Like the other on here have said, you can go after your friend through the courts and they will likely make an award in your favour. However, the chances of you enforcing the debt will take a very long time and you will likely be unsuccessful in the end.
    Originally posted by 4Chickens
    Businesses go bust all the time without all that happening. The money was set aside by the OP to pay his VAT, and now he can't pay it. So, it's possible his business is insolvent. Or he is, if he is not trading through a limited company.
    No reliance should be placed on the above! Absolutely none, do you hear?
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