Potential Bankruptcy - help needed on VAT and Tax

Flyright

Thanks debtinfo, that's what I was hoping to convey in my replies, it wasn't a comment on the specific situation here as we don't know the full story but I was wary about the replies implying somewhat incorrectly that no action could/would be taken in non-payment of HMRC debt cases and that HMRC are somehow involved in deciding to disqualify a director.

JasonLVC

leveller2911 wrote: »

JasonLVC wrote: »

The £10k belongs to the Ltd Co and that is where it will remain.


Being registered for VAT Jason mean they collect it on behalf of HMRC....

How can it be the Companies money? You collect it from the client and then pay it to HMRC, he's kept the money and spent it,its theft....Its not earnings .

Or are you talking about the £10k tax owed? and not £10k vat?


PS : Nice sig by the way....

Poor choice of wording from me, but then I was in a Starbucks whilst the wife was shoppping.....

What I meant was the the 10k VAT debt belongs to the company and not the individual Director and so the individual Director is not liable for the debt in anyway.

I appreciate that the VAT collected by the company (and paid in good faith by the customers of the company) does belong to HMRC but also appreciate that many firms dip into that VAT pot when cashflow is tight. It ain;t right, it only compounds the problems but happens quite often.

hopefulfooluk

leveller2911 wrote: »

The fact remains that he's charge customers VAT (which is'nt his) and then spent it.clearly stealing....

VAT is a tax, as a registered VAT business your a tax collector, its bad enough people having to pay it in the first place but then for the guy to spend it is just plain robbery.......

I have always been polite, not a Troll but its like a "happy clappy Church " in here and theres nothing wrong with honest answers and forming a judgement from the OP.....

Like I said in my original post its not rocket science to seperate the VAT money from income.........No excuses

Many people including myself have fallen on hard times and not had a "Pot to p1ss in" but would never steal money....

What a load of complete b*****ks. I for one am someone who went bankrupt with £15k+ of debt to HMRC - about half of that was VAT. Does this automatically class me as a thief?

Your cashflow might be perfect - whoop de do for you, well done, give yourself a pat on the back - but the truth is for the majority of companies, having a 3 month VAT delay is a useful form of credit to cover bills when customers pay late. That doesn't make them criminals. I wonder what you'd do if you had a bill come through that was supposed to have been covered by a customer's invoice that was due weeks ago? Would you leave the VAT money intact? I seriously doubt it if it meant someone wasn't going to get paid, or you wouldn't be able to meet your mortgage payment, or so on.

Wake up and get a grip - the OP's friend is not a thief - and neither am I, thank you very much.