Bankruptcy Sole Trader and HMRC?

archieoscarcharlie

Hello,


I currently run a business and after a messy divorce I have been left with a lot of debt from my previous marriage. I have been struggling for 2 years to meet minimum payments and I am now expecting my first child with my partner. I have a large debt for late filing payments from HMRC also lingering.


Does anyone know if I sign my business over to my partner could I continue to trade but the business in his name and myself as an employee, and if HMRC charges can be included in Bankruptcy?


I would be most grateful for any advice, Thank you.

mwarby

Depends on profitability of the business, but if your share of the business has a value, the OR will want it, or see where it has been spent, if they feel it was sold under value they will seek to reverse the transaction

It may help others to know what the legal structure of your business is, eg is it a ltd company

archieoscarcharlie

Thank you.


No I am a sole trader, the business has no value as such I run a management company but make a profit of around 8k a year. I have not completed a tax return for two years so they would have no insight to my business, the only way they would track my business is via my business bank account which I would close and set up a new one in my partners name so he can be in charge while the BR is taking place.

mwarby

I would advise against misleading the OR and HMRC, your HMRC debts will be written off anyway, so best not have them chasing you later for undeclared income.

As the business if making a profit you need to be careful with the OR, they'll want an income from it one way or another. You risk a bankruptcy restriction order, delayed discharge and possible court action if you attempt to deceive the OR

tigerfeet2006

Please get in touch with Business Debtline and get them to go through everything with you.

You can run a sole trader business when bankrupt.

tigerfeet2006

https://www.businessdebtline.org

Gr00vebird

I've done a similar thing however with a limited company
I've advise going to 3 insolvency practitioners and take advice from their "free 30 minute initial meeting'
you can spill the whole story to them, then lay out your future strategy on how to go forward
they'll give you tips and you can go from there
all the best

tigerfeet2006

NO! Don't do that. You go to Business Debtline who are a charity specifically set up for helping business's. They will give ongoing support through out the whole process and help and advise as is needed.

This thread is 3 months old and I doubt the OP is still reading it as they have only ever made the 2 posts in this thread but just wanted to re-iterate to the OP and lurkers please contact Business Debtline if you are struggling.