HMRC debt in my name

flanker1979

Hi, I have a vat bill/debt from 2022 from my exs company set up in my name. its for £6500, i contacted the debt collection company chasing it and offered them a full and final settlement of what I could. I'm a single mum of 2 on a low income so don't have spare money to pay!
They said no and sent the debt back to HMRC.
I realize I'm liable as its in my name, are HMRC open to full and final settlement offers?
Ex wont pay anything towards debt. 

Thank you for any help/advice

MyRealNameToo

Have you checked the status of the company on Companies House?

Were you a director of the company too? Or just the named contact for HMRC? Were you a shareholder?

The company is a legal entity in its own rights and its debts are its own. HMRC can take action against the company and potentially have it wound up, the only issue would be if you were taking dividends when there were no profits to share 

flanker1979

The company was a small (1 person) transport company for my ex, my only involvement was the use of my name.
I just want to clear and be rid of the debt, i can make a settlement offer with money my family will lend me but not the total amount 

eskbanker

flanker1979 said:

The company was a small (1 person) transport company for my ex, my only involvement was the use of my name.

But the question was how was your name used?

flanker1979

To be honest I don't know The letters from debt collection agency/HMRC are in my name relating to that company.
I think my name was used so  he could add more routes for driving.
I've been told that as its in my name i am 100% responsible.

eskbanker

Definitely worth spending more time digging out detail - as above, if this is/was a company then that's a separate legal entity from any individuals involved with it, and will appear on Companies House records.

If ex was operating as a sole trader then that would be different, but it's important to get to the bottom of this....

MeteredOut

flanker1979 said:

To be honest I don't know The letters from debt collection agency/HMRC are in my name relating to that company.
I think my name was used so  he could add more routes for driving.
I've been told that as its in my name i am 100% responsible.

Who has told you this? 

As above, you need to find out if this was Ltd company, or whether you were set up as self-employed.

I suspect HMRC won't offer a reduced settlement offer, but you should accept a payment plan once you prove your inability to settle the debt.

MeteredOut

flanker1979 said:

To be honest I don't know The letters from debt collection agency/HMRC are in my name relating to that company.
I think my name was used so  he could add more routes for driving.
I've been told that as its in my name i am 100% responsible.

You might also want to get to the bottom of why he set things up this way.

eg, Did he already have a company that was set up and approaching the VAT threshold, and therefore set up another one, doing the same business but under your name, which he then believed/hoped would mean he didn't have to pay VAT on those invoices, thus remaining competitive? This is called artificial separation of business activities and is pretty much tax evasion; you don't want to be party to that.

MyRealNameToo

flanker1979 said:

To be honest I don't know The letters from debt collection agency/HMRC are in my name relating to that company.
I think my name was used so  he could add more routes for driving.
I've been told that as its in my name i am 100% responsible.

Does it mention a company name on the letter? eg Flanker1979 Limited? 

Do you still have the VAT registration certificate? Similarly look on that to see if it has a company name on it 

You need to establish if this is a company debt as you think it is or if you were a sole trader fronting for your ex

molerat

What a debt collector tells you and the truth are often far separated.  As others have said you need to find out your true liability from HMRC - have you had any letters directly from them to you personally ?

flanker1979

Thankyou, I will try to find these things out.
Its looking like maybe I signed something I shouldn't have!