Cabot and Mortimer Clarke THREAD CLOSED

Themoneyshot

When you say you draw money from the business to pay the bills, do you mean business bills or personal bills because using it to pay personal bills would be taxable as income.

exponential

https://forums.moneysavingexpert.com/discussion/comment/81931843#Comment_81931843

So yeah, both business and personal.

Basically, my earnings match my outgoings. I am in the process of setting up payroll (my accountant is) and any excess per month (which is minimal) stays in the business account for the payment of voluntary VAT payments and other associated business running costs.

I pay VAT, income tax and corporation tax plus all the household bills.

When I say I don't draw money from the business or are paid a salary, I am talking about a useable income in excess of my outgoings which never occurs anyway.

exponential

https://forums.moneysavingexpert.com/discussion/comment/81931808#Comment_81931808

God I am so confused. I understand what you are saying but so many others have said to maintain contact to prevent further action so which is the correct course of action to take.

God knows….😫

Grumpelstiltskin

Look I know you want to keep the business but honestly how long can you carry on as you are doing?

You will at some point have to make a decision, the longer you leave it the harder it will be.

sourcrates

Its difficult to give you exact advice on this, as the debt collection industry thrives on computer generated mis-information, intimidation and bluff, its designed that way to blur the lines as much as possible.

One CCJ and your house of cards comes crashing down, thus taking the decision out of your hands on what to do next, I can`t really comment further on this as your situation is unique, and has you on a knife edge.

I do wish you luck with it, but I fear something will have to give here.

exponential

@Grumpelstiltskin @sourcrates

You're both right and it is a unique set of circumstances really.
I set the business like all new start-ups do, thinking I'll be a millionaire in a couple of years!
If only I was prepared for how running an electrical contractors would turn out!
I work not stop, I work all day and continue to work into the night doing paperwork and certifications.

I am so heavily invested into the business and have built up such a good client-base that to give it all up after all these years would be a travesty.

I think, to continue the business and family income, I will have to resign as Director and continue as just an employee on minimum wage and run it like that. I will pass on ownership to my wife and accountant until such time that it is feasible to return as an official Director.

I just can't go back to marching to somebody else's beat, I did it for 30 years and you get no thanks for it.

Running the business the way I am suits our family needs as it keeps things flexible for everybody and I can pick and choose who I deal with on a daily basis.

Big decisions are needed.

Grumpelstiltskin

I haven't read back but have you spoken to Business Debt Line?

Debt advice | Free Debt Advice and Support | Business Debtline

ManyWays

This is not a business generating enough profit to support you. It is an exhausting, time consuming occupation that prevents you working and leaves you stuck with a sub prime mortgage

You may get "no thinks" for working for sometime else, but you get a salary, paid holidays and sick leave and a pension.

If you disagree, post that full SoA with lender names and mortgage details and your house value… And say what else will improve over the next few years.

Because hoping 50k of consumer debts is just going to be written off sounds fanciful…

exponential

https://forums.moneysavingexpert.com/discussion/comment/81931963#Comment_81931963

Yeah, it's specifically for business debts only I'm afraid.

exponential

I completely understand what you are saying but here comes the really sticky part, my experience will get me a job as an Electrical Chargehand or Design Engineer.
Those positions come with a £70k+ wage and if I'm on £70k, they will be able to sting me with an attachment of earnings order.
My current position, although basically unpaid, protects me from anything like that and really limits their ability to take anything off me that will put me back to working for nothing again but this time, working for somebody else whilst working for nothing.

At least this way, I have control of my destiny somwehat.

I have already messaged my accountant with the plan to resign and let my wife take the reins so my business will not be affected.

I hope this makes sense.