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Loaned a friend VAT money - Any way to get it back!
onlinealien
Posts: 5 Forumite
in Loans
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
The transaction is shown as loan out of my business account to his account
Any way to get it back via court.
Thank you
0
Comments
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onlinealien wrote: »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
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 template0 -
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.0
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onlinealien wrote: »I gave £7000 as loan directly from my business account.
Thank you
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.0 -
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.0 -
onlinealien wrote: »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.
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?0 -
onlinealien wrote: »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.
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!)
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
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!)
Do you mean the 1 about the high court enforcement officers ?
Theres also The Sheriffs are coming on bbc1.0 -
Do you mean the 1 about the high court enforcement officers ?
Theres also The Sheriffs are coming on bbc1.
Possibly.
Don't blame me, the better half has control of the TiVo so reality TV features heavily!
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
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.0
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