My Business Vat Liability/Debt

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Softlad

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Hi, I ran a small business (A cloths shop) until very recently with a Business Partner. We were both directors. We ran up debts, particularly VAT. The business was struggling and I decided we should cut our loses and close the business. My Partner has decided to continue with it and I have now left. I'm in the process of getting off the Directors register and removing access to bank accounts etc.
The VAT bill is around €12,000 and has generally been partially paid off each quarter (depending on sales) but never really seems to go down or rather increase.
The Accountant says that i am personally responsible for half of this VAT bill (not sure about that bit). I could understand that if the business closed down and insolvency happened and we filed accordingly.
Can the VAT people (or debt collectors) turn up at my house in the future if the Business eventually closes (which i'm sure it will). Any advice most welcome.
Kind Regards.
 
As a partner in the business, you could be liable.
What form did the business partnership have - shares, etc ?
Was there a partnership agreement?
How did you leave the business - if you were a shareholder, did your partner buy your share?

It isn't that simple just to walk away from a business
 
If it is a limited company then the liability is the company's and not yours. You say you were a director, so this suggests a limited company.

However your accountant says that you are personally liable for half the bill. This can hardly be correct, as if it is a partnership then you are severally liable for 100% of any unpaid amount.
 
Can directors not be chased for a companies debt? If they traded illegally or insolvently, isn't that a crime?
 
jpd said:
Can directors not be chased for a companies debt? If they traded illegally or insolvently, isn't that a crime?
Click to expand...

Yes, but there is no suggestion of that here. In fact the opposite. When the business was struggling the OP took steps to cease.
 
I dealt with a partnership that closed their business, not limited. Revenue chased 1 partner for 100% of VAT as other partner had left the country. If they cannot get it from both then they will get it from one.
 
5 days later and no reply from the OP to any of the questions asked by other posters.
It can't be that pressing a matter.
 
Apologies for not getting back to you but I did not get notified of replies. (figured this would be all lost in the forums). Very grateful I am for your replies.
The Type of Business was a 'Business Partnership' and we were listed as 'Business Name Owners' (not directors...my mistake). When I left the Business we filled out the RBN3 form (Cessation of Business) and the Business Partner Filled out RBN1 (Sole Trader) and the current business is operating under a Sole Trader. The business did not close and is still trading today with monies owed to VAT. I would just like to know if I am personally responsible in any way or if the Business owes it. Thank you so much for your input. Kind Regards. Paul.
 
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