Self-Employed now Limited

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jewels.p
jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
in General accounting discussion
My other half was speaking to a guy he knows who has a Landscaping Business. He was owe the VAT man £60,000. He told my other half that he got off with paying it and has now become a limited company in his wife's name. Can this happen as I thought all debt only got written off if you were limited and liquidated the company? He wasnt limited before when he was due the VAT.:001_unsure:

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  • wbauk2002
    wbauk2002 Registered Posts: 110 Beyond epic contributor 🧙‍♂️
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    I would say he still owes the money, and his personal assets are liable
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    If he transferred the VAT number as a TOGC, then all the resonsibilities transfer to the new owner of the VAT number, in this case, the Ltd Company.

    I can't see that this debt is written off (and I can't believe the TOCG rules would allow such a debt to transfer to a limited entity from an individual).

    He still owes the money. Whether as a person or a company, I don't know, but the money is surely still owed.

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