Thread: VAT Debt

Hi all,

Here is my situation.

I closed my business in August 2008. My current debt including fines etc is £42000 approx. The business was run as a partnership with another person. The other person who was my partner has sold 2 of his properties and now would not reply to my phone / messages / email and may have been absconding.

I offered HMRC £500 a month but they have rejected and said that they might consider a 2 year plan at roughly £1750 a month.

I own a property owned in joint names with my wife on which roughly 88000 GBP mortgage is outstanding and the current market value may be between 120K to 130K. I have 2 children

I have paid of most of my personal debt. I have an outstanding loan with Egg of 9000 which is currently in dispute due to mis-sold PPI.

There were other business debts with electricity (£7000) , Gas (£2000), Business Rates ( £4000) and few small ones. But no one is chasing them at this stage, although they might come after me at some stage. I have not intimated my new address to them.

I have a work contract until July this year which pays for my family's living expenses. My wife was made redundant earlier this year and is currently a housewife.


My question is:

Is there any way I can separate my 50% share of VAT dept from my partner

If I am made bankrupt will my house be at risk.

Should I consider IVA

Any other suggestion will be most appreciated.

As I see it the answer to the first question is no.
I also assume that you don't have limited Company status, therefore as a sole trader or partnership your house would be seen as an asset in the event of bankuptcy.

I am Scottish based and not fully conversant with IVA's, but I understand that they are similar to Scotish Trust Deeds. However, I seriously doubt whether HMRC would agree to such a step. Nevertheless, in any event the house once again would be viewed as an asset,

Perhaps someone with more knowledge of IVA's could confirm or correct.

What kind of business was it? ie ltd company etc

My business was a partnership. Not a limited company.

|Was this partnership set out in some legal framework?

Originally Posted by kurvaface

|Was this partnership set out in some legal framework?

There was a standard Partnership Agreement with a 50/50 share. Should I be looking for any specific clauses in there.