To be fuming with DP re his business

[Wham83]

DP has a small business, been trading for over a decade. Not a huge turnover, just ticks over. It’s a very small operation, just him but I am listed as a minority share company director on paper only, I don’t have anything to do with the business, don’t take any money out etc, but obviously have to file tax returns via the accountant as I am listed as a director.

DP has a history for as long as he’s been trading of paying tax late and constantly being charged late payment fees by HMRC. It’s been a constant argument between us. He does have the money within the business accounts, he just doesn’t see it as a priority so doesn’t pay and it goes to debt collection…constantly. Well, this morning I’ve received a call on my mobile from a debt collection agency looking to recoup the money owed to HMRC. I have never had any personal debt that’s required debt collection and never received a call like this relating to his company. I felt so embarrassed and humiliated to receive the call. I do not understand why he doesn’t just pay the money on time - it’s there in the business account! I don’t have access to the business account as I am not involved with it, so I can’t pay it for him. It’s tiring to have the same rows and conversations about it every time tax or vat is owed.

AIBU to be fuming regarding the lack of care and for receiving the call?

Can you resign as director? I wouldn't want anything to do with his business.

I am self employed and the one thing I always do, no matter what, is satisfy HMRC

For a decade, when my business account was nigh on empty, when I was in so much pain before and after a hip replacement. Through family deaths, incidents and accidents - HMRC must be satisfied

Your husband is a pillock. You have every right to be angry that his long term laziness and stupidity is affecting your credit ratings etc

Best of luck containing your anger when he inevitably trots out some lame excuse

If resign from the business. As a director you should either have control or if you don’t then you shouldn’t hold this position.

I‘d be quick to distance myself from his business for fear it might negatively impact me.

You're listed as a director.

Either

take over the accounts - it's not onerous if you use something like freeagent and get online access to the bank account. Then you can make sure the accounts are run as you would like them. He must have an accountant to sign off accounts so use them (or try someone like Dolan)

Or

Resign as a director.

I presume you receive dividends or salary and your directorship is part of that and the arrangement is about reducing tax.
But you receive divs as a shareholder regardless and you can be paid just as an employee on the same basis without being a director.

In summary - if you want to help him, take over the accounts; else resign and let Companies House know (you can do it online)

How did the call end?!

And is money very tight in the family? Does he even have the money to pay what he needs to pay?

Why have you stayed as a director of a company that doesn't pay its bills? Did you not understand the legal implications of being a director?

This.
Being a shareholder in a small company has a legal responsibility. It's never just on paper only. You need to either take some responsibility or leave him to it.

You have to resign as Director OR have full oversight.
There are legal responsibilities Directors have that could have serious implications if you aren't aware of them and fulfill them
Many women get put on their Husbands Business as Directors for Tax reasons but its not as simple as that.
As for HMRC they are usually pretty helpful if you call them BUT if you don't see the Bank Account how can you be sure the money is there to pay them?

What did you think being a director was?

You need to either resign or get a grip of things.

In all honesty, no - I didn’t fully understand the implications. It was just easier to register the company with 2 directors rather than 1. I am going to resign, I am so sick of the same situation arising and never resolving.

I voted YABU as this is your debt too. You are a company Director and therefore responsible to HMRC. Either resign (which doesn’t change your liability for the period you were a Director) or pay them. This is your responsibility as much as his.

So how many years has this been going on for?

and you don’t say how the call concluded?

He does have the money within the business accounts, he just doesn’t see it as a priority so doesn’t pay and it goes to debt collection…constantly.

Not the sharpest tool in the box is your husband OP

I was embarrassed, having taken the call sitting at my desk at work. I declined to discuss any information and said said I wouldn’t be willing to discuss information incase it was a scam call - I knew it wasn’t a scam call though as I’ve seen the debt collection letters.

I know the money is there in the accounts as I have to sign the accounts from the accountant. The worst bit is that it’s just sheer laziness, not hardship. He just doesn’t see it as a priority.

Take this as a lesson. You're an adult - act like one. Don't sign things if you don't understand the implications.

Err, what’s your credit score looking like?

The thing is, there’s no such thing as a director “on paper”. You have responsibilities if you’re listed.

So as pps have said, you should either take over the accounts so this gets paid, or resign as a director so it’s not your responsibility any more.

Sitting there saying “I didn’t know” won’t cut it with HMRC or with the courts if anything came to that.

I also agree with those saying the HMRC is the priority to get paid. That’s money that was never yours/ the company’s to keep.

So are they going to call back?
has it been paid now??

I have been naive in it all. When the company was set up I was in the thick of working and raising young children, it was apparently easier to set up a company with a minor and major director than one single director so that’s what happened. I didn’t understand the implications of being a company director, and the business doesn’t turn over mega bucks, just ticks over. But I am so incredibly fed up of having the same conversations and nothing changing that I have no option but to resign and let him get on with it. I don’t want access to the accounts or to play an active role, I have my own job to get own, and running a business is not something I have ever wanted to do.

Being director “in name only” isn’t a thing. You are just as legally responsible as your partner.

I would resign this will be fucking with your credit score.

Its not easier at all - who told you that?
I am concerned that your H has told you all sorts of crap

I told them they are contacting the wrong person and that they would need to call the main director, then ended the call. DP is at work so I called him but he didn’t answer so I sent a very blunt WhatsApp telling him what I think of the situation

How long have you been married to him?
do you trust him?
is the family comfortable financially? Do you work?

Company debt shouldn't impact that.
My company had HMRC debt a few years back but it has never impacted me personally