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?

Being a company director is a serious thing. If you don't want the responsibilities, resign.

It's bizarre that he isn't paying the money on time even if when I'd there. Especially the VAT man - that's the absolute first person you pay of any debts that you have. Can your accountant have a serious word with your DH? Because my suspicion is that the money is not, in fact, there, and he may be doing something dubious with the accounts.

OP, even if you resign you will still be responsible for financial problems and debts that built up while you were director - you can’t just fill in a form and wash your hands of everything.

Whatever debt the company owes to HMRC is just as much your responsibility as it is his. Saying “I didn’t know” won’t cut it I’m afraid.

This is correct
The Company Accounts are not the same as a Bank Account. I have just signed off our Company Accounts and they don't reflect the money we hav in the bank today
I find it really hard to believe anyone would have the money to pay HMRC and just not

You’d be surprised 🫣

They can contact any Director. All Directors of the company have the same responsibility for the functioning of the company, main director isn't a concept.

No I understand that, but it was a debt collection company not HMRC directly. He will pay the debt to HMRC today. And that’ll be it until the same thing happens when he doesn’t pay on 31st dec.

if I resign now then I’ll be liable for the debt up until this point, which is a better position that anything after this point. I can’t continue like this.

i know the money is definitely there in the bank account, he just can’t be bothered paying it until it goes to debt collection and he gets harassed and I fall out with him. I can’t get my head around it. He’s not like this with our personal finances.

I doubt that you would be able to resign from this debt though, one of the perils of having a family member named for tax purposes.

You can and should resign as director but, yikes, i find it difficult to believe he can be trusted in other aspects of your life when he can’t take care of basic business matters that impact you both.

This whole thing sounds shady, why are you a director of a company that you literally have no involvement with, where you can’t even access the funds or take calls about the business finances? I’d be worried about what he’s slapping your name on tbh. It’s not normal for someone who owns a small business to constantly be late with their legal obligations, this is his job and it screams cash flow issues.

Theres a wonderful thing called a direct debit..

If it’s going debt collection it’s well past due and he’ll be accruing interest on it, why is he just throwing money away to HMRC?

Just to add @Wham83 are you absolutely sure you know all about his personal finances? Have you got access to his credit file?

My STBX started off just like yours with respect to his limited company, then it moved on to personal directors loans and ultimately bankruptcy. He has been shady with finances and it has ultimately cost our marriage- currently mid divorce as I couldn’t take it any more.

Who are the 94% voting YANBU? Do they, like you, not understand what a director is? You’re a director, you’re responsible. Either act like a director and fulfil your responsibilities, or resign.

The problem isn't that the company 'just ticks over'. The problem is that, for some reason, your 'director' husband would rather incur repeated debts, although he has the money to pay the bills. He sounds infuriating and either shady or dim. I don't know what's worse.

Next time you sign something, read what it says. Probably especially if it comes from him.

Sadly lots of people are oblivious when it comes to how companies and HMRC operate.

As a director you’re still responsible for certain debts that are owed by the company though - the fact that the debt has already been referred to a collection agency isn’t good news for either of you.

He must be very comfortable with other sources of income to not care about throwing money away in debt interest and charges. Sounds crazy.

He is an idiot. He is inviting further scrutiny from HMRC, plus you are legally a director of the company so you are liable. What a shambles.

Or he’s just an utter moron.

If you go down the road of not paying your taxes and getting into debt, you’re basically handing HMRC an invitation to come and investigate your tax returns 🫣

HMRC charge around 8% on Debt I think and there are surcharges
Your H is either an idiot or does not have the money to pay them - probably both

Agreed with other posters, cut all ties with this business. The money he's paying in fees could be either reinvested into the company or go to your family. Has he just lost passion for it if its only ticking over ?

That’s cobblers about it being easier to have two directors than one. He’s been bullshitting you from the off and you’ve gone along with it for ease or whatever benefits it brings.

It's unlikely you'll be personally responsible for the debt. I'm assuming you're an LTD company, so unless fraud or wrongful trading, it's doubtful, and the business is still a going concern, with money in the bank.

You have two options: remove yourself as a director or take on a more significant, paid role in the administrative side of things. Starting by adding you to the banking details (if not already) for the business account.

He does sound like a lemon mind, who likes paying extra charges, HMRC are not known for their kindness, espically to repeat offenders.

You can automate all of this, MTD (Making Tax Digital) set up direct debits, etc.

HMRC is also starting to pass on debts to collection agencies well before they would have traditionally. This is outsourcing in a way, as they are no longer dealing with bad debts, which frees up their time.

Where as I agree the tax must be paid, and a high priority, if your experiencing genuine difficulty, its more then acceptable to have a payment plan in place. Hmrc arent always the priority if you have had issues, they can wait a couple of months for their money!

Not a priority??? How much money is he wasting on late payment fines and debt interest payments? For a company that is only just ticking over, not wasting large sums of money out of sheer laziness should be a massive priority!