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?

But @Wham83 they weren’t “contacting the wrong person “

They were contacting one of the right people

How long have you been with him? Trust him?

and this has been going on for years?

Resign my husband is exactly the same. You won’t change them just waste time nagging and getting more frustrated.

Remove yourself and any associated links to the business it’s ruining your credit you’re not having any benefit from it so tell him you want out as it’s causing you problems.

It's not actually that uncommon for people to bury their heads in the sand. I am an accountant, and there are clients where we file returns (sales tax and corporate income tax) and tell the clients the amount to pay, and they...just don't. Even although they have the cash right there in the company bank account. They just wait until the government garnishes the bank account. Costs them hundreds or thousands in penalties depending on the amounts owing, but it's like they just have a mental block about it.

laziness and his dislike of paying money to HMRC

🤔

Don’t know if it’s been said but there’s no such thing as a ‘minority share director’.

you can be a ‘minority shareholder’ - do you hold shares in the company as well?

sounds like you are a de jure director (a director in name only) but this doesn’t necessarily relieve you of director’s duties and liabilities.

He should still have some kind of expenses - fuel, a vehicle, materials? Or is he just clueless and paying more tax than he has to? 🫣

This is the exact situation with DP.

No, he works in an office or from home as and when. There are no company assets, no company car, no file being claimed, no materials. He sometimes purchases things like a printer which would go on the business bank account, but no outgoings as such.

So why not go employed and stop all this silliness. It's not as if HMRC are ever going to say "it's OK, you don't have to pay the tax because you won this month's lucky draw."🙄

Since OP has resigned, has he now got IR35 problems?

He can claim expenses for working from home, as well as mileage for his travel amongst other things.

You both sound fairly ignorant about the business and taxes in general - maybe it would be worth him doing one of HMRC’s free webinars about expenses and taxes.

It’s an umbrella company so he can pay less tax as income via dividends rather than operating as a sole trader.

Every time the debt gets passed to a third party he will be charged fees as this is an expensive process for HMRC. A complete waste of money if the cash is sitting there waiting to be paid.

Resigning is obviously the first step. Hopefully it will shock him into getting his act together. You may also want to remind him you’re his partner not his Mum.

No, he’s not at risk of IR35

So as you’re tapping away on this mumsnet thread, are you saying he still hasn’t settled what’s owed?

So is the payment now 10 months overdue? That’s pretty serious and not surprising they’ve got debt collection involved. He will have been getting late payment letters within the first month of it being overdue and could have paid them with little more than a small fine. 10 months of avoiding paying is a huge problem and very concerning.

It’s paid twice a year, July and dec - this one will be from July.

Get your name and your finances the hell away from his finances.

That’s still three months overdue 😬

You must owe hundreds in interest alone at this point - let alone the actual tax that neither of you have bothered paying.

I wouldn’t be surprised if HMRC open an investigation into the company.

Boyfriend or husband? If it’s a husband I would not resign. You are already tied financially and I would insist on a more active role to protect your interests.

I'm wondering if this company is "just ticking over" like your DH says or if there are debts he hasn't told you about...

I would resign as a director and tell him to close the company ...

This - sounds like he's probably paying (eventually!) more tax than necessary, there's no such thing as 'no expenses' in tax terms, if he does his work somewhere, and uses a phone, computer or posts anything, ever. Get an accountant, or read up on it, he's wasting money.

As your final task as Director, get a total figure from your accountant of all the fines and penalties paid over the last ten years, it may shake him up. Why would you want to hand over that amount to the government if you begrudge paying taxes in the first place, he's been effectively giving himself a tax increase the twit.

Blimey. I do self employed work and, even when my ADHD is raging I make sure to get my tax return and payment in on time! Laziness is costing your DH a fortune in late payments,why the hell would he not just save himself the money and the worry and turn in his accounts on time? My mind is just boggled.