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?

My fear would be what else has he been lax about financially. HMRC will call upon debt collection as a very very last resort as they are not inclined to spend tax payers money on such measures. I’d be concerned that he will be flagged as a person to be investigated.

Do you have a joint account?

Yes, we have a joint account and I manage all of the household bills etc, we both pay into the joint account to cover household expenses. There isn’t anything else he’s lax about, his personal finances are all upto date, no credit cards etc. it’s all taken care of by DD so no thought needed, but with the tax and vat he has to physically log on and pay it via HMRC or companies house etc, and that’s where it falls down - he just doesn’t do it even though he knows it needs to be done. There are 100 other things to do that it gets pushed to the back of the pile to do later, and then he forgets until reminders come through and I get annoyed.

OP - You can now get all this set up to be run via direct debit.

Are you sure he's even paying the correct amount of tax? With that kind of attitude I'd be worried he just doesn't like paying them.

@Wham83 just a note of caution once you sever your ties with the company.
It sounds highly unlikely he will change. So as you won't get contacted in future, the debts will escalate further to the point that you have bailiffs at the door.
I couldn't put up with that. We all hate paying tax but it's part and parcel of running a business. If he can't be arsed he needs to get a job instead.

You can pay HMRC by direct debit.

So..given that you've mentioned that your DH has an accountant, are you sure they really aren't putting ANY expenses in for the business, against its profits? If they really aren't, you both should seriously consider replacing them, they are charging for their expertise, but cannot be providing you a basic level of service, and will be costing you extra tax each year.

Me and DH are Contractors and we have plenty of "expenses", if his Accountant isn't on the ball he will be paying more tax than he needs to.
I also wonder why you are so confident that IR35 isn't an issue

He claims genuine business expenses such as hotel stays when he’s working away, computer expenses, etc, but he chooses not to claim mileage or mobile phone type expenses.

The contracts he takes are all outside IR35, they are checked to be the case before he takes them.

"Your laziness and inability to get the bills paid has now meant that debt collectors are calling me at my job. Sort your shit out! It's not attractive."

And I'd mean it. Why are so many men so utterly infuriating? I would hate living like this, being embarrassed because he's basically not bothered running his business properly.

Maybe look into IR35 Insurance with IPSE or similar.
I do IR35 reviews and its complicated, DH knows a LOT of Contractors and more than one hs been caught out by "checked" contracts

This is so frustrating!

If he doesn't like paying HMRC tax (understandably in my opinion), then he really should be claiming his travel expenses to reduce his tax bill.

I know you're resigning, but if I was you (I can relate to you in that my DH is also an outside IR35 contractor, but my DH pays what he owes on time), I would make him set me up to be able to make the twice yearly payments on his behalf. I know you've got enough to do with work and children etc., but it won't take long and as he cannot be relied on to do it, it would be better for the family as a whole if you just took charge with this matter.

Just my view!

So he chooses to pay more tax than necessary and doesn't pay it on time?

You've got yourself a smart one there 😂

Has he paid it now OP?

This is serious, debt collection will have been the last resort before criminal proceedings (against you and him)

This makes no sense at all

Some people really should not have a business, Contractors tend to be the worst IME

I think a lot of people are good at the actual job but not the business side.

But that's why you pay an accountant and they help you reduce your tax bill. The fact that this one isn't doing that raises so many questions 🤔

The op says he is lazy and also doesn’t like paying money to the HMRC

And yet he's not claiming all the expenses he could and is paying more tax than he needs to.

He doesn't sound lazy to me - more like a total idiot.

DP is now home from work and has contacted HMRC and paid the debt - it was that simple. He is apologetic. I think it’s hit home with him that I got the call due to his laziness in paying it. He is understanding and agrees with me resigning as director, it’s not something I ever wanted, had time for, had an interest in, or fully understood for that matter. He assures me he will take it all more seriously and pay what’s owed on time from now on. I can only hope that it actually happens and the next payment is made prior to 31st dec.

has he not said this every year for the multiple years he’s been doing this?

next year he will be contacted and you won’t know until the bailiffs turn up

I’ve never resigned before though have I? Maybe it’s the kick up the backside he needs to wake up to it all

I suspect that he just won’t tell you that he’s being chased and contacted until the shit really hits the fan

at least remaining director you can keep track of what’s going on

In your shoes, I wouldn’t trust him and I’d want to remain involved