Limited Company Director Change Limited Company Director Change
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  1. #1

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    Default Limited Company Director Change

    Hi Experts,

    I am looking for advise on changing Directorship to other person for my Limited Company(i am the only director currently). I have some debts to HMRC(Corp Tax(One Year) and VAT(6 Months). Will they be transferred to New Director or are they still with me? who will be responsibility to those debts?

    Please help on this.

    Thanks
    Last edited by NotAllThere; 1st June 2020 at 15:25. Reason: Original version restored as it's already been quoted

  2. #2

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    Quote Originally Posted by 514910445 View Post
    Hi Experts,

    I am looking for advise on changing Directorship to other person for my Limited Company(i am the only director currently). I have some debts to HMRC(Corp Tax(One Year) and VAT(6 Months). Will they be transferred to New Director or are they still with me? who will be responsibility to those debts?

    Please help on this.

    Thanks
    Has the new director suddenly developed crono19?

    Anyhoo, who will own the shares ?


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  3. #3

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    Quote Originally Posted by GhostofTarbera View Post
    Has the new director suddenly developed crono19?

    Anyhoo, who will own the shares ?


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    Irrelevant. The director is responsible for the company's debts, they don't have to be share owners other than they need to have the overall control of any legal meetings.

    To the OP, the debt stays with the company regardless of who is in charge. If you haven't learned that You ad YourCo are two entirely different legal entities with their own assets, then what else have you missed? Does the fact that you're worrying about it mean you have taken that money out already?

    The change is easy. Sort out the share ownership and tell Companies House via their website.
    Blog? What blog...?

  4. #4

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    So you've got in trouble, spent money that isn't yours and are looking to offload your problems on to someone else thinking you'll come out of it smelling of roses? Good luck with that.

    If you've given yourself dividends that weren't out of profit they will be illegal and that will stay with you whatever.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  5. #5

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    Quote Originally Posted by 514910445 View Post
    Hi Experts,

    I am looking for advise on changing Directorship to other person for my Limited Company(i am the only director currently). I have some debts to HMRC(Corp Tax(One Year) and VAT(6 Months). Will they be transferred to New Director or are they still with me? who will be responsibility to those debts?

    Please help on this.

    Thanks
    The company has the debt, not the directors.
    Changing directors will not fix this nor will it make it worse.
    If the company is insolvent then the director has a bigger problem in that trading while insolvent is illegal.
    And any potential director would be likely to refuse to take responsibility for that mess.

    The shareholders are a different matter, as they ‘own’ the company. Limited liability protects shareholders, but doesn’t protect director/shareholders who caused the situation so well.

    This is a complex problem to which we on this forum have nowhere near enough details to provide proper advice.
    Seek professional help, starting with your accountant, and then ask more specific questions here.
    See You Next Tuesday

  6. #6

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    Quote Originally Posted by Lance View Post
    This is a complex problem to which we on this forum have nowhere near enough details to provide proper advice.
    Seek professional help, starting with your accountant, and then ask more specific questions here.
    I'd imagine when you are trying to get out of situation you've made yourself without any liability he doesn't want to go to a professional as he knows they probably wont be interested in advising people how to cut and run.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  7. #7

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    Quote Originally Posted by northernladuk View Post
    I'd imagine when you are trying to get out of situation you've made yourself without any liability he doesn't want to go to a professional as he knows they probably wont be interested in advising people how to cut and run.
    You may well be right...
    But in that case professional advice is exactly what’s needed. Maybe not sausage machine accountant, but they’re the people who know what to do.
    The best we can do is try and guess the details and offer some occasionally questionable (often very good) advice.
    See You Next Tuesday

  8. #8

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    Hi friend

    I can give you £500 for drugs if you become director in my company and I walk away

    Friend - yes please

    HMRC - hold my coat


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  9. #9

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    Quote Originally Posted by GhostofTarbera View Post
    Hi friend

    I can give you £500 for drugs if you become director in my company and I walk away

    Friend - yes please

    HMRC - hold my coat


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    I have no idea if that would work. But I got £5 that says if it does the OP wouldn’t be asking on here.
    See You Next Tuesday

  10. #10

    Still gathering requirements...


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    Get your Bounce Back Loan, pay your creditors. That deals with the 1st, most pressing issue and is the cheapest way out short of someone giving you £ for nothing.

    (edit: Pay the CT 1st, they charge interest on that one, but not on VAT. You've probably already had the penalties for the VAT anyway, so effectively its not costing any more than lost sleep currently)

    Then... keep trading, paying everything on time (inc. the BBL when it becomes due) or stop invoicing, but keep the business open and keep paying money in yourself (assume no cash in the business) in 'till the BBL is repaid.

    (a 3rd option is to then fold the business in a few months / years and the gov't sorts out the mess with the lender, but by then you'd have repaid the CT, VAT and kept up to date with future liabilities (...right?! do it! Don't make the mistake twice!), so you could argue the loan was valid *now* to get you through Covid and circumstances *then* (i.e. in the future) have caused the business to fail) - not morally good and might still bite you... There will be shed loads of small businesses going under post covid and mid recession, you have to hope that having a clean CT, PAYE and VAT slate together with *some* repayment to the BBL will make you less likely to show up on the IS radar for a closer look. Danger: you might fall fowl of phoenixing if you fold and restart in a shiny new PSC to keep on contracting... Umbrella might be the way to go for you!

    M
    Last edited by mjcp; 1st June 2020 at 13:47. Reason: slpeling

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