Can we do this

[mt2007]

You say could I not carry on as a sole trader. Yes I probley could but how would that work. Would my partner have to go bankrupt? Would I then have to by the business off him or could this be signed over to me, and what would happend to the joing house?

Im so worried

[MelanieGiles]

That's a large difference - surely he was keeping records of takings and purchases and had some idea of what was needed to be set aside for taxes? Is he sure the accountant's figures are accurate?

[mt2007]

Hi. We are part of a franchise group and use there accountants. We do bare min in regards to accounts and send weekly figures adn invoices straight to them. To be honest I still dont know that the figures are correct as we dont understand them. They said it was because we started half way through a year so in theory we had two years profits on the return as well as tax from selling the business. We really dont understand it

[MelanieGiles]

I would appoint an independent accountant to look at this for you so that you do understand why your partner has ended up with such a large tax bill. This can be done quite cheaply, but as you say with two years in one and cessation issues it may not be far from wrong.

Has taper relief been claimed on the investment of monies in the new business? I appreciate I am now getting technical - and stongly recommend you take specialist advice on this. Ray-a is an accountant who regularly posts on the forum, and it is over 20 years since I last sat a taxation exam!

[mt2007]

Hi

I asked my accountant today and apparently, the taper relief of £60,093 on the sale was given?

[mt2007]

Hi guys

thanks for the help so far, but where can we go for help face to face. where really struggling and not sure what to do or where to turn too. We need help URGENTLY. We are in the scottish borders, however our business is on the english side of the border?

[MelanieGiles]

As you live in Scotland, it might suit you better to look at a Protracted Trust Deed rather than an IVA, which I do believe can be proposed with only two creditors and is simpler to propose to your creditors. Jo Rolland who regularly posts on the forum is a debt adviser based in Scotland and she may be able to negotiate with HMRC for you.