Quantcast

Should I pay money back from when I was self employed

SalonGeek

Help Support SalonGeek:

beauty bella

Member
Joined
Jul 12, 2012
Messages
6
Reaction score
0
Location
south
Hi just wanted some advice. I was self employed from 2008-2012 the lady I rented from left me to look after the salon back when I first started. I worked the rent out wrong and ended up owning her money. She is trying to chase me for this money now it's 3 years later and I am on maternity leave so couldn't afford it anyway. My question is what can she do if I refuse to pay it?
 

Jen889

Well-Known Member
Joined
Nov 15, 2011
Messages
1,646
Reaction score
198
Location
Somewhere in Canada
Did you not have a set rent? Did she and/or you not realize the mistake at the time? Does she have proof that the rent you paid wasn't enough?
 

Sparkle Treats

Well-Known Member
Joined
Jul 6, 2014
Messages
186
Reaction score
30
Location
Bensville NSW Australia
And it's taken her this long to work it out???
Pfffffffft
Bad luck!

Sent from my SM-N915G using SalonGeek mobile app
 

Cholo

Well-Known Member
Joined
Jun 22, 2012
Messages
290
Reaction score
0
Location
North West
What would you expect if the situation was reversed and she owed you money?

If I couldn't afford it, I'd offer a repayment plan.
 

surf girl

Well-Known Member
Joined
Jul 22, 2013
Messages
5,709
Reaction score
2,400
Location
Blackwood
Is she only now chasing for the money or has this been going on since it happened? How much are we talking about here? As said above do a repayment plan if it's an ongoing issue otherwise, if it's out of the blue ask her for proof and get legal advice on what to do, citizens advice should be able to help you, you may have overpaid tax too if you owe her money so it's worth looking into
 

Haircutz

Super Moderator
Staff member
Moderator
Premium Geek
Joined
Aug 11, 2011
Messages
10,419
Reaction score
6,657
Location
West Cork, Ireland
Answer to your question - she will need to prove you are in breach of contract and owe her this money. Depending on how much, she can issue a claim via the County Court.

If you know you owe her this money you could negotiate an amount to write off the debt? However, take legal advice first. She will need to back up her claim with paperwork.

If you owe her money and she's only just realised, presumably that means her income is higher than the figure she notified to HMRC. Wonder if she's planning to notify them too?
 

BettyBaa1994

Well-Known Member
Joined
Jun 2, 2014
Messages
287
Reaction score
93
Location
Cheam
Although the statute of limitations is 6 years for debt collecting and a person can go to the small claims court to collect money for 6 years if the amount is extremely low i.e a few hundred pounds your landlady will probably not enforce anything.

I would furthermore ask her what evidence she has to suggest you shortchanged her asking for it to be presented clearly. I struggle to see how someone can JUST pick up on an outstanding debt after 3 years. Most businesses must fill out tax forms and do yearly accounts. Everything seems a bit fishy to me.

I would furthermore notify her you will be contacting HMRC on both of your behalves as this change in money owed could effect the amount of tax you paid. Although normally a tax return cannot usually be revisited However, under what are called discovery provisions, it is possible for the tax office to re-open tax returns that are twenty years old if they suspect fraud or neglect. For example on incomplete disclosures which this would/ could be.

In most instances, the statute of limitations for an audit concerning under reported income is three years from the year the income should have been reported on the tax return of the person who earned it. So she could have done this to avoid certain taxes and by not declaring the change depending on the amount, did you sell the business e.t.c it could seem like you aided in fraud.

Maybe I am over thinking this but good luck and try looking into getting advice from citizens advice, HMRC.
 

WaxGirl

Well-Known Member
Joined
Jul 21, 2008
Messages
1,485
Reaction score
160
Location
UK
If you owe her money, then pay it back

I don't really see why you would consider doing anything else?

Business honesty & integrity shouldn't require second thought
 

BettyBaa1994

Well-Known Member
Joined
Jun 2, 2014
Messages
287
Reaction score
93
Location
Cheam
If you owe her money, then pay it back

I don't really see why you would consider doing anything else?

Business honesty & integrity shouldn't require second thought
It will not be that simple as she was self-employed and in regards to HMRC it could be seen like both parties were doing something suspicious. I would be thinking this as how can a business owner NOT tell after 3 years. You have an accountant and therefore yearly discrepencys' should have been easily seen.The poster needs to be contacting HMRC for both parties to get it sorted out.

Furthermore just because a person says that you owe them money does not make it true...especially in business. For example my ex-boss created all these fake expenses to get out of paying my holiday pay.

I would ask for evidence and why in 3 YEARS you have not contacted me regarding outstanding fees and HOW on earth you figured it out now.
 

WaxGirl

Well-Known Member
Joined
Jul 21, 2008
Messages
1,485
Reaction score
160
Location
UK
It will not be that simple as she was self-employed and in regards to HMRC it could be seen like both parties were doing something suspicious. I would be thinking this as how can a business owner NOT tell after 3 years. You have an accountant and therefore yearly discrepencys' should have been easily seen.The poster needs to be contacting HMRC for both parties to get it sorted out.

Furthermore just because a person says that you owe them money does not make it true...especially in business. For example my ex-boss created all these fake expenses to get out of paying my holiday pay.

I would ask for evidence and why in 3 YEARS you have not contacted me regarding outstanding fees and HOW on earth you figured it out now.
op said in her original post that she had worked it out wrong and knew she owed her money
 

BettyBaa1994

Well-Known Member
Joined
Jun 2, 2014
Messages
287
Reaction score
93
Location
Cheam
op said in her original post that she had worked it out wrong and knew she owed her money
What I am trying to say it will not be that simple as just pay back depending on the amount especially if it is over a grand or so. The OP will have to go through hmrc to check if she is owed a tax refund and the other party will have to explain.

I just do not get how someone can 'work' it out wrong and then claim after 3 years especially with rent as you should be giving invoices. It is illegal in England and (I think the whole of the U.k )under the landlord and tenant act 1985 to not provide an invoice or rent book. Either the OP knew at the time they had underpaid at the time which is terribly dishonest, rent was truly underpaid which could be possible as some contracts apportion in business rates, lighting bill but if she 'genuinely' worked it out wrong the landlord failed to give invoices/ pay the taxes for rental income which is illegal. .http://www.legislation.gov.uk/ukpga/1985/70

She furthermore needs to sit down with the landlord and discuss matters and get everything in writing. This is why I stated she needs evidence and be contacting the HMRC this could be a really serious offence and is not as simple as 'just paying back money.'
 
Last edited:

surf girl

Well-Known Member
Joined
Jul 22, 2013
Messages
5,709
Reaction score
2,400
Location
Blackwood
If you haven't noticed the op hasn't actually commented since her initial post.... At least give her the chance to answer some of the questions put to her before continuing on your quest to prove everyone wrong... Clearley there is some bits missing from her story here
 

Latest posts

Top