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Scottish Trust Deed Forum
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Topic starter
27/02/2012 9:38 am
Hi All
I wonder if anyone here can help with the following?
I am in a 3 year PTD since June 2010. I hope to have this settled early by a third party.
Previously. I was a director of a limited company. I had drawn from the company a director's loan. This was originally intended to be a directors bonus, but the company did not make a profit. Foolishly, I had drawn this from the company to help me meet my commitments to my creditors. This leaves me with a personal tax liability for the year prior to entering the trust deed.
A couple of questions:
Is the debt to the Revenue included in the trust deed? It was not specified, or known about, at the start date.
If my trust deed is settled by a third party. Can the Revenue make me pay the tax arrears?
I am looking to enter employment with another firm in the near future.
Any help or guidance will be greatly appreciated.
27/02/2012 12:17 pm
Hi Bowershall.
I think this debt will become a creditor within your trust deed, but lets wait and see what Mark/Kevin/Shona/Chris advise.
If that's the case, settlement of the trust deed by a third party (or not) shouldn't make any difference to the situation.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
27/02/2012 12:25 pm
That's is what my accountant thought too.
He does not specialise in insolvency. I thought I would seek advice through the forum.
I suppose when the trust deed was advertised in the Gazette, the Revenue would have been aware of the situation.
The only worry was that the tax liability was not specifically included in the Trust Deed.
Topic starter
27/02/2012 1:18 pm
Another issue I've just thought of!
If the creditors agree, there is a possibility that my TD will discharged early. Does this have implications for the Tax arrears? Will they be able to pursue me if I am discharged? I think I read elsewhere that all debts prior to the trust deed being signed are incorporated in the deed.
I hope that is correct!
27/02/2012 1:46 pm
I think that's going to be correct Bowershall, but lets see what the experts say to be sure.
I don't think it matters, but it is a little different given that you, HMRC, and your trustee had no idea about the issue with the taxable directors loan for quite some time after your trust deed began.
Presumably your company is also a creditor of yours as well if it still exists?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
27/02/2012 3:59 pm
Yes, the company is a creditor. (The directors loan account).
I'm sure that is how we need to account for it.
Like you say, let's see what the experts say.
Topic starter
28/02/2012 7:44 pm
Sorry to bump this topic. But I am keen to clarify the situation before I speak again with my Trustee.
28/02/2012 8:05 pm
Hi Bowershall
Yes, it will be included. Belts and braces approach would be for your trustee to speak with the revenue, however the debt is due to the company and I am guessing would be pursued if the the company was liquidated.
That said, the debt is pre trust deed, so I see no ability to pursue this.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
28/02/2012 8:34 pm
Thanks again Mark.
That really helps put my mind at rest.
The business is still trading.
