2 year old business debt

[Speck1965]

Hi all, Wonder if you good people can advise me on the following........

 

For five years I ran my own small transport business and rented parking space at a local hauliers yard.

 

 

In March 2009 I ceased trading as I wasnt making enough money.

I did not go bust, every body was paid and I folded without any loose ends, or so I thought.

 

Last week the accountant of the haulier where I used to park contacted me to say he had just discovered a month, Jan 2009 to be exact,

where I had not paid my rent. Every other payment was ok.

This come as a surprise to me because I usually paid the invoices as soon as I got them,

but checking back I cannot find a record where I paid that particular month.

 

The problem is that my accounts have been finalized and all VAT and taxes due have been paid.

If this guy demands payment I cannot now claim back the VAT or offset the invoice against tax liability.

 

I suspect I am stuffed and will have to pay but the 2 year delay is annoying and has caused me expense.

 

Any advice please?

[cerberusalert]

Was it a Ltd company, was it dissolved and is the invoice in the company name or were you responsible personally?

[Speck1965]

Was it a Ltd company, was it dissolved and is the invoice in the company name or were you responsible personally?

 

I was sole trader.

[cerberusalert]

That's a shame, it means you're personally liable.

 

If this guy demands payment I cannot now claim back the VAT or offset the invoice against tax liability.

 

Can't you claim it on this years tax returns, as the invoice will be dated this year won't it?

[Speck1965]

No as I have ceased trading and am a PAYE employee.

[cerberusalert]

Have you checked your bank statements to see whether or not it has been paid?

[Speck1965]

Yes, unable to find any evidence that I paid it. I suspect they forgot to send me an invoice for that month, or it was lost in the post.

[cerberusalert]

By the look of things it seems you're lumbered with it. Unless anyone else has any ideas?

[Speck1965]

He has cost me money by delaying for 2 years so surely I can deduct some for my losses? Also, what VAT rate should I be charged, todays rate or the rate applicable in Jan 2009?

[cerberusalert]

Why don't you make him a full & final offer?

[Speck1965]

Might do, just waiting see how hard he is going to chase me.