"Trading As" who is liable?
Discussion
Hi all
I did a bit of trading over the last 2 years under a limited company name. Having stopped trading a few months ago, i'd received a letter from the county court regarding a vehicle that had gone wrong and i got in touch with the buyer and explained the situation that i was no longer in business. At the time hadn't struck off the company or closed it down but the HMRC was aware it wasn't trading.
Long story short they came after me for £750 in repair bills and having thought it'd not matter with it being all in the company name and since it's no longer in business...today i received a letter ordering me to pay the outstanding costs. However, the defendant name (my company) has been changed to "my actual name" Trading As "my company name".
Does this affect me personally now? Not sure how to go about this as the buyer is totally unresponsive and have tried to resolve it with them and i'm really starting to worry now.
Any information is much appreciated TIA
I did a bit of trading over the last 2 years under a limited company name. Having stopped trading a few months ago, i'd received a letter from the county court regarding a vehicle that had gone wrong and i got in touch with the buyer and explained the situation that i was no longer in business. At the time hadn't struck off the company or closed it down but the HMRC was aware it wasn't trading.
Long story short they came after me for £750 in repair bills and having thought it'd not matter with it being all in the company name and since it's no longer in business...today i received a letter ordering me to pay the outstanding costs. However, the defendant name (my company) has been changed to "my actual name" Trading As "my company name".
Does this affect me personally now? Not sure how to go about this as the buyer is totally unresponsive and have tried to resolve it with them and i'm really starting to worry now.
Any information is much appreciated TIA
It's always difficult to comment on matters of this nature without knowing the full details but I hope this helps.
Only you will know if your Company was Limited (formally incorporated with Companies House). Normally the term 'trading as' refers to Sole Traders. As a Sole Trader, you're personally liable for any debts incurred within that business. You say the letter you received refers to the 'trading as' name which makes me think you were trading as a Sole Trader. You also say that HMRC were aware that you had ceased trading. This also makes me think of Sole Traders rather than Limited Companies because, whilst you would have some correspondence with HMRC if you closed a Limited Company, it would be Companies House that you'd inform to confirm the Limited Company had ceased to trade.
Limited Company by definition means the Liability of the Directors of the Company is Limited. That's assuming that you were acting responsibly as the Director of that Company (as defined by the Companies Act 2006). You can find a basic overview of those responsibilities here:
https://www.gov.uk/running-a-limited-company
And a more detailed overview here:
https://www.legislation.gov.uk/ukpga/2006/46/part/...
You said that the company hadn't been 'struck off' so I assume it was still 'active' according to Companies House? If so, then there would still be some liability. If you weren't acting responsibly as the Director, then you might find you'll have some personal liability; that's down to the courts to decide.
Only you will know if your Company was Limited (formally incorporated with Companies House). Normally the term 'trading as' refers to Sole Traders. As a Sole Trader, you're personally liable for any debts incurred within that business. You say the letter you received refers to the 'trading as' name which makes me think you were trading as a Sole Trader. You also say that HMRC were aware that you had ceased trading. This also makes me think of Sole Traders rather than Limited Companies because, whilst you would have some correspondence with HMRC if you closed a Limited Company, it would be Companies House that you'd inform to confirm the Limited Company had ceased to trade.
Limited Company by definition means the Liability of the Directors of the Company is Limited. That's assuming that you were acting responsibly as the Director of that Company (as defined by the Companies Act 2006). You can find a basic overview of those responsibilities here:
https://www.gov.uk/running-a-limited-company
And a more detailed overview here:
https://www.legislation.gov.uk/ukpga/2006/46/part/...
You said that the company hadn't been 'struck off' so I assume it was still 'active' according to Companies House? If so, then there would still be some liability. If you weren't acting responsibly as the Director, then you might find you'll have some personal liability; that's down to the courts to decide.
Hi all thanks for the input
I am the director of the company, it is incorporated with companies house with a company number.
I did attend the preliminary hearing and was asked to provide evidence to prove the faults weren’t there at the time of sale. PDI reports and such had been thrown out since our premises was sold and we had to leave. Only purchase & sales invoices remain for tax purposes.
I didn’t attend the actual hearing which went against me for obvious reasons making the company now liable.
In no way did I act as a sole trader, how would I go about rectifying this..am I to write to the courts with proof of the company being limited?
I am the director of the company, it is incorporated with companies house with a company number.
I did attend the preliminary hearing and was asked to provide evidence to prove the faults weren’t there at the time of sale. PDI reports and such had been thrown out since our premises was sold and we had to leave. Only purchase & sales invoices remain for tax purposes.
I didn’t attend the actual hearing which went against me for obvious reasons making the company now liable.
In no way did I act as a sole trader, how would I go about rectifying this..am I to write to the courts with proof of the company being limited?
dave828 said:
Hi all thanks for the input
I am the director of the company, it is incorporated with companies house with a company number.
I did attend the preliminary hearing and was asked to provide evidence to prove the faults weren’t there at the time of sale. PDI reports and such had been thrown out since our premises was sold and we had to leave. Only purchase & sales invoices remain for tax purposes.
I didn’t attend the actual hearing which went against me for obvious reasons making the company now liable.
In no way did I act as a sole trader, how would I go about rectifying this..am I to write to the courts with proof of the company being limited?
I would provide evidence that the Company is Limited. If the Company still has 'assets', then these might be taken into consideration as part of the liability. It's a pity you don't have PDI records as they might have been useful (keeping electronic records is always advisable). You said that the Company is still 'active'. If the Company had been 'struck off', then this might have been a different conversation. All I can say is I think it's up to the courts to decide.I am the director of the company, it is incorporated with companies house with a company number.
I did attend the preliminary hearing and was asked to provide evidence to prove the faults weren’t there at the time of sale. PDI reports and such had been thrown out since our premises was sold and we had to leave. Only purchase & sales invoices remain for tax purposes.
I didn’t attend the actual hearing which went against me for obvious reasons making the company now liable.
In no way did I act as a sole trader, how would I go about rectifying this..am I to write to the courts with proof of the company being limited?
dave828 said:
I did attend the preliminary hearing and was asked to provide evidence to prove the faults weren’t there at the time of sale. PDI reports and such had been thrown out since our premises was sold and we had to leave. Only purchase & sales invoices remain for tax purposes.
If you attended the first hearing you must know in what name the claim was issuedPlease don't say you subsequently threw all the info/documentation away.
dave828 said:
I didn’t attend the actual hearing which went against me for obvious reasons making the company now liable.
Why not? Did you properly contest the claim and file a defence?The name of the defendant can't be arbitrarily changed. It would need the permission of the court for substitution.
Or the claimant withdrawing the claim and commencing a new one (against you rather than your company).
Either way you should have had notification thereof.
If you didn't attend/defend it is likely that the claimant has obtained judgment in default.
You can apply for it to be set aside but it will cost you £255. You will also have to give a cogent reason.
So make sure you have done your homework first (i.e. you have one which will stand up)
The wrong defendant could well be such, especially if you hadn't been informed about any application for substitution.
If the 'letter' is a judgment order against you it isn't going to go away so you need to act or risk the claimant applying to enforce it..
However we are missing some important facts. You need to contact the court asap to find out how/why the defendant has been changed.
Then you can decide the best course to follow.
dave828 said:
Hi all thanks for the input
I am the director of the company, it is incorporated with companies house with a company number.
I did attend the preliminary hearing and was asked to provide evidence to prove the faults weren’t there at the time of sale. PDI reports and such had been thrown out since our premises was sold and we had to leave. Only purchase & sales invoices remain for tax purposes.
I didn’t attend the actual hearing which went against me for obvious reasons making the company now liable.
In no way did I act as a sole trader, how would I go about rectifying this..am I to write to the courts with proof of the company being limited?
So when you were sued you didn't say to the court "Hang on that is not right" at a hearing? It should be Company X and that no longer exists..I am the director of the company, it is incorporated with companies house with a company number.
I did attend the preliminary hearing and was asked to provide evidence to prove the faults weren’t there at the time of sale. PDI reports and such had been thrown out since our premises was sold and we had to leave. Only purchase & sales invoices remain for tax purposes.
I didn’t attend the actual hearing which went against me for obvious reasons making the company now liable.
In no way did I act as a sole trader, how would I go about rectifying this..am I to write to the courts with proof of the company being limited?
ETA - did you sell the car with a receipt? Does it state the company name and number?.
At the preliminary hearing the defendants name was in that of my company (XXXlimited)
The letter I received (general form of judgement or order) ordered that
1) judgement for the claimant is to be paid
2) the name of the defendant is amended to xxx trading as xxx
I will get in touch with the courts and send over evidence. I’m shocked at the fact the defendant name was changed at the very last minute.
My company details (company number, vat reg no, address) were all on the invoice supplied to the customer and given to the courts.
The letter I received (general form of judgement or order) ordered that
1) judgement for the claimant is to be paid
2) the name of the defendant is amended to xxx trading as xxx
I will get in touch with the courts and send over evidence. I’m shocked at the fact the defendant name was changed at the very last minute.
My company details (company number, vat reg no, address) were all on the invoice supplied to the customer and given to the courts.
In order to amend the name of the Defendant in that way, it is likely the Claimant made an application to be heard at the hearing. You will have been served with a copy of this application as a part of their witness statement ahead of the hearing - why did you not object to it then?
As it stands, you have a Judgment against you personally and you need to make an application to set it aside immediately - the Court do not like delays.
As it stands, you have a Judgment against you personally and you need to make an application to set it aside immediately - the Court do not like delays.
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