Debt being chased as a sole trader but was LTD at the time

[rich12]

I set up a company in 2009 and was a sole trader until mid 2010 when it was incorporated and had used the company once in that time. (all paid etc)
I then used them again in 2015 (windscreen repair) but was obviously LTD by then. They had my old details on file so billed it as 'trading as...' rather than XYZ LTD.
I disputed it as the bill for the excess was £100+vat but on the invoice it was £139.99. They never changed it or contacted me except to send payment reminders.

I haven't heard a thing from them for a long time and have also moved house 4 times since 2015 so I have no idea if they were still chasing.

Fast forward to today and i've just got a letter from a debt company asking for payment within 7 days etc.
I have no problem paying the correct amount (never have) but now they want a total of £205.68.
The company doesn't exist anymore but obviously they've got it as a sole trader so i'm still liable rather than it being a LTD.

I've tried calling them but apparently there is only one person who can deal with it and she's not in.
I just want to know where I stand with being liable etc.

[anonymous-user]

Did your Ltd company pay them? Do *someone* still owe the money?

[TooMany2cvs]

So you were sent an invoice at the time which was issued to you personally (t/a...), and didn't query it or request it be reissued to the limited company?

Sounds like it is indeed you that's legally liable for the debt.

[megaphone]

Do you have any paper trail re you disputing the original invoice amount? If not it will look like you just ignored the invoice. See if you can negotiate a deal, but I doubt you'll get much off, the deb collection agent will want their fee. Don't ignore it or it will go up even more.

[rich12]

The only time I queried it was when I received the invoice originally. Told them the amount was incorrect and it needed to billed to the LTD company. This was just a phone call over 2 years ago.
No communication since then.

[The Mad Monk]

Have they taken you, or the company to court?

Did you book the job as yourself or the company?

[rich12]

No, no court etc.

It was sorted through our insurance company and we just had to pay the excess direct to them.

As I said, I have no problem paying the original correct amount. Whether they tried to contact me through post (as i've said i've moved 4 times since then) but seeing as the invoice they attached is still the incorrect one, I assume not.

[KevinCamaroSS]

OP, your first post is very unclear. Are we talking about a bill to repair the windscreen of a vehicle?

If so, who is the registered keeper? If it is you personally, then you will be the person they will chase. If the company, then the company is the first port of call.

[Mandat]

rich12 said:

The only time I queried it was when I received the invoice originally. Told them the amount was incorrect and it needed to billed to the LTD company. This was just a phone call over 2 years ago.
No communication since then.

IANAL, but I suspect that this is where you are going to come unstuck.

With no proof or papertrail from you that you disputed the incorrect invoice, it just seems that you are trying to avoid making payment altogether.

When you do get to speak to someone at the debt collectors, what are you going to show them when they ask you for proof that the invoice was disputed from the begining?

[Grandad Gaz]

I'm afraid the original amount was correct.

I had a similar experience regarding a new windscreen a few months ago. You pay your £100 excess plus the VAT on the whole cost of what the windscreen company charge your insurer. God knows why?

[Countdown]

Grandad Gaz said:

I'm afraid the original amount was correct.

I had a similar experience regarding a new windscreen a few months ago. You pay your £100 excess plus the VAT on the whole cost of what the windscreen company charge your insurer. God knows why?

I think it's because insurers can't reclaim VAT (or something....)

[surveyor]

As above...

Unless you are not vat registered. It is then an irrecoverable loss that your insurers should pick up.

Had this argument over a windscreen when flatrate meant I could not recover. It was a bit sticky to be honest but the insurer quickly agreed

[rich12]

Grandad Gaz said:

I'm afraid the original amount was correct.

I had a similar experience regarding a new windscreen a few months ago. You pay your £100 excess plus the VAT on the whole cost of what the windscreen company charge your insurer. God knows why?

So the £39.99 is the VAT from the total windscreen cost?
When I queried it, they never said that. She just said she'll look into it and issue a new invoice.

[Glassman]

Confused.

The question appears to be 'now that I'm a sole trader, can I get away with it?'

Now the OP is questioning the amount because he now realises that he might have to pay it regardless...

It's how I'm reading it.

(The excess + VAT on the total cost of the job is correct whether 'she' explained it or not).

[Red Devil]

Glassman said:

Confused.

The question appears to be 'now that I'm a sole trader, can I get away with it?'

Now the OP is questioning the amount because he now realises that he might have to pay it regardless...

It's how I'm reading it.

No, he is saying that the second time he used them he was trading as incorporated, not sole. The supplier didn't update its records. His Ltd company may well 'get away with it', as your somewhat snide comment implies, due to the supplier not sorting things out as its end (see below). One might legitimately ask why the OP appears not to have informed them at the time that his status had changed? He has told he did after the invoice arrived, so the supplier should have resolved the issue one way or the other at that point. Given that the invoice was for the excess +VAT an insurance claim was involved. Was his insurer aware of the change of status?

Glassman said:

(The excess + VAT on the total cost of the job is correct whether 'she' explained it or not).

The amount and the correct entity to be billed are two separate issues. They shouldn't be conflated.

rich12 said:

Grandad Gaz said:

I'm afraid the original amount was correct.

I had a similar experience regarding a new windscreen a few months ago. You pay your £100 excess plus the VAT on the whole cost of what the windscreen company charge your insurer. God knows why?

So the £39.99 is the VAT from the total windscreen cost?
When I queried it, they never said that. She just said she'll look into it and issue a new invoice.

Do you have a record of her name and when it was? If the supplier was on notice that it was in the wrong name (and you would have paid it given that the VAT element was actually correct) she has failed to resolve the matter and it should never have been passed to a DCA.

Golden rule: NEVER deal with a DCA the telephone. In writing only (you need an audit trail). If they phone you, tell them you won't discuss it via that medium: by correspondence only.  From then on don't answer/block the number.

Write to DCA informing them that the invoice is disputed (wrong entity) and it must refer it back to the creditor. If the latter is no longer in business then it's a dead duck. This assumes that the debt has not been sold (that requires a formal Notice of Assignment from the original creditor - i.e. the OP's' supplier).

Notwithstanding the above, you haven't exactly helped your cause by not having kept at the supplier to sort out the billing. I assume your business address is not your home. If not, your frequent moves haven't helped either.

Do this the correct way and you should be able to avoid any stress.

[rich12]

Just an update. It's all sorted.

I rang the solicitors/debt collection and told them exactly what had happened.

He told me to just pay the original amount and he doubts very much they'll take it any further for the remaining amount.

Just for clarity, I never tried to get away with it. A very small bill from 2 years ago that never entered my mind after the phone call is hardly going to be on someones priority list to keep remembering is it?


Thanks to everyone who offered advice. To those who always seem to think everyones trying to cheat the system/get away with things, get a life.