I have a client whose company ceased due to insolvency last year.The HMRC are now chasing him for PAYE and VAT debts personally but in his old name. He has changed his name by deed poll and owes other debts as well including the law societies debt collector for repayment of legal aid. All his assets are now in his new name with the main asset being in his wife's name.Should he just file for insolvency to avoid the debts or would he be alright leaving things as they are since he has changed his name by deed poll?
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I know nothing about the legalities of name changes
(which implies that it's very much a legal - and not a tax or accounting - issue). But common sense would tell me that simply changing one's name in order to get rid of debt would be far too easy a trick. It certainly doesn't work with companies!
I agree with BKD
I wonder why they are pursuing him for the company debts though! It's pretty unusual.
I have a client who chaned
I have a client who changed their name by deed poll. We sent a copy of the formal document to HMRC who changed his name on their records without a problem. Any liablities belong to the individual no matter what their name is. He should consult an IP regarding his situation
In the interests of fairness
Ken Dodd?
I would remind you that Ken Dodd was found "Not Guilty" by a jury of his peers before a judge in good standing in England & Wales.
I have to agree with the general feeling of the board though that this all sounds dodgy.
A change of name might provide a distraction for the odd "Knock-on-the-door" type debt collector, but the likes of Experian et al aren't that stupid and will track him down sooner or later (+ costs and interest). Much better to make a deal with creditors and lose assets than be forever looking over your shoulder for debt collectors.
I would certainly avoid dealing with this type of person as a client, after all if he is prepared to go to such lengths to evade his creditors, he's almost certain to lie to his accountant as well.