Sole trader Client jailed for some misconduct. His dad took over to run the business. Do I need to transfer the business to his dad's name as a new sole trader or carry on till he is out. He will not be out for couple of years.
Thanks
Replies (4)
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It depends
If 'Dad' is running the business effectively as an employee of his son, and the profits belong to the son (with presumably Dad receiving something under PAYE) then the business continues to belong to the son.
On the other hand if 'Dad' is effectively running the business for himself and the profits belong to him, then son has ceased in business and 'Dad' has commenced in business.
So you need to get instructions from father and son as to what is actually the current position.
You need to know a bit more about why son is 'inside'. Are further Crown Court proceedings ongoing (particularly in relation to possible confiscation or compensation)? If so the son may be required to cough up the value of the business and that has implications for your advice to father and son.
David
Confiscation
It can (and often does) happen that the Crown Court will make a confiscation order a long time after the convicted defendant has started (and even finished) his sentence.
But the convicted defendant will know whether confiscation proceedings are in the pipeline.
Cases vary between those dealt with very swiftly and those which take years to resolve.
If you know that the imprisonment is in relation to something which has no financial benefit (such as most crimes of violence, for example) then all is well.
If, on the other hand, the crime had some financial side (such as drug trafficking or claiming state benefits fraudulently) there may be an issue.
You could always go visit the client - you might find it entertaining! (Do book a visit in advance to make sure he is going to be in.)
David