Fraudulent Trading

Fraudulent Trading occurs where directors have intentionally run up debts with the creditors and then avoid making repayments towards the debt.

This would arise where you have carried on business with the intention to defraud creditors. For example, if you take deposits for orders that you know the company will not be able to deliver the product due to impending insolvency. Another example, is where you have not paid PAYE, National Insurance contributions and VAT to HMRC, where the evidence shows the company’s failure to pay was deliberate or the result of neglect or fraud.

If fraudulent activity is proved by the Court, then you can be personally liable to make a contribution to the Court, without financial limit. You can also be imprisoned for up to 10 years and/or a fine.

Our advice is don’t give up. At Altion Law we are experienced negotiators who will fight your corner and take the stress out of your situation. Our lawyers have a proven track record of negotiating mutually agreeable deals with HMRC.

Top Tip: You should take legal advice from Altion Law quickly so you know what tactical, practical and legal options are available to you from the outset. Our expert team understands the complexities and challenges when proceedings involve serious allegations such fraud. This can be a frightening prospect for any director. 

Our team can assist you if you have concerns about liability as a director may impact your business or future business opportunities. If you would like to have a confidential discussion with a member of our team, please complete our Contact Us Form, and we will call you back at a time that is suitable for you or you can contact us directly on 01908 414990.

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