◆ SOLE TRADERS & PARTNERSHIPS
Practical debt advice for sole traders & partnerships
Understand the business position, personal concerns and the options that may fit your legal structure.
◆ UNDERSTANDING YOUR POSITION
Start with how your business is structured
A sole trader, an ordinary partnership and a limited liability partnership need different considerations. Tell us how your business is organised before assuming that company insolvency routes apply.
Bring a clear picture of business debts, cash flow and personal commitments. Identify any guarantees, joint borrowing or formal notices that need attention.
List the names on borrowing agreements, the partnership structure and the household costs that depend on business income. Bring tax correspondence and any joint commitments into the discussion.
◆ PRESSURE POINTS
Where pressure
needs a closer look
Bring these issues into the first financial review. The right starting point depends on the structure and the full position.
Business and personal commitments
Separate the business accounts from household commitments and identify who is named on each agreement.
Tax arrears and upcoming payments
List Self Assessment, PAYE and other tax balances, payment demands and existing arrangements.
Property, assets and guarantees
Raise questions about ownership, secured borrowing and guarantees early so they can be assessed.
Decisions between partners
Bring the partnership agreement and clarify who needs to be involved in discussions and decisions.
◆ PRACTICAL SUPPORT
Options to explore,
not a predetermined answer.
List the names on borrowing agreements, the partnership structure and the household costs that depend on business income. Bring tax correspondence and any joint commitments into the discussion.
View all services →HMRC Time to Pay
Discuss tax repayments against both trading receipts and the commitments you must meet each month.
HMRC Tax Arrears
Separate tax balances by person or business and identify the demands already received.
Company Rescue & Restructuring
Relevant only if a company is part of your arrangements; explain its role and debts separately.
Winding-Up Petition Advice
If a company within the structure has received a petition, bring the papers and hearing date.
◆ YOUR FIRST CONVERSATION
A starting point for sole trader or partnership
Bring business debts, household outgoings and jointly signed agreements.
Explain who trades, who owns assets and who is named on contracts.
Identify the questions that need personal, partnership or company-specific advice.
◆ FURTHER READING
Useful starting points
Tax arrears: a starting point for sole trader or partnership ↗Repayment planning for sole trader or partnership ↗Further guidance for sole trader or partnership ↗List the names on borrowing agreements, the partnership structure and the household costs that depend on business income. Bring tax correspondence and any joint commitments into the discussion.
◆ CONFIDENTIAL BUSINESS ADVICE
Talk about the business and personal picture.
Tell us how you trade, who is involved and which commitments are causing concern. We can help identify the information needed for an appropriate assessment.
✓ Confidential first conversation
✓ Free and without obligation
✓ By telephone or video
◆ FREQUENTLY ASKED QUESTIONS
Questions, answered plainly.
How should partners prepare for a joint discussion?
Agree who will attend and bring the partnership agreement, current balances and a list of commitments made by each partner. Flag any disagreement about the figures at the outset.
What if my records mix personal and business spending?
Bring the records you have and mark transactions you cannot yet allocate. Explain which account receives trading income and which pays household bills so missing information can be identified.
Should I wait until every tax figure is confirmed?
You can enquire with provisional figures. State which balances are estimates and include the dates on any HMRC letters so the discussion is based on a clear picture of what is known.