Bad debts

UK Discussion in 'Individuals' started by Chris W, Mar 1, 2017.

  1. Chris W

    Chris W

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    Hi,

    I work at a pub where I help with the accounts (I am at AAT level 3). The tenant is a sole trader. He is running the pub into the ground and as a result has debts to both suppliers and HMRC (in the form of VAT). He says he can just leave and the debts belong to the next person who takes over the pub. Considering that I am considering doing this, I need some advice. My understanding is that all debts belong to him as he is a sole trader. Am I right?

    I'm sorry if this is the wrong place to put this. If so, could you redirect me to the best place.

    Thank you for your time.
     
    Chris W, Mar 1, 2017
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  2. Chris W

    Bertie2k

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    Yes as he is a sole trader the debts are his unless he is working as a manager for a brewery I guess. Then the brewery own the debts but even that can get iffy depending on terms and conditions of contracts and leases. But as a first port of call yes he owns the debts if he is a sole trader
     
    Bertie2k, Jun 19, 2018
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