How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Alex J. Your Own Question

Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3497
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

My buisness partners personal affairs are going bankrupt and

Customer Question

My buisness partners personal affairs are going bankrupt and he will have to distance himself from the company which I will take over However I'm being advised I could indirectly pay him via a fund set up in his 5 year old sons name as once I've payed tax on my earnings I can give my money to whom I like . This may not be moral but is it legal .
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi

Thank you for your question and welcome to Just Answer.

Are you suggesting that you will pay yourself more but once you have paid tax you will then gift money to his 5 year old son?

Generally when someone goes bankrupt their trustee will take control of all their affairs and they will be allowed to keep about £500 per month for living expenses.

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.
Yes . The company cannot operate without each others skills,however my buisness partner will have no purpose in working if all the money he earns is taken from him. I must add his bankrupcy is joint with his wife who is employed so there threshold set will probably mean any money he makes will take him over the threshold set , so every thing he earns will be taken.. In an attemp to exploit a loop hole I would pay money to his son after I've been taxed. What he does with the sons money is his affair. Is there any legal implication for me. I've paid my tax and can gift money to who I choose or is this to nieve.
Many thanks Ian






Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Yes you can gift money to his son. However there maybe tax implications on his son receiving such a large gift.

Also if you stop paying his salary all together then that may cause issues with his trustee in bankruptcy.

How is he normally paid? By salary or dividends?

How much are his shares in the company worth?

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.
I will own the shares which I will buy for £1
Effectively he will completely resigned from the company and it would completely become mine as sole director . he will not earn anything and will be helping me out as a friend ( this is the theory)
The money gifted to his son will be his affair to administer and his responsibility if he tells the creditors . Not morally great but I'm trying to protect myself from any comeback legally .
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

You are free to gift your taxed money to whoever you please.

As long as it is not money that he would actually be entitled to, i.e you are paying it instead of salary or dividends. However this wont be the case if he does not have employment with the company any more and does not own any shares.

Did you acquire the shares from his trustee?

Kind regards

AJ

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Last | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice