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Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 6426
Experience:  Solicitor
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I entered a partnership in a small business several years

Customer Question

I entered a partnership in a small business several years ago as a sleeping partner along with 2 others. I and 1 other resigned from the partnership effectively dissolving it in June and July this year - HMRC were informed off the change. The third partner continued to run the business as a sole trader and has now closed the business with staff seeking redundancy pay that the business cannot afford to pay. My question is that does the liability for the debt (redundancy payments) sit solely with the third partner (sole trader) or is there any come back on the two partners who have left.
Submitted: 1 year ago.
Category: Law
Expert:  Jamie-Law replied 1 year ago.

Hello my name is ***** ***** I will help you with this.

Just to be clear, was the partnership dissolved? Did you serve notice?

Customer: replied 1 year ago.
We did not serve notice. We agreed this verbally and informed hmrc.
Expert:  Jamie-Law replied 1 year ago.

OK. Technically the partnership DOES need to be dissolved formally in order to release you.

So you COULD be liable.

However you have an argument to show that in effect it was dissolved., you informed HMRC and your other partner solely took over. So there is an argument there.

But as you did not formally dissolve it, you could in theory be liable. But you certainly have a case to say you are not.

You are no longer in control etc.

Can I clarify anything for you about this today please?

Customer: replied 1 year ago.
if the remaining partner goes insolvent this could come back on us but we could use the above argument. Can I get a copy of this chat?
Expert:  Jamie-Law replied 1 year ago.

Potentially yes.

You just log back into your account and click my questions.

Can I clarify anything else for you?