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I have a business credit card that has gone from 0% to 25%

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I have a business credit card that has gone from 0% to 25% apr since last month. At the same time my business (which I am co-director of) does not have any money to pay off my credit card and last month the payment bounced. I transferred the Direct Debit to my personal account. I am now looking to transfer the balance to another 0% business credit card but they don't seem to exist. If I borrow money (from a relative) to pay off the credit card as a business debt, will I be able to reclaim that money from the business to pay her back. The business is run by myself and my ex-partner and is in the process of folding in the next few months.
JA: Have you talked to a tax professional about this?
Customer: No, I am blocked from the accountants, and indeed from the business by my ex. It makes getting answers to basic questions extremely difficult.
JA: Anything else you want the Accountant to know before I connect you?
Customer: no

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Customer: replied 1 month ago.
FYI i am reluctant to transfer it to become personal debt as I will then be liable for the whole amount, and it will impact my personal credit rating going forward, trying to find a mortgage to house myself and the children etc.

Thank you for your question.

You are borrowing money from a relative to repay a company credit card debt. You are settling the debt from your personal account for ease of convenience.

You should show all payments being made personally as amounts owing to you on director's loan account in the company's books of account.

You would be able to repay the loan from company funds as and when company cashflow allows and there should be no tax implications.

My aim is to give you a professional service. I hope this is helpful and answers your question.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 1 month ago.
Thanks you. There is an ongoing conversation about whether to make the company insolvent or not - although I am not clear on the details as I was not involved in the day to day running of the business. If the company became insolvent, what recourse would there be to repay the loan to the relative? My ex is claiming what company assets there are are his personal property. I am not in a position to take him to court over this given the financial state of the business.

Thank you for your reply.

If the company is insolvent then you are an ordinary creditor and may struggle to repay the funds in full in light of claim by your ex that company assets are his personal property (you find to ascertain this rationale as a company asset is company property and not that of an individual).

I hope this is helpful and answers your question.

Customer: replied 1 month ago.
with the credit card, given I can't afford the interest repayments as I am now on universal credit, would it make more sense to transfer the debt toa 0%personal credit card and see what comes out in the matrimonial settlement (which is in sept)It is a film business. He claims that the assets - worth around 25K to replace second hand, were paid for on personal credit cards. It is possible this was the case for some of the assets, but in that case I would have been paying for them too as his spouse. He has all the assets in his possession and is using them to run another business. However, if they were paid for personally and then used only for business, surely they belong to the business? Also, if he is using company assets to run his other business, then shouldn't he be paying rental costs to the current business? Thanks

Thank you for your reply.

If you are transferring the debt to personal credit card then you are taking over the debt. If it is company debt then you should reflect this in company accounts.

If another business id using your company's assets then there should be an agreed hire charge levied to this business.

If company balance sheet is showing these assets as company assets then he would have been paid for them in one form or another unless an equivalent amount is sitting in the balance sheet as a creditor.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen to ensure I get credited for it by Just Answer today.

Customer: replied 1 month ago.
I have some more questions please. RE"If another business id using your company's assets then there should be an agreed hire charge levied to this business." - He is claiming the assets belong to him - how can I resolve this? RE"If company balance sheet is showing these assets as company assets then he would have been paid for them in one form or another unless an equivalent amount is sitting in the balance sheet as a creditor." He has not been paid for them ever, this is a new scheme he's come up with to take the camera kit. They are listed in the accounts by his accountants (who are family friends) as being worth £7000 because of depreciation - this is not a true reflection of their depreciated worth. One camera is less than a year old and cost nearly this amount on its own new. Please can you advise? Thanks

Thank you for your reply.

It looks there is disagreement.

I advise you to try to resolve it amicably as legal costs would be higher than the value of asset. It would not pay to become too confrontational.

I hope this is helpful.

Customer: replied 1 month ago.
That is out of my hands. He is unwilling to compromise on anything and i am considered at risk from him by the police. He has already dragged me through two court cases at great emotional and financial cost to myself and the children. I have been forced into this position. If you have nothing else you think you can add then I thank you for your time.

Thank you for your reply.

I am an accountant and not a lawyer and you need a lawyer for litigation matters, I'm afraid.

I hope this is helpful and answers your question.

Customer: replied 1 month ago.
Thanks. Are you saying my questions aren't ones you can answer as an accountant? I would need legal advice to resolve them? The issue I've found is that I ask the lawyer and they tell me to ask an accountant - so sometimes it feels as if I'm falling between two stools.
Customer: replied 1 month ago.
For instance from an accountancy perspective if the assets have previously been listed on the books as belonging to the company - can he suddenly claim they are personal assets and that a mistake has been made?
Customer: replied 1 month ago.
Or if there is no record of him being paid by the company for the use of these assets can he really claim this retrospectively? Is that not an accountancy question? Thanks

Thank you for your reply.

I have answered your questions and recovery of money and/or what should be paid. If he disputes this then it would involve litigation. If the cameras etc have been recorded as assets in company's balance sheet then they belong to the company.

If he says a mistake has been made then he can be held liable for presenting false accounts at Companies House.

If accounts show him as a creditor then he could claim it only if he has reservation of title.

I hope this is helpful.

Customer: replied 1 month ago.
Okay thank you - some useful information there. I can hear you don't want to answer any more follow up questions. Thanks for your time.

Thank you for your reply.

I will answer follow up questions pertaining to original question.

Many thanks

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Customer: replied 1 month ago.
Okay understood