If you run your own business, the responsibility for debts will depend on whether the business is a sole trader, partnership, limited liability partnership or limited company.

If you fall behind with other business debts there are consequences which may affect your business’s ability to trade. You may:

• Lose vehicles or equipment you rent or have on hire purchase;
• Lose your premises or vital services such as water or electricity;
• Be refused credit with your current suppliers.

If you are already in arrears with your business debts, contact Business Debtline.

HM Revenue and Customs have extensive powers to collect income tax, VAT and National Insurance arrears. They are able to:

• Take stock or equipment from your business premises (or your home for sole traders or partnerships) without a court order
• Take action through the county court after getting a liability order
• Issue bankruptcy proceedings to collect the debt

Your local authority has powers to collect arrears on business rates. Once they have gained a liability order from the court they can do any of the following to collect the amount due.

• Take stock or equipment from your business premises (or your home for sole traders or partnerships)
• Take action through the county court
• Issue bankruptcy proceedings to collect the debt