LATEST LAW ON VIDEO - AND IT'S FREE!

It shouldn't be painful. Pour a cup of coffee and take a look at my January video on the latest law. If you don't like it, you can always throw the cup contents at the screen. Clean afterwards with non-chemical liquid.

TAXMEN SOON TO GO ON THE PROWL: AVOIDING ENFORCEMENT

The cuddly HM Revenue & Customers have coughed what they intend to do about businesses and the self-employed who are in debt with their tax. You might have thought that they would have sent one of their kindlier looking tax collectors down your chimney with a bouquet of flowers and a blank cheque for you to sign. Not quite. They announced today that they are restarting their debt collection work as we emerge from the pandemic and economic activity resumes but that at all times - and write this down just in case they overflex their muscles in your direction - they will 'take an understanding and supportive approach to dealing with those who have tax debts or are concerned about their ability to pay tax.'

They will discuss affordable options such as a payment plan (they have more than half a million arrangements in place at any one time) or they may be able to offer a short-term deferral. But - and  this sounds a bit ominous- where customers (clients would be nicer) do not respond to any of their communications or refuse to pay when they can afford to do so, they may try to visit them at their home or business address. 'I'm sorry but he's just gone out to have his toenails filed and won't be back until tomorrow. Who shall I say called?'

From September 2021, where customers are unwilling to discuss a payment plan or ignore contact attempts, Revenue & Customs may start the process of using their enforcement powers: bailiff and bankruptcy included.

In the new edition of Breaking Law I look at how to deal with the taxmen, particularly when they overstep the mark. If you are behind with your tax, you may say that you can hardly afford to 'buy that b....y book.' Fair enough but it can be sued as a door stop when not being read: over 750 pages. 

COVID-19 COMPANY AND BUSINESS TENANCY NEWS - THE GOOD AND THE BAD

The restrictions on service on companies of statutory demands and the presentation of petitions to wind them up were due to run out on 30 June 2021. They have been extended until 30 September 2021 by the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of Relevant Period) (No 2) Regulations 2021 (SI 2021/1718) which were laid before Parliament today 21 June 2021. However, what are not and will not be extended are the measures which protected company directors from complaints of 'wrongful trading' and the small trader exemption from termination clause provisions which will lapse on 30 June 2021. These changes apply throughout Great Britain. 

The government has announced that the ban on eviction measures against business tenants in England which was due to expire on 30 June 2021 will be extended to 25 March 2022 - legislation to give effect is awaited any minute - and that legislation is to be put before Parliament in the current session to ring fence rent arrears owed by business tenants and which have been run up during covid closures. Landlords and tenants will be helped - no the government won't be stumping up the cash! - to reach an agreement about the arrears. If no agreement is reached, the dispute will be settled by an arbitrator whose decision will be binding on both sides. The ring fencing scheme will not apply to rent which accrued due before March 2020 or is clocked up after all restrictions are lifted.

The increase in the amount of rent arrears outstanding from business tenants in England and Wales before notice of enforcement can be given and an enforcement agent can be sent in to seize property under the commercial rent arrears recovery scheme currently stands at 554 days. That's thanks to temporary covid legislation. This legislation is to be extended but the 554 days' worth will stand for the time being.

The covid ban on residential evictions in England has been lifted.

COVID-19: COMPANIES 0FF HOOK FOR LONGER:LATEST

In legislation laid before Parliament today 24 March 2021 - alright, you win: it's called the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021 SI 2021/375 - there is further respite for companies. The restrictions on serving statutory demands on and issuing winding up petitions against them which was due to have ended on 31 March 2021 has been extended by three months until 30 June 2021. Additionally, the temporary assumption that directors are not liable for 'wrongful trading' by carrying on with the company's business while its financial position may worsen which was due to come to an end on 30 April 2021 has been extended to 30 June 2021.

COVID-19: A BREATHER FOR COMPANIES & DIRECTORS: GB

The Corporate Insolvency and Governance Act 2020 is alive. Here's what it does for Great Britain.

• A creditor's ability to ask the court to wind up a company which owes them money is likely to be paralysed up to 30 September 2020 - and that date can be extended. Winding up can now only be sought and will only be ordered by the court if the creditor can show that coronavirus has not had a financial effect on the company or the company's indebtedness to the creditor would have arisen even if coronavirus had not had a financial effect on the company. 
• The potential liability of a company director for wrongful trading (for example, continuing to trade and take customers' money when it was known or should have been known that the company was insolvent) is suspended for what the director did or omitted to do during the period O1 March 2020 to 30 September 2020 and, again, this period is extendable.

Free Company Snooping

A judgment for debt is only as valuable as the ability of the debtor to settle it. That's why I implore you to make enquiries about the financial stability of the debtor before taking the risk of pouring good money down the litigation drain. Searching the Register of Judgments, Orders and Fines run by Registry Trust  for details of High Court and County Court judgments against the debtor which remain unpaid and with credit reference agencies are cheap ways of making those enquiries (see my book Breaking Law which I have not mentioned since breakfast).

And if it's a company which owes you money or you are just a nosey-parker, bless you, a new cheap way of getting some idea of their strength or lack of it - apart from obtaining copies of their accounts at Companies House - is to search the data on commercial and corporate ownership run by the Land Registry. The search would also enable you to identify properties at which you might want an enforcement agent or bailiff to seize goods or to figure in an application for a charging order to secure the debt.  The Land Registry holds details of 3.3 million freehold and leasehold properties in England and Wales owned by UK companies and corporations and  overseas companies. 

The big deal is that searching for this information has just become FREE! To register for the data go to https://data.landregistry.gov.uk