Council chasing old business rate.

[insspirito]

Hello,

 

I would appreciate any advice given on the following problem I have.

 

 

A little background information.

 

In June 2011 I opened a Limited Company and rented premisses (light industrial unit) to start a business.

The lease was under my own name as the landlord would not make it on a name of a Limited Company (but it was OK on directors name).

 

When I moved in the councils representative came along and took the details of the Limited company to send the bill to.

 

I explained, and showed him that, I have not started trading and I will only start in 6 month time, at that time he told me that I don't have to pay for first 6 months and then would only pay %50 of the rateable value as a small business.

 

I completed the form and sent it to the council.

All correspondence with council was on the name of Limited Company.

The address of the unit was also the registered address of the company.

 

After 6 months the business still was not trading and it was likely it would never trade due to the nature of business and the current economy. By then we had spent all available money on research and development, which showed that the business was not going to succeed. We moved out and the company is now in liquidation.

 

Today I received a letter from City Council at my HOME address demanding a business rate of £1803 for business premisses (period of 06/10/11 to 30/09/12) with a note "If not paid in 7 days it will be passed to a bailiff".

 

What are my options?

 

Should I just Ignore it as it's a Limited Companies liability?

 

Thank you!

[northernbloke]

I had a similar thing, a demand coming to my home for a defunct business rates debt. I just rang them and said the company was dissolved, he looked at Companies House online, and said basically "Ok that's fine, we'll write it off"

[insspirito]

When I called council they said I should write to them about this but it my not solve the problem.

[Conniff]

Until 31 March 2014 you’ll get 100% relief (doubled from the usual rate of 50%) for properties with a rateable value of £6,000 or less. This means you won’t pay business rates on properties with a rateable value of £6,000 or less.

The rate of relief will gradually decrease from 100% to 0% for properties with a rateable value between £6,001 and £12,000.

 

Click here for more ...

[insspirito]

Conniff,

 

Thank you very much for grate info

 

My Business rate was £7000 ... How can I calculate the rate I was supposed to pay? Can you put me into right direction?

[tomtubby]

It is ALWAYS the case that you should not ignore correspondence.

 

In some ways as the company is in liquidation it is not too important whether the amount being demanded is accurate. What is significant is that the company are in liquidation and accordingly, the debt SHOULD die.

 

However, I am somewhat cautious given the the lease is in your person name and if this is known to the council then they will come after you personally.

 

Make sure that you inform them of the liquidation asap.

 

PS: I would assume that post was not being answered at the business address and they approached Companies House for your address. This is quite common.

[insspirito]

However, I am somewhat cautious given the the lease is in your person name and if this is known to the council then they will come after you personally.

.

 

As I understand the LAW the leaseholder is not responsible for the council tax, the occupier is. And the occupier was a limited company. Am I correct ?

[Thegreenpimpernel]

It appears to be the occupier of a business premisses that is liable for NNDR.

There is certainly no need for a lease for an entity to become liable. The trader becomes liable on the grounds that he / it is conducting business activity from the premisses.

Consequently, you should stick to a consise argument:

 

That Defunct Co LTD was the sole occupier of Unit 'x'.

Mr 'Y' (you) has never occupied nor traded from said premises.

 

This definition of occupier is complicated by the fact that councils use leases as a method of identifying tenants. Its analogous to the way bailiffs miss identify vehicle ownership via registered keeper records.

[insspirito]

Thank you Thegreenpimpernel,

 

I drafted a contract, where I as a leaseholder gave the premisses to the LTD for use. This made the company responsible for business rates and not the leaseholder, myself. Tough council rep tried to find a way around it ... but no letters have been sent since. The issue is, that council knowingly that it's wrong is trying to get money.

 

If anyone is in a similar circumstances, I recommend the above action to be taken. The council has no legal powers to enforce it, if the company in question is no longer trading and you have a contract in place.