Can bailiff visit Ltd Co premises for pers CTAX arrears?

[Peterbard]

Whitsend.

 

We have all spent a lot of time advising you on the forum and despite your thread running to over 8 pages, we are still questioning the proper status of your business. This is an area that I would also suggest that you spend a few days looking into.

 

Yes glad that it was not only me that was confused about this.

 

Also has there been any attempt of enforcment at your home ?

[Coughdrop]

Well if it stops you all moaning it was a suggestion to split the thread into a discussion thread.....

 

Which was decided it was not required...so now I will remove further off topic posts.

 

Have I missed something?

 

No moaning from me.

[AndyOrch]

Have I missed something?

 

No moaning from me.

 

[daverules]

Have I missed something?

 

No moaning from me.

 

So if the if it stops "YOU ALL MOANING" then surely it was correct to bring the subject up.

 

Anyway as I am sure this post will be removed, regards to all

[Bailiff Advice]

This thread has loads of good advice for the OP and it is now for her to address the Notice of Enforcement and sort out an Income & Expenditure and the slight discrepancy regarding 'self-employment' etc.

 

I will refrain from posting until the OP returns.

[AndyOrch]

I thought we had agreed to stop the tit for tat Dodge...the above is senseless to the OP only to the person you intend to keep this argument up with. ..

 

Unapproved.as its pointless.

 

Andy

[stu007]

Off Topic post unapproved

[whitsend]

Whitsend.

 

We have all spent a lot of time advising you on the forum and despite your thread running to over 8 pages, we are still questioning the proper status of your business. This is an area that I would also suggest that you spend a few days looking into.

 

On the one hand, you state that the goods in the building belong to a Limited Company. If that is so, then the items should be exempt from seizure. Your accountant should have a list of assets and the total value would appear on your yearly accounts (assuming accounts are filed).

 

You have said that you trade as a sole trader (despite being a Director of the Limited Company). If you trade from the premises as a sole trader.....then yes, the new enforcement company can visit you at that address. You will need to provide evidence that the items that you use are owned by the Limited Company.

 

As mentioned earlier, you have now been given another opportunity to deal with your council tax arrears and it is for you to ensure that this time, you respond to the Notice of Enforcement from the third enforcement company.

 

I have never said I am a sole trader, I stated my company was a limited company. It was someone else who suggested Ii was a sole trader. Please let me know where you think I said that. I stated my company was limited with 2 directors.

 

If you read my posts you will see from the beginning that my problem was that I did not receive any notices at home. They council didn't even get my correct business address, so I nearly didn't get this one.

[whitsend]

I do not understand the descrepancy. Yes I am the Director of a Limited Company. But I am also self employed.

[ploddertom]

I do not understand the descrepancy. Yes I am the Director of a Limited Company. But I am also self employed.

 

Does your Ltd Co pay you a salary/wage or do you only accept a dividend once a year? If you are paid a salary/wage then you are classed as an employee of your Ltd Co and therefore could be subject to an Attachment of Earnings. As for any goods then providing you have receipts etc then these belong to your Ltd Co and should not be available for seizure as they could be classed as third party goods - they may only seize goods belonging to the debtor. Hope you can now see why establishment of your status is important.

[Bailiff Advice]

I have never said I am a sole trader, I stated my company was a limited company. It was someone else who suggested Ii was a sole trader. Please let me know where you think I said that. I stated my company was limited with 2 directors.

 

If you read my posts you will see from the beginning that my problem was that I did not receive any notices at home. They council didn't even get my correct business address, so I nearly didn't get this one.

 

Whitsend,

 

It is usually the case that a person who elects to be 'self employed' is considered to be a sole trader. Plodddertom has made a good post above and you may wish to glance over the following short blog on the subject.

 

http://ihorizon.co.uk/self-employed-limited-company/

 

As difficult as it may be, it would be best if you put the past few weeks behind.

 

As predicted, the local authority have passed your account to a third enforcement company. The difference this time, is that this new company will have access to updated notes from the local authority about your business etc. It is for this reason, that I suggested that you spend some time getting documentation together to prove ownership. You need to also get an Income & Expenditure drafted.

 

You are now about to be given another opportunity to set up a payment arrangement by responding to the Notice of Enforcement. As soon as you receive that letter please post back on the forum. As long as you deal with the letter within the 'compliance stage', bailiff fees will be capped at just £75.

[Peterbard]

Yes as an employee of a limited company you are not "working for yourself" or "self employed" as confusing as it may sound.

 

Did they give the name of the new bailiff company ?

[Coughdrop]

Where has it been stated that the account has been passsed to a third enforcement company? I thought Whitsend had received a letter from a second enforcement company stating the account would be returned within seven days (not to be taken literally) if full payment or contact was not made.

 

This is significant, as without going through the entire issue again, once the account is returned, there is a window of opportunity to make a payment with no fees added, and to put a solid repayment proposal to the council, with your I&E attached, and a letter as per my previous post. There is a fair chance this would be accepted.

 

Is this an avenue you want to pursue?

 

If not, then we are all going to be advising exactly the same thing, so it would be helpful to know.

 

If you (or someone else) could clarify where it has been stated this has been passsed to a third enforcement company, this would be helpful. However, even if it has, there is no obligation to deal with the bailiffs, and it is possible to sit it out again and wait for it to be returned, once again, to the council, at which stage any fees will die as per post 2!!! (I underline it purely to mention the word 'possible' - I'm neither recommending nor not recommending this route, purely outlining your options).

 

160 posts ago, I outlined the exact same option.

 

Whether it is worth it for the sake of £75 is something only you can decide - if it were me, I probably wouldn't bother, but it isn't me.

 

[Peterbard]

If anyone is unsure about the OPs situation regarding the debt surely the best thing to do is ask the OP,.

Edited July 13, 2016 by Andyorch
edited

[whitsend]

Yes as an employee of a limited company you are not "working for yourself" or "self employed" as confusing as it may sound.

 

Did they give the name of the new bailiff company ?

 

Yes I am, as the Director pay goes through PAYE, but other invoiced duties do not. As the other invoiced items are maintainance and the administration of building renovation, they do not come under the duties as part of my role as a director, and have to be invoiced and declared on a tax return.

 

Please note I was visited May 2014 by HMRC, who checked this and agreed that this was correctly done. These duties would normally be carried out by a private contractor. I also occasionally have to invoice part of the electrical work done to the owner of the building, this work is carried out by me, not my limited company and again has to be declared on a tax return. This is all done by an accountant.

[Bailiff Advice]

Yes I am, as the Director pay goes through PAYE, but other invoiced duties do not. As the other invoiced items are maintainance and the administration of building renovation, they do not come under the duties as part of my role as a director, and have to be invoiced and declared on a tax return.

 

Thank you for posting back.

 

It would seem to me (and please do ask your accountant) that the local authority could apply for an Attachment of Earnings order against your Limited Company in respect of your salary through the company.

 

This would not affect any self employed income and would only apply to your salary through the Limited Company.

 

If an attachment were applied for, the Limited Company MUST obey the terms of the order.

[Coughdrop]

So with regard to post 165, you do receive a regular monthly salary from which an Attachment of Earnings could be made?

[Coughdrop]

Sorry BA, a crossed post. I agree with you - I was just double checking with Whitsend.

[Coughdrop]

Whitsend,

 

As you appear to be around, please could you answer:

 

Has your account already been passed to a third company for enforcement, or have you just received the letter saying it was going to be returned from the second enforcement company?

 

Depending on your answer to the above, there may be further questions, but it would be good to clarify that first please.

[Peterbard]

Yes I am, as the Director pay goes through PAYE, but other invoiced duties do not. As the other invoiced items are maintainance and the administration of building renovation, they do not come under the duties as part of my role as a director, and have to be invoiced and declared on a tax return.

 

Please note I was visited May 2014 by HMRC, who checked this and agreed that this was correctly done. These duties would normally be carried out by a private contractor. I also occasionally have to invoice part of the electrical work done to the owner of the building, this work is carried out by me, not my limited company and again has to be declared on a tax return. This is all done by an accountant.

 

Thanks for this, Ba has this covered in her response.

 

Unfortunately, in order for an attachment of earnings to be applied the bailiff activity would have to cease, as only one enforcment method can be used at the same time.

 

There are a number of ways this can be done, if you think this i an alternative worth pursuing.

[Coughdrop]

You may or may not have various options, but a lot now depends on the issue of whether or not the following statement is, actually, the case:

 

"As predicted, the local authority have passed your account to a third enforcement company."

 

This is a critical issue to have an answer to now, as pretty much everything else now depends on whether or not this is the case. We need clarification.

 

It would be really helpful if you could answer this one question:

 

Has your account already been passed to a third company for enforcement, or have you just received the letter saying it was going to be returned from the second enforcement company?

[whitsend]

Whitsend,

 

As you appear to be around, please could you answer:

 

Has your account already been passed to a third company for enforcement, or have you just received the letter saying it was going to be returned from the second enforcement company?

 

Depending on your answer to the above, there may be further questions, but it would be good to clarify that first please.

 

A letter was sent last week, saying the account was being sent back to the council within 7 days, I rang the council iniially to complain about them sending letters to the wrong company, they told me they had gone for another liability order for this years council tax as well and that it would go out to another enforcement company. They refused let me make a repayment plan with them.

[whitsend]

Please note this debt will only just be in the process of being sent back to the council, so

 

No, it has not yet gone to a third enforcement firm

[whitsend]

So with regard to post 165, you do receive a regular monthly salary from which an Attachment of Earnings could be made?

 

No, I do not, I often am not able to pay my salary. Last year my directors earnings were less than 2500.

[whitsend]

The council are aware of my earnings as I applied for help with my council tax late last year, which they said I was entitled to, but my self employed earnings made it very difficult and it went on and on, with me keep sending information over and over again. Eventually I gave up.