Defendant fails to pay Judgment in time

[Batista230]

Hi there
I had an issue with an employer that I took to county court and the judge ruled that

IT IS ORDERED THAT
1. Judgment for the Claimant in the sum of £391.73.
2. The Defendant shall pay the Claimant's costs in the sum of £150.
3. The total sum of £541.73 shall be paid by 4pm on the 17th March 2017.

I had payment go into my account on Friday (17th march) of £477.32 in a different name of the defendants names as it appears on the court papers or any other name I know them as.

One could conclude that the short fall was for tax and NI deductions made by them self's but with out seeing a payslip I can not verify this.
I have emailed the company twice now but they have failed to respond

What coerce of action do you think I should take if I was looking at appointing reinforcements such as a bailiff/ sheriff?

Thanks
Batista230

[ostell]

Re: Defendant fails to pay Judgment in time

Judgements do not have Tax & NI deducted so there is no need for a payslip. You should receive the full amount of the judgement and costs.

What I have seen work is to write to the defendant saying that if payment of the full sum is not made within 14 days then you will appoint court enforcement officer to recover the sum owing. This will incur additional costs of £xxx.xx, raising the amount to £xxx.xx. ( Find out how much it costs to get the bailiffs involved)

If that payment is unidentified then there is no reason to believe that it is from them and you continue for the full sum, unless they identify that payment.

[Batista230]

Re: Defendant fails to pay Judgment in time

Thanks for you replry

Judgements do not have Tax & NI deducted so there is no need for a payslip. You should receive the full amount of the judgement and costs..

can you please provide any referance in law to this?

What I have seen work is to write to the defendant saying that if payment of the full sum is not made within 14 days then you will appoint court enforcement officer to recover the sum owing. This will incur additional costs of £xxx.xx, raising the amount to £xxx.xx. ( Find out how much it costs to get the bailiffs involved)

do you know where I can get a template letter from and how do you go about getting a bailifft?

that payment is unidentified then there is no reason to believe that it is from them and you continue for the full sum, unless they identify that payment.

So in my letter I need to ask them if they have paid anything at all and to prove it

[R0b]

Re: Defendant fails to pay Judgment in time

can you please provide any referance in law to this?

Without trying to answer this question in a technical and complex matter, the simple answer to your question is that it is made up partly of tax laws and case law and as Ostell has pointed out, the damages are not taxable.

Simply put, where there is a PILON clause in the contract and your employer exercises that right, the termination payment becomes taxable. However, where the employer does not terminate in accordance with the correct notice (effectively wrongful dismissal), and the employer then pays you what you owe (before you issue a claim), they are called 'PILONs paid as damages for loss of notice'. The payment is treated as a damages compensation and is therefore not taxable provided that the payment is less than £30,000 (NI is exempt completely) - See http://www.legislation.gov.uk/ukpga/2003/1/section/401 and https://www.gov.uk/hmrc-internal-man...anual/eim12978 and EMI Group Electronics Ltd v Colicott 1999.

What I'm not 100% sure on is whether or not the same legislation above applies in the context of a claim issued for damages for breach of contract in a civil court rather than an employment tribunal (I believe it does apply for claims brought before the ET but don't quote me on it). Generally however, damages awarded by the Civil Courts would not be taxable and I'd be inclined to think that way unless a Court ordered otherwise. If the employer had an issue with the sum of money being claimed they should have pleaded in their defence that the sums you are claiming should be offset with the applicable tax but if they didn't then that would be their fault. I believe that the employer is usually responsible for any unpaid Tax and NI rather than the employee and HMRC will tend to recover the underpaid taxes from the employer.

Even if you applied the above, because the employer wrongfully dismissed you, the money is treated as compensation for the breach and because it is under £30k, you wouldn't be liable to pay any tax on it.

Disclaimer: Not a tax expert but have a small amount of knowledge based on experience, happy to be corrected.

[ostell]

Re: Defendant fails to pay Judgment in time

Ask your local court the cost of instituting the bailiffs to collect

Proceed on the basis that you haven't received anything from them. Nothing received that you recognise, don't mention that amount received. Let them tell you if they sent it.

Rob has confirmed what I thought, ie a judgement is payable in full. It doesn't matter what the judgement was about it was a judgement.

When you get the cost of employing the bailiffs then a simple letter to them demanding the full amount of £541.73 within 14 days or you will reluctantly have to involve bailiffs with an additional cost of £xxx. Point out that a continuing failure to pay will result in a CCJ against them.

If you do get a response saying that they have deducted tax and NI write back to them pointing out the error of their ways. They will then come back saying they have already paid this to HMRC. Your response to this is that this is their problem and you want the full amount from them.

Inform the court anyway that the payment has not been made. They will be trying to say it has so as to avoid a CCJ. Just keep the court informed.