Business rates demand notice - court

[peter.k]

Hi everyone,


Story so far - myself and ex business partner owned a business back in 2011-2013 (ltd). Business was closed in 2013 and this July i received a letter stating that i owe business rates. I contacted council and explained that it was not me personally liable for rates but company and provided all profs (bills, company registrations, Invoices, etc). Council lost my first letter. After a months or so i posted a second letter with all proofs and explanations. Based on tracking it was delivered to them and signed by reception. Council kept it quiet for 6 weeks after which i received a Court Summons this week. I have tried to call them and email for last few days - no reply or response.


What is the procedure if i have to go to court as i haven't been in one and dont know what to do.


Thank you in advance.

[wales01man]

Re: Business rates demand notice - court

Was this a LTD company

[peter.k]

Re: Business rates demand notice - court

Hi wales01man - yes it was an LTD company.

[wales01man]

Re: Business rates demand notice - court

Should be no problem defending this as long as any payments were made from LTD company funds

[Amethyst]

Re: Business rates demand notice - court

How was the business closed in 2013 ? and was the council informed at that point ?

[ploddertom]

Re: Business rates demand notice - court

Whose name is the Summons in? What date do they allege the debt is owing from & were payments made prior to this?

[peter.k]

Re: Business rates demand notice - court

Amethyst - business was closed by informing Companies house (usual route of advertising companies closure, etc)

ploddertom - in summons it is my name as well as ex-business partners name (who emigrated to Germany 4 years ago and dont care). Debt alleged from 2012.

[Amethyst]

Re: Business rates demand notice - court

Voluntary Strike Off (s1003 companies act 2006) or Liquidation ?

[ploddertom]

Re: Business rates demand notice - court

I assume you never gave a Personal Guarantee?

[peter.k]

Re: Business rates demand notice - court

Amethyst - voluntary strike off.

ploddertom - sorry, what personal guarantee? On what?

[ploddertom]

Re: Business rates demand notice - court

Sometimes even as director you may be asked to sign a Personal Guarantee meaning you will pay what is owing if the Company is defunct.

[peter.k]

Re: Business rates demand notice - court

ploddertom - only personal guarantee i signed for the garage rental contract stating that business partners will pay for the rent. No other guarantees signed.

[ploddertom]

Re: Business rates demand notice - court

I would hazard a gues as this is an old debt that the Council are trawling trying to get every last penny back. It could be they think you will not have any records that prove this was a Company debt & died when the Company did. They may realise they cannot trace your partner and see you as the person they are going to chase. Eventually they may come to their senses and then tell you not to attend Court. Given their track record to date I certainly would not believe anything they say.

If it were me I would go, sidestep the Council on the day & insist on going in front of the Magistrate and having taken all proof with you ask this be thrown out.

[peter.k]

Re: Business rates demand notice - court

ploddertom - thank you for your help and comments. I have never been in court and not sure what to say or whom to. Of course i will go and participate, more worried of what i need with me and what to say to whom.

[ploddertom]

Re: Business rates demand notice - court

With LO Hearings the basics are that the Council "hires" the Court and if anyone turns up then some Council employees may try to dissuade you from going in front of the Bench by "sorting" it all out beforehand. For the majority this may be OK but you have sufficient to show you are not liable and it is your right as ex-Director to put the case for your dissolved Company. Although it has serious outcome these affairs are reasonably casual.

If you get in front of the Bench then you address them as Sir or Ma'am according to gender. Speak clearly when spoken to and remember your please & thank you. You don't need to dress in a 3 piece but scruffy is also out.