Can I stop the bailiff visiting my business?

The term bailiff is really the name of someone who has the power to "distrain" on your goods and possessions in order to satisfy a debt.  They can be used by any creditor whose debt has been proven by the court. Landlords and HMRC also have distraint powers.  In the event that HMRC want to collect taxes an officer of HMRC will arrive at your premises without warning.  However they are only likely to come after a number of warning letters have been sent.  In some cases they will employ a debt collection company to collect the unpaid tax.   So how does the bailiff take the goods? - They can do this by taking what is termed "walking possession"

Walking possession

This is where an HMRC Officer or a bailiff (for the County Court) or Sheriff (for the High Court) has visited your premises and obtained entry under a distraint notice. He /she has asked for payment of the proven debt. If you have not paid this plus the court and his costs he can "take possession" of the goods, equipment, fixtures, stock etc on the premises. Legally they cannot force their way in but can enter via an open window for instance. So the practicalities are such that it will be difficult to keep them out.

Effectively if you do not reach a deal or pay in full the field officer or their agents can remove and sell the assets in 5 days. To sell the assets, after they are covered in this way is a criminal offence. If the bailiff has obtained a walking possession he can force entry to recover the goods after the 5 day period. However, it should be noted that the agent cannot distrain on "tools of the trade" as otherwise the business is damaged irrecoverably.

What can I do?

• In the first instance you should check who the bailiff is.  If he is an HMRC officer he will hold a HMRC identity card.
• Is the bill in dispute? If so, then you should contact the HMRC office demanding payment.  However, it should be noted that if you do dispute the bill then you should do it in response to the warning letters that have been sent.   Sometimes the amount HMRC is seeking to collect may be under appeal. In this instance the bailiff can be asked to leave.
• You could pay the money.  It may be the only way to save the business.  If your business if viable but just needs a bit of time then please call us on 0800 9700539 and we can look into trying to get the business restructured for a rescue.  This could be using a CVA or administration

A word of caution.  If the company's registered office is your home then that is where the bailiff will turn up!

We are seeing more and more instances of HMRC resorting to distraint to collect unpaid taxes.