CRAR
The Common Law Right of Distress was abolished on the 6th April 2014 and a new regime, CRAR, introduced by the Tribunals Courts & Enforcement Act 2007 and regulations made thereunder.
The fundamental changes are that premises must be purely commercial. Rent cannot include insurance or service charges etc. The new requirement is to give a Seven-Day Notice of Enforcement to the tenant before further action. This notice must be given by the Enforcement Agent.
Dawkins will guide you through these changes and ensure your rent is collected as efficiently and professionally as possible.
CLARIFICATION ON VAT CHARGES FOR COMMERCIAL RENT ARREARS RECOVERY (CRAR)
HMRC have clarified the position with regards to VAT charges on Commercial Rent Arrears (CRAR). As the fees are a business service, VAT is charged at 20%. The fees will still be payable by the tenant; however, the VAT must be paid by the landlord as they have requested the service.
We will therefore have to invoice the landlord or managing agent for the 20% VAT charge on the total amount of enforcement fees paid by the debtor. This VAT will be recoverable by VAT registered companies.
Managing Agents should make sure that their landlords are aware of this change. This will also apply for any disbursements, such as storage and auction fees, with the tenant paying for the service and the VAT charged to the landlord.
Please click on the link below for more information on the legislation.
https://www.legislation.gov.uk/uksi/2021/1288/made.
Securing against Unlawful Occupation
A similar procedure to peaceable re-entry, which is undertaken when the occupant has no security of tenure or right to be there and is effectively a trespasser.
Forfeiture by Peaceable Re-entry
Most commercial leases contain forfeiture rights involving peaceable re-entry. Dawkins Civil Enforcement Agents will attend with a locksmith, peaceably re-enter, change the locks and post notices of termination. An inventory and photographs will be provided for your records.
Debt Recovery
For other payments such as service charge/insurance etc where we cannot use CRAR and cannot enforce, we are still prepared to assist in their recovery by traditional debt collection methods.
Removal Supervision
We also undertake removal supervision on behalf of Landlords