Category: Debtor

Five rules bailiffs have to follow when they visit homes following the pandemic

Bailiffs are now able to approach debtors’ homes over repayments for fines, traffic offences, unpaid council tax and other outstanding penalties. The guidance, which has been published by the Ministry of Justice, outlines that goods can still be seized during the pandemic. But the procedure of bailiffs coming to visit people’s homes is now different from…




How to approach rental arrears in a COVID world

In the wake of COVID-19, local councils and housing providers have been jolted into finding new ways of delivering services and interacting with their tenants – especially when it comes to income collection and rent arrears. Increasingly, we’re seeing providers employ innovative strategies while moving from debt recovery to support provision. Behavioural insights tell us…




Your options when a debt becomes overdue

Once an invoice exceeds its credit terms, the likelihood of collecting the debt decreases as it grows older, which is why it’s worrying to see that 30% of businesses now classify more than 10% of their debtor book as over 90 days old. DIY Firstly, if you have a dedicated credit control team in house…




WHAT HAPPENS IF A SERVICE CHARGE DISPUTE IS TAKEN TO COUNTY COURT

Sometimes, despite the best efforts of property managers, service charge arrears continue to be a problem in blocks where property owners find themselves in financial difficulties, or they are simply unwilling to pay. In cases where demand letters are ignored and payment deadlines missed there is often no option other than to take matters to…




What cash flow support is available for businesses impacted by Coronavirus?

HMRC coronavirus helpline If you are concerned about cashflow or tax, HMRC have set up a helpline for businesses worried about not being able to pay their tax due to coronavirus. HMRC will discuss your specific circumstances to explore: agreeing an instalment arrangement suspending debt collection proceedings cancelling penalties and interest where you have administrative…




Service Charge Dispute

How to handle a service charge dispute Service charge disputes can be costly and time-consuming if not handled efficiently. Landlords have a responsibility to maintain the condition of all their residential and commercial properties. They may be able to recoup some of the costs of doing so by issuing tenants with service charges. There are…




‘Buy now, pay later’ credit options pushing consumers into high-cost debt

Buy now, pay later loans have been around for many years, but recent deals have been accused of pushing young consumers into unaffordable debt. Buy now, pay later credit allows consumers to acquire items without paying for them upfront, instead they spread the cost over a set period of time. Sometimes referred to as shop…




How is economic uncertainty in the UK affecting debt?

According to a recent study, bad debt write-offs have gone up from 1.5% to 2.5% year-on-year due, in part, to economic uncertainty. The Western Europe Payment Practices Barometer research report, carried out by trade credit insurer Atradius, examined how today’s economic uncertainty is affecting payment practices in the UK. Key findings from the study included:…




What is the difference between bad debt and doubtful debt?

Knowing the difference between bad debt and doubtful debt can help to prevent financial loss to your business. Today’s uncertain economic climate is having a negative effect on UK business payment practices, with a recent study finding that 35% of invoices remain overdue on their due date. Late or non-payment of an invoice is an…




What tax relief can be claimed on bad debts?

Write-off bad debt and claim bad debt relief to avoid paying tax on income that you have not received. Most businesses will eventually encounter a non-paying customer, especially during today’s difficult economic climate. Bad debts can be very damaging to businesses of all shapes and sizes, so it’s important to minimise your losses by claiming…