Company closed and council after business rates from director

[firbest]

Hi

I closed my company back in 26 July 2016 but my premises lease was paid until 27 Sep 2016 and now the council want Business rates from me as i am a sole director.

Can anyone help advise me what to do?

See the email below from council:

I must advise that the Council has received documentary evidence to show when the new occupier moved in which was on 28th September 2016. As your company xxxx Limited dissolved on 26th July 2016 the company ceased to exist so the Council cannot hold a company that has dissolved as liable which is why yourself, the sole director was made liable from the 27th July 2016.

In order to substantiate your actual vacation date of the property, documentary evidence in the form of a lease surrender and/or removal invoices will need to be supplied.

I can confirm I have also written to the landlord of the property to confirm who was liable for the period 27th July 2016 to 29th September 2016.

In view of the above, there is currently an outstanding balance of £975.96 for the period 27th July 2016 to 29th September 2016, please remit payment or documentation as requested on receipt of this email.

 

[Newchodge]

In what name were the council bills sent out when you were trading?

 

[firbest]

It used to be sent under the company ltd name. Now as the company is closed they have amended the old bill and made that until the company dissolved and created a new bill from the date company dissolved until the contract end date in my name as i am the sole director.

 

[Lisa Thomas]

I don't see how they can legally do that. They cannot pursue you for the Company's debt unless you are somehow personally liable. It sounds like in this case you are not...

 

[UKSBD]

Did you clear the property out, give landlord keys and not enter the premises again between July and September?

 

[UKSBD]

I don't see how they can legally do that. They cannot pursue you for the Company's debt unless you are somehow personally liable. It sounds like in this case you are not...

They're not, it's the debt after the company was dissolved.
If he still had the keys, still kept his stuff in the office, still used the office, he personally could be classed as the occupier between July and September.

 

[firbest]

I was still having the keys but moved out.

 

[Newchodge]

Did you tell the Local Authority that the property was empty and unused?

 

[firbest]

I did not tell them until i received a letter. Now they want me to prove that it was empty and unused not sure if i need to prove that or they need to prove that i was using it.

Also i did not sign any personal guarantee on the lease so not sure why they are coming after me as a director.

 

[obscure]

Have you provided them a copy of the lease showing that it was in the Ltd company's name, not yours?

 

[firbest]

Yes I told them. They did not ask for a copy.

 

[Newchodge]

I think that is a red herring. The ltd company ceased trading in July. Control of the premises was not returned to the landlord until September. Did an individual (you) have use of the premises for that period? Did the lease state that Ltd company was responsible for the council tax until the end of the lease?

 

[firbest]

I did not use the premises as an individual and the premises was closed and empty.

Did the lease state that Ltd company was responsible for the council tax until the end of the lease?
I will need to check and get back to you.

 

[Supercoach]

l doubt that a lease would put responsibility for rates on the landlord especially as you have been paying them.
The council are owed the money by the person/company who paid the rates up until the time the payments stopped.
They will chase you using everything they can (they are dealing with this all the time) until they are satisfied they cannot extract money from you.
They are correct to ask for proof that you also personally vacated (and, therefore, you did not assume responsibility for the rates) so provide everything you can.

 

[obscure]

I did not use the premises as an individual and the premises was closed and empty.

Unfortunately you didn't answer the question that was asked. It wasn't "did you access the premises" but rather "did you have access to the premises" - in other words, did you return the keys as soon as the company closed down or did you keep the keys until the end of the lease and thus retain the ability to use the premises (and thus also stop anyone else using them).

If you kept the keys it would be reasonable for the council to argue that you effectively took over the lease and are therefore liable.