Implementing the TCE Act 2007 The Taking Control Of Goods Regulations 2013 S.I. 2013/1894 Dave Chapman FIRRV

Notice of Enforcement prior to Taking Control Of Goods: Minimum period of notice Notice must be not less than 7 clear days (excludes the day on which the period begins and the day on which a visit was made (so 9 days). The Court may order a shorter period if satisfied that it is likely the goods would be moved or disposed of. Must be given in writing and include: Name and address, date, details of the LO, reference number, enforcement costs incurred and any possible enforcement costs that could be incurred if not paid by the due time and date. How to pay, including hours of opening, address and contact telephone number of the Enforcement Agent’s Office.

Method of giving Notice and who must give it: Notice of Enforcement must be given: By post at the place where the debtor lives or usually lives, or at a place where they carry out a trade or business. By fax or other electronic means of communication By hand delivery By affixing the notice (where there is no letter box) By personal delivery Where a company, can also be at the Registered Office The Notice must be given by the Enforcement Agent or the Enforcement Agent’s Office The E.A. Must keep a record of the time when the notice is given (Schedule 12 para 7 (3))

Time Limit for Taking Control Of Goods: The E.A. May not take control of goods after the expiry of a period of 12 months beginning with the date of the notice of enforcement. Notice must be not less than 7 clear days (excludes the day on which the period begins and the day on which a visit was made (so 9 days). Unless after giving the notice there is a payment arrangement entered into with the debtor, which is then breached. The 12 month period then begins with the date the debtor breached the payment arrangement. Or unless the Court orders an extension of 12 months (on application by the Enforcement Agent or Creditor). This can only be made on one occasion And the Court must be satisfied that the applicant has reasonable grounds for not having taken control of goods during the previous12 month period.

The time limit for taking control of goods will be 12 months. The time limit will start from the date of the enforcement notice or from the date of any breach of a repayment plan. It is not clear if only one notice can be issued What happens if a notice is issued and an alternative remedy is sought. There is no time limit in local taxation law on enforcement under a liability order. How will this affect the re-cycling of cases? When does breach of a repayment plan occur?

Circumstances when the Enforcement Agent may not Take Control Of Goods: Where the debtor is a child (person under the age of 16) A child or vulnerable person is the only person(s) present in the premises where the goods are located. Where the goods are in use by any person at the time the E.A. is seeking to take control, and the action is likely to result in a breach of the peace. “in use” means an item is in the hands of, or being operated by a person. “vulnerable person” is undefined for the purpose of the Regulations.

Circumstances when the Enforcement Agent may not Take Control Of Goods: highways The Enforcement Agent may not take control of any relevant goods if: To do so would pose a risk to public health and the Enforcement Agent ought to be aware of that risk. In this Regulation “relevant goods” means: Animals or livestock (includes cattle, sheep, pigs, horses and poultry) or: Any goods which the Enforcement Agent believes to be or to include :- hazardous goods or materials, (including nuclear matter, radioactive waste and any other such contaminated substances); perishable goods or materials Where this exemption applies, the Enforcement Agent may not take control of a debtor’s vehicle in which such goods are contained.

Taking Control Of Goods: The Enforcement Agent may take control of goods on any day of the week. An E.A. May take control of goods only if they are on premises he has power to enter under Schedule 12 (Relevant Premises) or on a highway (Schedule 12 para 7 (3)) Relevant Premises are anywhere in England and Wales where the E.A. Reasonably believes they are the place or one of the places, where the debtor usually lives or carries on a trade or business. An E.A. May take control of goods of a higher value on premises or on a highway, only to the extent necessary, if there are not enough goods of a lower value within a reasonable distance (para 12 (1)) The E.A. May not take control of goods before 6am or after 9am, unless: The Court, on application of the Enforcement Agent, orders otherwise; or The goods are located on the debtor’s or another person’s premises which are used (either partly or wholly) to carry on a trade or business and the premises are open for the conduct of that trade or business outside of the prohibited hours; or The E.A. Has begun to take control of goods during permitted hours and to complete the process it is reasonably necessary to continue doing so during prohibited hours, providing the time spent is reasonable.

Controlled Goods Agreements A controlled goods agreement may only be entered into by an Enforcement Agent and :- A debtor who is not a child or, A person, aged 18 or over, authorised by the debtor to enter into a controlled goods agreement on the debtor’s behalf, or A person in apparent authority who is on the premises, where those premises are used (either wholly or partly) to carry on a trade or business. The E.A. May not enter into a controlled goods agreement with the debtor or another person who it appears (or ought to appear) to the E.A. does not understand the effect of, and would therefore, not be capable of entering into such an agreement. A controlled goods agreement acknowledges that the E.A. Is taking control of them and agrees not to remove or dispose of them, or permit anyone else to, before the debt is paid.

Contents of Controlled Goods Agreements: The agreement must be in writing and signed by the E.A. and the debtor or, the person authorised by the debtor, or the person in apparent authority (trade or businesses). It must contain: The name and address of the debtor The reference number(s) and the date of agreement The names of the persons entering into the agreement A contact telephone number and address at which, and the days on which and the hours between which, the E.A. Or the E.A.’s Office may be contacted. A list of the goods taken control of, with a description to enable the debtor to identify the goods correctly, including, where applicable: The manufacturer, model and serial number In the case of a vehicle, the manufacturer, model, colour, and registration, and The material, colour, usage, and any other identifying characteristic of the goods. The terms of the arrangement entered into for the repayment of the sum outstanding.

Copies of Controlled Goods Agreements: Where the E.A. Enters into a Controlled Goods Agreement with either a person authorised or someone in apparent authority (as detailed above), the E.A. Must also provide the debtor with a copy of the signed agreement by:- Leaving it in a conspicuous place on the relevant premises, (if known that other people may access the premises – it must be in a sealed envelope addressed to the debtor), or Delivering it to any relevant premises in a sealed envelope (where goods have been taken control of on a highway). If there are co-owners of goods, the E.A. Must provide as soon as reasonably practicable, separate inventories of goods owned by the debtor and each co-owner and an inventory of goods without a co-owner

Ways Of Securing Goods: An E.A. Who is securing goods of the debtor on the premises on which they were found may secure them: (a) In a cupboard, room, garage or outbuilding (b) In the case of goods on premises (or on part of the premises) which are not occupied for residential purposes, by the E.A. Remaining on the premises. (c) By fitting an immobilisation device or, (d) By securing: The whole of the premises, where the premises are occupied solely for the purposes of a trade or business; or Such part of the premises, where the premises are occupied for residential and trade or business purposes, that is occupied solely for the purpose of trade or business. The E.A. May not secure goods (a) to (c) above where any person in occupation of the premises, or any part of the premises, would, as a result, be deprived of adequate access to essential facilities, including exemopt goods, or adequate means of access and exit. Premises may only be secured under (d) if it is not practicable either to: Secure the goods in any of the other ways or, To remove them and secure them elsewhere.

Securing Goods on a Highway Where the E.A. Is proceeding to Take Control Of Goods under Schedule 12, he may secure the goods by the fitting of an immobilisation device Where goods are secured by way of immobilisation device the E.A. Must at the time of immobilising the goods: Provide a written warning to the debtor, signed by the E.A. And fixed in a prominent position on the immobilised goods, which must contain the following: The date the E.A. Immobilised the goods The goods that have been immobilised because the debtor has failed to pay the sum outstanding. A telephone number available 24 hours per day for enquiries, The reference number(s) A vehicle must remain immobilised where it is positioned for a period of not less than 2 hours from the time of immobilisation unless the sum outstanding is paid or an agreement to release on part payment, is made between the E.A. And the debtor. On expiry of the 2 hour period of time, the E.A. May remove the vehicle to storage.

Any Questions?

Goods which may be taken An enforcement agent may take control of goods only if they are— E+W (a)on premises that he has power to enter under this Schedule, or (b)on a highway. 10An enforcement agent may take control of goods only if they are goods of the debtor.E+W 11(1)Subject to paragraphs 9 and 10 and to any other enactment under which goods are protected, an enforcement agent—E+W (a)may take control of goods anywhere in England and Wales; (b)may take control of any goods that are not exempt. (2)Regulations may authorise him to take control of exempt goods in prescribed circumstances, if he provides the debtor with replacements in accordance with the regulations.

Value of Goods Taken Value of goods takenE+W 12(1)Unless sub-paragraph (2) applies, an enforcement agent may not take control of goods whose aggregate value is more than— E+W (a)the amount outstanding, and (b)an amount in respect of future costs, calculated in accordance with regulations. (2)An enforcement agent may take control of goods of higher value on premises or on a highway, only to the extent necessary, if there are not enough goods of a lower value within a reasonable distance— (a)on a highway, or (b)on premises that he has power to enter under this Schedule, either under paragraph 14 or under an existing warrant. (3)For the purposes of this paragraph goods are above a given value only if it is or ought to be clear to the enforcement agent that they are. (4)Sub-paragraph (1) does not affect the power to keep control of goods if they rise in value once they have been taken.

ENTRY WITHOUT WARRANT PARA 14 (1)An EA may enter relevant premises to search for and take control of goods. (2)Where there are different relevant premises this authorises entry to each of them. (3)This paragraph authorises repeated entry to the same premises, subject to regulations. (4)If acting under s72(1) (CRAR), the only relevant premises are the demised premises. (5) If acting under s121A of the Social Security Administration Act 1992, premises are relevant if they are the place, or places, where the debtor carries on a trade or business.

ENTRY WITHOUT WARRANT PARA 14 (6)Otherwise premises are relevant if the enforcement agent reasonably believes that they are the place, or one of the places, where the debtor— (a)usually lives, or (b)carries on a trade or business.

WHAT DOES PRO RATA MEAN LA debt £600 Contact at Compliance EA fee £75 Arrangement to pay £20 per week Pro Rata split weekly –LA £17.78 per week –EA £2.22 per week If arrangement follows enforcement (£230) –Split is £13.26 / £6.74

WHAT IS THE IMPACT The fee is all encompassing Investment for compliance stage Cashflow Will LA’s insist on longer term arrangements –11p in the £ during compliance If the average CT debt is higher –11p reduces by over 1p for every £100 during compliance