Evicted tenant with no savings but £5k pm consultancy work?

by Readers Question

9:11 AM, 7th February 2020
About 2 weeks ago

Evicted tenant with no savings but £5k pm consultancy work?

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Evicted tenant with no savings but £5k pm consultancy work?

I have evicted a tenant 9 months ago after getting a CCJ for possession and money. The Court order states about £20,000 owed.

She has no car, savings or wealth but is earning over £5K a month from freelance consultancy work.

If I take her to court from “Enforcement” is the Judge likely to grant a monthly payment from her as this is not a PAYE job?

It would be nice to hear a solicitors or legal persons view.

Many Thanks

John



Comments

Kathy Evans

17:13 PM, 11th February 2020
About A week ago

Reply to the comment left by John at 11/02/2020 - 16:55
Then she is either a Ltd Co director working as a consultant for a charity (and therefore PAYE, although probably taking most of it as dividends) or a self-employed consultant - but I bet she has a car and a TV. If it's a Ltd Co scenario you can get your own back, but not your money, by reporting her to HMRC, saying she is a disguised employee under IR35.

John

17:29 PM, 11th February 2020
About A week ago

Kathy,
I am 99% sure that she is just a freelancer consultant getting paid cash & expenses. She is Irish working for a friendly Irish charity in London
Regards
John

Kathy Evans

18:12 PM, 11th February 2020
About A week ago

Reply to the comment left by John at 11/02/2020 - 17:29
There's no such legal entity as "a freelance consultant". You are either an employee/director of a Ltd Co (aka personal service company) and must be paid on Schedule E (plus dividends). These are the ones you can report under IR35 if they have only the one client. You can report the charity to HMRC and the Home Office if you think they haven't done their right to work checks (like our right to rent checks) and is are paying in cash. If earning that much and not an employee, must be VAT registered also, so there's another way to make life a misery. Or Self-employed/sole trader, paid/paying tax under schedule D. Or you are a tax dodger and should be reported and imprisoned (no charity would risk it). If self-employed and HMRC thinks they are really employees of their client, the client has to pay the extra tax and NI and the consultant just has to declare income on self assessment return. Will probably still have a car and TV and possibly jewellery and a watch that the bailiffs can take

John

23:40 PM, 11th February 2020
About A week ago

Thanks Kathy,
You are focusing on the legalities of her work and how I can make her life a misery. I however am not trying to make her life a misery and am just looking for the best way to recoup all or some of the debt Also I dont want to try and put her employer out of business as this would make the situation worse as she would then be out of work.
I would like to know what the Bailiffs or Judge would treat the £5K a month she is earning on a freelance basis. Are they likely to force her to make monthly payments even though it is not a PAYE job?
Regards, John

Kathy Evans

17:04 PM, 12th February 2020
About A week ago

Reply to the comment left by John at 11/02/2020 - 23:40
True, but if she is Ltd Co contractor she will be PAYE (from her own Company) so technically you could get wages stopped, but if she is foreign national (ie Irish) that might be more difficult unless Ltd Co is registered in England and Wales. I'd still try the bailiffs

John

21:19 PM, 12th February 2020
About A week ago

Reply to the comment left by Kathy Evans at 12/02/2020 - 17:04
Thanks but she is Irish and not a Ltd Co, just an individual doing casual freelance work. Regards,
John

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