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Michael Holly
Michael Holly, Solicitor
Category: Law
Satisfied Customers: 7049
Experience:  I have 20 years of experience as a solicitor in litigation and other areas
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When a company receives a distraint notice, are they allowed

Customer Question

When a company receives a distraint notice, are they allowed to still trade ?
Submitted: 5 years ago.
Category: Law
Expert:  Michael Holly replied 5 years ago.

There is nothing to stop you from continuing to trade. On the first visit they generally just take an inventory of the things that they can take and then give a further 5 days or so for the debt to be paid. They cannot force entry so they can only come in if you invite them or they can find an open door or window.

I hope this clarifies the position. If there are any further points please reply

Best wishes

Yours sincerely

Customer: replied 5 years ago.

thank you , i have a distraint order for next week assume , and as you said they will take my inventory . but plan to still trade , usually the next tactic of HMRC after the restraint ? As my company does have cash flow but not the amount they asked for with 7 day period company that has been paying them regulary and play to keep paying them

Expert:  Michael Holly replied 5 years ago.

Apparently only 1% of distraint procedures actually end up with HMRC taking anything. The whole thing is really designed as a way of getting you to pay the tax.If you have cash flow but not the full amount within the likely time span that all this will take place I would offer a small number of instalment payments so you clear it up in a relatively quick period of time but hopefully on terms you can manage.

Yours sincerely


Expert:  Michael Holly replied 5 years ago.
Hi [Customer Name],

I'm just following up with you to see how everything is going. Did my answer help?

Let me know,
[Expert Name]