Ipswich Solicitors

Small business struggling with regulation

Most small businesses tell us that they are struggling simply to survive. Their frustration with bureaucracy and red tape is very tangible, and this is confirmed by a recent survey from Clydesdale & Yorkshire banks.

Headline facts and figures from that research are :-

• 15 % of small business owners find it difficult to keep up with and understand regulations let alone comply with them
• Nearly 10% of small businesses have been late with VAT payments
• Around 10% are also either late or have missed other tax payments
• Around 80% of small businesses are unaware of grants and tax concessions they may be entitled to.

Breach of contract claims and negligence claims – beware time limits

It is one thing having a strong actionable legal claim and another thing to be in compliance with court rules on time limits and such matters. There are obvious and sound reasons why there need to be limitation periods for claims, as otherwise there would be no certainty.

A recent case highlights that once a party has “sufficient knowledge” of a breach of contract or negligence, they need to be vigilant and even perhaps diarise, as lawyers generally due, the expiry of the limitation period to ensure that claims are not statute barred under the Limitation Act.

With breach of contract claims the limitation period is 6 years for breach of contract, and, subject to exceptions, 3 years for a negligence claim. In this case, the claimants were unable to pursue sizeable claims for flood damage to their property due to being out of time, and the court decided that they had sufficient knowledge of the breach of contract and negligence at an earlier date than they argued was the case.

Debt management firms – the clampdown continues

The Office of Fair Trading is certainly showing it’s teeth when it comes to debt management companies, specifically relating to misleading advertisements, enforcement of rules for handling client funds and perhaps most significantly, in relation to cold calling campaigns.

It is thought that a significant proportion of the debt management companies in the Uk may close as a result of the clampdown notwithstanding that this is a big and lucrative market, with millions currently feeling vulnerable and unable to meet their financial commitments.