Costs to implement CRAR

Commercial rent arrears recovery

 
 

All fees are payable by the debtor (your tenant). As the Commerical Landlord or Managing Agent, you will only incur VAT charges for the whole recovery process, from start to finish.

 
 

Payable by the debtor 

  • Serving the Notice of Enforcement - £75 compliance fee

  • Enforcement Visit - £235 enforcement fee (plus additional 7.5% on balances over £,1,500)

  • Taking Control of Goods if rent remains unpaid (after notice period)

  • Selling of seized goods to settle debt through established Auctioneers

Please note – if the tenant doesn’t pay after enforcement, we reserve the right to invoice the landlord for a minimum of £75 compliance fee + VAT.

 
 
 
 

Payable by the Landlord

The landlord is only responsible to pay VAT charges.

In the light of the confusion over VAT chargeable on Commercial Rent Arrears Recovery (CRAR) fees following the new Tribunals, Courts & Enforcement Act 2007, we want to clarify the position of who pays this tax.

VAT is chargeable on CRAR as it is a business service, therefore the normal 20% VAT applies. Although the cost of enforcement is borne by the tenant/debtor, the VAT is payable by the organisation or individual that has requested the service.

If you have any questions concerning VAT charges on our fees, please speak to our enforcement team on 01785 825 519.

 
 

Recover your rent arrears today

To exercise CRAR as your recovery method, please complete the online form below or download our PDF instruction if you wish to print and scan it back to us at enforcement@dukeslimited.co.uk