Litigation and Insurance

2. Law Enforcement

Government organisations with responsibility for enforcing legislation have a duty to bring cases against businesses which break the law.

Below are some of the main problem areas:

2.1 HM Revenue & Customs is particularly active.

• The average settlement of a business tax investigation is about £5,000 (including tax, interest and penalties). Accountancy and legal fees can add significantly to these costs.

2.2 The Department for Work and Pensions pursues businesses for non-payment or incorrect payment of National Insurance contributions.

2.3 The Health & Safety Executive makes over 1,000 successful prosecutions a year.

• About 11,000 businesses are served improvement notices or prevented from operating by prohibition notices. See Health and safety.

2.4 Trading Standards prosecutes several thousand businesses each year.

• The most common prosecution is for false trade descriptions. For example, when a business misleads a customer about the quantity, quality, or price of a product.

2.5 Companies House prosecutes over 1,000 directors each year for failing to submit accounts and returns on time.

2.6 Various environmental authorities prosecute businesses which cause pollution, including noise pollution.

See Your business and the environment.