British trader uses post-Brexit loophole to relocate to France and bypasses UK creditors

A trader has shut down his debt-ridden London company and opened a French one to use a post-Brexit EU loophole which avoids paying British creditors.

Peter Magurran, 35, relocated to a village near Bordeaux following a court appearance and judgments against him in England.

He was accused of attempting to illegally shut down Sinke Plumbing, a company registered in the UK as owing thousands of pounds, while reopening it as Plomberie Sinke – an exact translation of Sinke Plumbing – in south-west France.

This means British creditors can no longer pursue him in the EU using the so-called Brussels Regulation Recast.

Introduced in 2012, it guaranteed the “recognition and enforcement of judgments in civil and commercial matters” across all EU states.

When Britain was part of the EU, the French were able to enforce UK court orders against debtors such as Magurran relatively easily and quickly.

But a direct consequence of Brexit is that court judgments obtained by British consumers at considerable expense are no longer automatically recognised and enforced.

Faced with the bill for thousands of pounds worth of damage in London, Magurran registered Plomberie Sinke in Lévignac-de-Guyenne, east of Bordeaux, using the home address of his mother, Marie Therese Magurran, who is Irish.

Magurran is entitled to Irish citizenship through his mother, and in turn an EU passport that allows him to work in the bloc without restrictions. There is no suggestion his mother is involved.

He now primarily promotes his services across the Dordogne – a department of France which is hugely popular with British retirees and other expats. The French have not been informed about Magurran’s outstanding debts in the UK

He advertises across multiple platforms in France as a plumber, gas installer, and swimming pool fitter.

“It is extremely unjust,” said a female creditor who hired Magurran to work in her home in Westminster, central London, in August 2022.

Asking to remain anonymous “because of fears of intimidation”, the woman said: “He claimed to be a skilled and experienced plumber, but had no idea what he was doing, and caused a huge amount of damage.”

Legal proceedings were initiated against Magurran, and two British judges have since ordered him to pay at least £6,000 in damages and costs.

Magurran ignored the judgments, and tried to shut down his company in Britain while it owed money – something that is illegal under UK law.

The woman said: “We asked him to return to assess the damage, but he refused to come, or to get insurers involved.

“Because he’s in France, there is no hope of getting bailiffs or other law enforcement agencies involved, as would have been possible in the past.”

Companies House documents show that Magurran applied to liquidate Sinke Plumbing Ltd just before he was due to appear at Brentford county court in 2023.

The latest Companies House order against Sinke Plumbing Ltd, in September 2024, states that “striking off action has been temporarily suspended” because of an objection.

Evading justice

Enquiries with the French legal authorities – including financial regulators and police – made it clear that nobody was aware Magurran was evading justice in the UK.

“Plomberie Sinke is now registered as an entity carrying out economic activity in France,” said a finance ministry official.

The French source said it was “technically possible” to pursue those accused of evading British justice in the EU, but “much harder” since Brexit, especially over matters of civil law.

He added: “When Britain was part of the EU, getting British legal rulings enforced in France was extremely simple.”

County court Judgments (CCJs) will have a negative effect on Magurran’s credit rating in the UK, but not in the EU.

If he can avoid enforcement for six years, then he has the chance of seeing the CCJs drop off his record.

However, those who are owed money in the UK need only prove that he is operating abroad, and this will allow them to extend the CCJs for at least another six years.

“Magurran is effectively setting himself up as a fugitive from British justice,” said another source close to the case. “But his creditors will do everything they can to achieve justice, however long it takes.”

When approached, Magurran refused to comment.

Magurran’s case exposes the huge problems British creditors now have in getting CCJs enforced.

A County court money claim is meant to be the last resort for people who are left out of pocket when a trader lets them down, but the system is regularly criticised.

For small claims, the cost of pursuing a defendant can exceed the sum they owe.

According to official figures, around a million CCJs a year remain “unsatisfied”, or unpaid.

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