Non payment of Business Rates

Do I still have to pay if I've appealed against my Rateable Value?

If you have appealed to the District Valuation Officer against your Rateable Value, you must still pay in full while you are waiting for the result. If your appeal is successful, we will refund any overpayment you've made.

What should I do if I receive a Reminder for Business Rates

As soon as you miss a payment we will send you a reminder. If you do not bring your account up to date within 7 days of receiving the reminder you will lose the right to pay the rest of the year’s rates by instalments. This means you will have to pay the rest of the year’s rates in one lump sum.

If you do bring your account up to date, but then miss another payment we will send you a final notice and you will lose your right to pay by instalments.

You will only receive a maximum of 2 notices in any one year, a reminder and a final notice.

If you do not pay after receiving these notices, a summons with costs of £195 will be issued to you.  

What will happen if I receive a Final Notice for Business Rates

If you receive a final notice for Business Rates you have lost your legal right to pay by instalments. The remaining balance is due in full. If you do not pay the full balance shown on the final notice we will send you a summons with costs of £195.00.

What will happen if I receive a summons for Business Rates

If you receive a summons because you have not paid your Business Rates, costs of £195 will be added to your account. At the court hearing, we will ask the magistrates to issue a Liability Order against you. A Liability Order is the Court’s agreement that you are liable to pay Business Rates for the premises in question. Your ability to pay is not a matter that the Magistrates can take into account when issuing a Liability Order. The Liability Order gives the Council extra powers to collect the money that you owe.

If you are liable for this debt and wish to avoid further recovery action being taken, you must have either paid the amount shown on the summons or have agreed a payment arrangement plan with the Revenues and Benefits Service before the court hearing date.

If you are disputing your liability to pay please contact the Revenues and Benefits Service immediately.   We will aim to resolve your query before the court hearing.

Do I need to attend court?

You have the right to attend the Magistrates’ Court. The hearing to which you have been summonsed to appear is known as a ‘Bulk Hearing’. This means that the council has issued a large number of summonses for the same date and time as yours. All of these will be dealt with at the same time.

The court will only hear individual cases if you have a valid defence against the issue of a summons. It is for the courts to decide what a valid defence is.

To help you, we have listed the main defences:

• We have been notified of an amendment to your Rateable Value and your account has not yet been updated
• Small Business Rate, discretionary, mandatory or empty relief has not been awarded although you have applied for it

In all other cases full payment must be made before the court hearing date. Under certain circumstances we may enter into a short term arrangement with you to clear the outstanding balance. In all cases the summons along with the court costs will remain on your account and be included in any arrangement made. With any arrangement made at this stage, you will be required to pay an initial lump sum of at least 50% of the outstanding debt.

Contact Waltham Forest Direct or email us at revenue.services@walthamforest.gov.uk to discuss further.

If you do not make full payment including the costs, or you do not have a payment arrangement we will recover the debt in one of the following ways:

Bankruptcy proceedings

We will apply to the High Court to have you made bankrupt. This is extremely serious action and will badly affect your ability to get credit for a long period of time. Once made bankrupt you cannot be concerned or involved in forming or managing a company without the Court’s permission. You will also incur substantial additional costs and any properties you own can be sold to pay your debt.

Compulsory liquidation

If you run a limited company we may petition for winding up proceedings against your company. This will result in your company being dissolved and you may be disqualified as a director.

Bailiffs (Business Rates)

We will instruct a bailiff company to collect the debt on our behalf. Any payments that you make will then have to be paid direct to the bailiff company. You can be charged extensive fees if your account is passed to the bailiff company and some of your company or personal possessions could be sold at public auction. The money collected from the auction will be used to pay the bailiff fees and the Business Rates that you owe.