What happens if I don't pay my Business Rates? Click to get info
Instalments for Business Rates are due on the first day of each month. If you don’t pay your instalment or your payment arrives after the first day of each month, you will receive a reminder.
If you continually pay late or do not pay at all, you will receive a final notice or court summons. Once you have received either of these, you will lose your right to pay by instalments, and you will also need to pay the full balance for the year in one payment
Set up a Direct Debit to avoid late payments. Paying by this method will stop the need for us to send you reminders, final notices or summonses, which will add to the amount you owe.
What should I do if I receive a reminder for Business Rates? Click to get info
As soon as you miss a payment, we will send you a reminder. If you do not bring your account up to date within seven 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 two 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 up to £195 will be issued to you.
What will happen if I receive a final notice for Business Rates? Click to get info
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 and you will be charged additional costs of up to £195.
What will happen if I receive a summons for Business Rates? Click to get info
If you receive a summons because you have not paid your Business Rates, costs of £179.50 will be added to your account. At the court hearing, we will ask the magistrates to issue a liability order against you and further costs of £20. The £20 will be added to your account after the hearing, making the total costs payable £199.50.
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 will 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 us immediately. We will aim to resolve your query before the court hearing.
Can I make a payment arrangement? Click to get info
If you would like to make a payment arrangement to clear your outstanding balance please complete our arrangement form where you can submit a proposal to pay.
Please note that if you have received a summons we will still proceed in obtaining a Liability Order if full payment is not made prior to hearing. Therefore, any arrangement agreed will be subject to both the summons & liability order costs.
Do I need to attend court? Click to get info
Please read the accompanying notice to your summons. It sets out what you need to do, and what we are doing, to protect your health during Covid-19:
Do not turn up to court , you must contact the council to make a virtual timed appointment as you may not be allowed into the court building. you need to do, and what we are doing, to protect your health during Covid-19: Do not turn up to court without a timed appointment as you may not be allowed into the building.
Whilst you have the right to attend the Magistrates’ court by a virtual appointment, you do not need to arrange this unless you are disputing the debt is owed. If you feel you should not be liable for the summons received, we would be keen to try and resolve the matter prior to the court date. In order to contact us in relation to the summons please email us at firstname.lastname@example.org Please include the subject line as ‘Business Rates Summons’ and outline the reasons as to why you do not feel you are liable for the summons amount.
The hearing to which you have been summoned 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 is a valid defence.
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 Rates, 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 to avoid a liability order being obtained.
You can enter an arrangement with us to repay the outstanding amount inclusive of costs. You can do this by accepting the provisional arrangement offered to you on the front of your summons.
If you are unable to meet the repayments of the provisional arrangement offered, you can submit an alternative arrange offer via our arrangement form.
On receipt of your offer of arrangement a Business Rates officer will consider your proposal and respond accordingly. Please commence payment in line with your offer of payment whilst you await response.
In all cases where an arrangement is made the liability order along with the court costs will be included and remain on your account.
If you do not make full payment including the costs, or you do not have an agreed payment arrangement, we will recover the debt in one of the following ways:
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 of between £1,500 and in excess of £40,000 and any properties you own can be sold to pay your debt.
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/enforcement agents (Business Rates)
We will instruct enforcement agents to collect the debt on our behalf. Any payments that you make will then have to be paid direct to the enforcement agents.
The enforcement agents will charge fees of £75 when your account is passed to them. If you fail to make contact with them within seven days an enforcement fee of £235 will be charged. If you owe more than £1,500 an additional 7.5 per cent will be charged. 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 enforcement fees and the Business Rates that you owe.