What happens if I don't pay my business rates?

If, for any reason, you don't pay your business rates on time we are legally obliged to issue documents advising you of this and to warn you what could happen next. What document you get depends on how many times you have missed your payment. It could be a reminder, final notice or a summons.

Reminder

At the latest, business rates payments should reach us on the day the instalment is due. If you receive a reminder, you must bring your account up to date within seven days. If you fall behind a second time you will not be sent a second reminder.

Final notice

If you fall behind a second time you will receive a final notice. This confirms that you have lost the right to pay by instalments and all of your business rates for the year must be paid immediately.

Summons

If you have received a final notice and your business rates remain unpaid, we will take further recovery action to obtain the money due. This is done through the Magistrates Court. You will be sent a summons that will tell you how much money you owe and when the hearing will be. You will be charged £85.00 costs for the issue of the summons.

At this stage, if you would like to make an arrangement to pay your business rates, please contact the Recovery Section on 01432 260380.

Court

At the court hearing we will ask the magistrates to issue a liability order against you. Please note that you do not have to attend court, for instance if you accept that you are in arrears and you are not objecting to the issue of the liability order. However, if you want to appeal against the issue of a liability order, you have the right to make your case to the magistrates. The court cannot agree a payment plan with you. If you want to do this, please contact the Recovery Section on 01432 260380.

Liability order

A liability order gives us powers to recover the money you owe. Powers include:

• bankruptcy/insolvency
• using bailiffs (Civil Enforcement Agents)
• committal to prison

Bailiffs are authorised with a certificate from the County Court. They are instructed by the council to collect both council tax and business rates and act under a formal code of conduct. They make visits to properties to collect the unpaid council tax or business rates. They can accept payments in a wide range of forms including cash, bankers draft, credit cards etc. Where they do not receive payment they can remove goods which can be sold at public auction.

They can in certain circumstances take possession of goods but leave them on the premises while an arrangement is agreed and paid.

Committal to prison

Unlike almost every other debt, you can be sent to prison for up to three months for not paying your business rates. Even if you have other debts where you are being pressed for payment, it is vital that you make payment your priority.