What happens if I don't pay?

If you get into difficulties and you cannot afford your payments you should contact the business rates section straight away to see if we can help you by making a different payment arrangement.

If you are awaiting the outcome of an appeal against your rateable value, you must continue to pay as billed (there is no legal right to withhold payment pending an appeal. However, it does specify that any overpayment arising as a result of any reduction in rateable value is refunded, together with any interest applicable.

These are the different stages in the recovery process and an explanation of what each stage means for you as a ratepayer.

Bill / Demand Notice

  • Why is it sent?
    The bill will show an estimate of how much business rates you owe for the year, the amount of each instalment and the due date. The bill is normally sent at the start of the financial year. However, a bill will also be issued if your rates bill alters during the year (eg changes in relief entitlement, rateable value) or you move in or out of  business premises), Business rates are normally payable over ten instalments, although you can request that payments are made over 12 instalments.
  • What should I do?
    Pay the instalments before the due dates as the payment is due on your account by the instalment date.
  • What if I cannot pay as billed?
    Pay as much as possible as regularly as possible. If you are paying less than the due amount or paying after the due date then you may receive further notices.

First Reminder

  • Why is it sent?
    This is sent because our records show that you have fallen behind with your payments. This usually means you have not paid an instalment on time or that you paid less than you should have done.
  • What should I do?
    You should bring your account back up to date within the specified time. If an account is brought back up to date and kept up to date, no further letters will be sent.
  • What if I cannot do this?
    If you do not bring your payments up to date you will lose your right to pay by instalments. No further reminders will be issued and the next document you receive will be a court summons for the full balance on your account. Court costs will be incurred at this stage.

If you are unable to pay as required you must contact the Business Rates team immediately. It may be possible to agree an arrangement. 

Final notice

  • Why is it sent?
    This is normally sent if you have not brought your account up to date. This letter will not be asking for the instalments that have been missed. This letter will cancel your right to pay by instalments and you will be asked to pay the remaining balance on your account in full.it is also sent where amounts remain outstanding for previous years.
  • What should I do?
    You must pay the balance on your account in full within the specified time. If you pay the account in full you will not be sent any more letters.
  • What if I cannot do this?
    If you do not pay the account in full you will be sent a Magistrates' Court Summons. If you cannot pay in full you should pay as much as possible as regularly as possible. The original instalment facility cannot be reinstated. However, if you contact the Business Rates team, we can discuss a payment arrangement which avoids the need to take further recovery action as long as payments are maintained.

Magistrates Court Summons

  • Why is it sent?
    This is sent to tell you that, because you are in arrears, the Council is going to Court to obtain a Liability Order against you. This is a legal document which states how much you owe us and it gives us the power to send your account to the Enforcement Agents if necessary. Costs will be added to accounts for the Summons being sent.
  • What should I do?
    You must pay in full before the Court date. If you pay the balance in full (including costs) before the Court Date you will not be sent any more letters.
  • What if I cannot do this?
    If you cannot pay before the Court Date, but wish to make an arrangement to clear your account please contact us straight away. Any arrangement that you make will still include the summons costs, plus further Liability Order costs unless you are able to pay in full before the Court date. Provided that you keep to the arrangement we will not take any further action against you.

Once an account has been to Court there are various courses of action that we may take, depending on what we believe is the best way to secure payment. These are:

  1. asking our enforcement agents to collect the debt by removing and selling some of your possessions which will result in you having to pay their fees 
  2. commencing insolvency proceedings through the County Court.
  3. applying to the County Court for a charging order on your property that enables us to force its sale or repay your business rates out of the proceeds of any future sale. This will also result in you paying additional fees.
  4. In some cases, if you continue not to pay we can return to court. The court may decide to send you to prison, order you to pay, or tell us to write off part or all of the debt

Changes to Enforcement

Since 6 April 2014 Bailiffs have been known as Enforcement Agents.

The Government introduced new legislation that changed the way enforcement agents operate and collect debts. This is intended to create a new open, transparent and sustainable process which protects the vulnerable against what is often perceived as aggressive bailiff practices. The principles behind the rules are aimed at reducing physical door step activity with the enforcement agent, and having a set and clear fee regime. For further information see  Bailiff powers when they visit your home

See also