Reminders
If you do not keep up to date with your business rates installments a reminder notice may be sent after ten days. If you do not bring your installments up to date within seven days you will lose the right to pay by installments and the whole debt will then become due.
If, after receiving a reminder, you then bring your installments up to date but subsequently fall behind, you will be issued with a Final Notice you will lose the right to pay by installments and the whole debt will then become due.
Failure to pay after receiving any of these notices will result in a complaint being made to the magistrates court for the issue of a summons.
Summons
If you receive a summons you are required to pay the sum due, plus costs, straight away. If you do not pay the whole balance before the date of the hearing, the council will apply to the magistrates court for a Liability Order and there will be a further cost.
The Liability Order will give the council the authority to recover the unpaid sum.
You will have the option to make an arrangement to pay the outstanding sum, including the costs. This arrangement will be a mutually agreed amount. The arrangement to pay must be maintained if further recovery action is to be prevented.
Further action
The council can take further action if the amount summoned is not paid in full, with costs.
Bailiff
The council can instruct the bailiffs to collect the debt for them and there will be further costs.
The bailiff will write and/or visit you to try to obtain payment in full. If you are unable to pay the debt in full and require time to make payment the bailiff will normally enter into a walking possession agreement with you. They will make an inventory of your assets up to a sale value of the debt and the costs. You will be required to sign this and there will be an additional levy fee and walking possession fee to pay. Provided you keep to your agreement to pay the bailiff there will be no additional costs.
When your goods are subject to a walking possession agreement you may not dispose of the goods without the bailiff’s permission.
Security for unpaid rates
The council can make an application to the county court to secure a charge on the property that has accrued the debt, if owned by the business. This agreement will include any future rates due, plus interest.
Insolvency
If the debt is more than £750, action can be taken to bankrupt an individual or wind up a company.
Committal
If bailiff action has resulted in the debt not being cleared, for example, because there were insufficient goods or the bailiffs were unable to gain entry, then a Committal Summons can be issued. The rate payer on the liability order will then be required to appear in court and give details, under oath, of their financial details. Failure to appear at court will result in an arrest warrant being issued. If the magistrates believe that there has been wilful refusal or neglect to pay then the person can be sent to prison for up to 90 days. The court can also place an order to pay over a period of time.
Payment difficulties
If you have any difficulty paying your Business Rates please contact us on 01284 757295 or email revenue@steds.gov.uk immediately. We are happy to talk about the situation and discuss a short-term payment plan with you.
