What happens if I don't pay?
If you do not pay your business rates, or pay late, you may be subject to recovery proceedings.
Reminder
If you do not pay your business rates as shown in your business rates demand we will send you a reminder notice.
The reminder notice will tell you the amount you have to pay in order to bring your account up to date. You must pay the amount shown on the notice within seven days of the date shown on the reminder.
If you do not pay the amount due you will lose your right to pay by instalments and further recovery proceeding will be issued.
Summons
If you do not pay the business rates demanded on a reminder notice you may be summonsed to appear before the Magistrates Court. This will incur costs of £165 to your account. The summons will include a court hearing date. If the amount due (including the summons cost) is fully paid before the court hearing date then there will be no further action.
If you cannot pay the full amount due before the court hearing date you do not need to attend court. We will ask the court to grant a liability order for the debt.
This will add further costs of £55 to your account. However you can contact the business rates recovery team to set up a special payment arrangement to pay. The court cannot agree payment terms with you.
Liability Order
If any balance on the summons remains unpaid at the hearing, we will ask the court for a liability order to be made with further costs of £55, taking the total cost to £220. You do not have to attend the court hearing however if you do attend please note that the following are not legal defences against the issue of a liability order:
- you cannot afford to pay
- the property should be exempt
- you disagree with the rateable value
We only have to prove to the court that notices have been sent to you, not that they have been received by you.
The Liability Order gives us the right to recover the debt through the following ways:-
Enforcement agents
We can instruct an enforcement agent (formerly bailiff) to collect the debt. This will incur further fees
|
Recovery stage
|
Enforcement charges
|
|
Enforcement Notice
|
£75
|
|
Enforcement Agent Visit to Take Control of Goods
|
£235 + if the debt is above £1500 7.5 per cent of the amount above £1500
|
|
Enforcement Visit to Remove Goods
|
£110 + if the debt is above £1500, 7.5 per cent of the amount above £1500
|
|
Where Removal and sale takes place
|
|
|
Storage Costs
|
Actual costs
|
|
Locksmiths Costs
|
Actual costs
|
|
Any relevant Court Application Fees
|
Actual costs
|
|
Auctioneers costs where the sale is held on the auctioneers premises
|
|
|
Auctioneers Commission
|
Not exceeding 15% of the sum realised
|
|
Auctioneers out of pocket expenses
|
Actual costs
|
|
Reasonable Advertising costs
|
Actual costs
|
|
Internet auction costs
|
Actual costs
|
|
In some circumstances exceptional costs will apply
|
Agreed by Court
|
Our appointed enforcement agents are:
- Newlyn: 01604 633 001
- CDER Group (formerly known as Phoenix): 0330 460 5295
- Rundle: 08456 585 040
- Equita: 01604 628 360
Insolvency Proceedings
We may commence bankruptcy proceeding against you or winding up proceeding against your company. This is a serious matter and you will have to give up any possessions of value or assets.
Committal to Prison
We may, in certain circumstances, apply to the Magistrates Court for a means enquiry. This may result in a prison sentence.
Advice from the Business Debt Line
If you are struggling with your business you can get further advice from the Business Debt Line.
Business Debtline
Tricorn House
51-53 Hagley Road
Edgbaston
Birmingham
B16 8TP
0800 197 6026
Monday to Friday, 9am to 5.30pm
For more information on how to deal with business debt visit the Business debt line website.