Recovery - What happens if I don't pay?
Contact us
If you are struggling to pay your business rates, please Contact Us or call the business rates team on 01842 756568. We may be able to reschedule your payments or advise you of a relief or reduction which you may be entitled to. Please see Relief and Exemptions for further information.
What happens if you don’t pay your business rates?
If you fail to pay your business rates instalments by the date given on your bill, recovery action will commence in accordance with the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989:
- If you miss a business rates payment instalment we will send you a reminder notice, which will ask for the payment within seven days.
To make a payment visit: Pay Your Business Rates or to set up a direct debit visit: Do It Online
- If payment is not made within seven days, you will lose the right to pay your business rates by instalments and we will issue a final notice, which means the total balance of your account will become due.
- If following a reminder and final notice the bill remains unpaid, a magistrate’s court summons will be issued.
A summons is an order for you to attend a magistrate’s court, where the council will apply for a Liability Order which gives the council further powers to recover the debt outstanding. You do not need to attend but the hearing will still take place in your absence and any costs from the administration of the court summons will be added to your final business rates bill.
- If you pay the amount of business rates you owe before the court hearing, then no further action will be taken.
- If you cannot pay in full, please Contact Us to discuss a payment arrangement, if we can reach an agreement the matter will still go to Court, but no action will be taken on the Liability Order issued whilst you pay as arranged.
What happens if the court grants a Liability Order?
If you do not contact us to discuss a payment arrangement to clear your outstanding debt, the Liability order granted by the court will be sent to Enforcement Agents to collect the debt on the council's behalf.
If the debt is passed to the Enforcement Agent, further costs will be incurred as detailed below:
- Compliance Stage - Fee £75 this fee is incurred as soon as your case is received by the Enforcement Agency.
- Enforcement Stage - Fee £235 plus 7.5% of the value of the original debt which exceeds £1,500.
- Sale Stage - Fee £110 plus 7.5% of the value of the original debt which exceeds £1,500.
What if I am still unable or unwilling to pay?
The council may commence Bankruptcy or Liquidation proceedings against you or your company. The council may also consider making an application to the Magistrates for your committal to prison for non-payment. We will only take these steps when other efforts have failed and when Enforcement Agents have been unsuccessful.
We would much rather work with you to settle any outstanding bills outside court and we encourage you to Contact Us, if you are facing difficulties in paying your business rates.