If we need to collect unpaid business rates

If you are having difficulties in paying your business rates, it’s important to get in touch straight away. 

If you do not tell us there is a problem then debt recovery action could be started, which may result in magistrates’ court action. 

We would rather not have to do this and can put you in touch with local and national debt advice services who may be able to help. Contact us using the details at the bottom of this page.

If you have already received a letter from us about unpaid business rates and are wondering what to do, the information below should help.

Our process for recovering missed payments

There are various stages to this process. 

First reminder

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. It may also be sent if you still owe money from a previous year.

What you should do

Bring your account back up to date within the specified time. If an account is brought up to date, and kept up to date, no further letters will be sent.

If you do not bring your payments up to date you could 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 us straight away.

Final reminder

This is normally sent if you have had a first reminder, brought your account up to date and then fallen behind for a second time. 

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.

What you should do

You must now 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.

If you are unable to pay as required you must contact us immediately to discuss payment of your account.

Magistrates court summons

This is sent to tell you that because you are in arrears and we are 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 bailiff. 

Costs of £100 will be added to accounts at the summons stage.

What you should 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.

If you cannot pay before the court date, but wish to make an arrangement to clear your account contact us straight away. 

Any arrangement that you make will still include the costs, but if you keep to the arrangement we will not take any further action against you.

After court action

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

Make an arrangement

You can make an arrangement to clear your arrears by making regular weekly, fortnightly or monthly payments. 

Arrangements can be made by post, telephone or by visiting one of our offices. It is normal policy to make arrangements that will clear the arrears within the financial year. 

Arrangements that go beyond this date are at our discretion.

If an arrangement is broken, we will take one of the following courses of action.

Enforcement agents (bailiffs)

We may pass your account to an enforcement agent for collection. Any arrangements for payment on accounts held by the enforcement agent must be made direct to their offices and not us.

Equally, any queries about enforcement agent fees must be addressed to the enforcement agent directly. 

Once an account is passed to the enforcement agent we will not ask for it to be returned unless there are exceptional circumstances.

Committal proceedings (sole trader/named on bill)

Where no other form of recovery has been successful, we may commence proceedings to have an individual committed to prison or declared bankrupt, or a company put into liquidation.

If you receive a committal warning you must make an arrangement to clear the debt. If committal action is taken it will be for the amount of business rates owed and any enforcement agent and court fees.

Failure to make payments, or an arrangement for payment, could result in you being committed to prison for a maximum of three months.

Bankruptcy proceedings

If a liability order has been granted for over £5,000, we can petition for your bankruptcy (sole trader), or liquidation (company). 

You will be served with a statutory demand giving you 21 days to clear the debt in full. If you cannot pay, the council would seek to make you bankrupt. 

This action, if successful, will affect your credit rating and may lead to you losing your home and any other assets which you own.