Summary
This page contains advice about what to do it your Business Rates payments are in arrears.
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Advice if your Business Rates are in Arrears
If you miss a business rate instalment you will be sent a reminder notice giving you 7 days to bring your payments up to date. If you bring your account up to date you may continue to pay by instalments. If you fall behind a second time, or do not pay a first reminder within the 7 days allowed, you will lose the right to pay by instalments. You will then have to pay the outstanding balance of your business rates bill in full.
If the balance is not paid we will commence recovery action. This means that we apply to the Magistrates Court for a liability order. You will be sent a summons telling you when the Court will consider the application, and the amount that we are seeking to recover, which will include additional costs. You have the right to attend the Court hearing and offer evidence why the liability order should not be granted.
However, the Court can not consider any evidence that relates to an appeal. Such matters must be dealt with by the Valuation Office Agency, and business rates must be paid pending the outcome of any appeal. If your appeal is successful you may be entitled to interest on any overpayment, provided that a liability order has not been granted.
You do not have to attend the Court hearing if you agree that you owe the amount shown on the summons. You should, however, contact us when you receive the summons, to try and agree a payment arrangement if you are unable to pay the whole balance in full.
A liability order gives us powers to recover arrears of business rates by a number of methods including:
1. Baliff Action
We employ an external firm of bailiffs to recover arrears. This can add considerable extra costs to the arrears and you will be liable to pay these. The bailiff will expect payment in full immediately. If you are unable to do this the bailiff has three options:
a. they can agree a walking possession agreement with you. This means they will levy distress on your possessions up to the value of the arrears but also agree a payment arrangement with you. The goods will not be removed for sale provided that you maintain the payments.
b. they can take close possession of your goods. This means they levy distress and remains on the premises until payment in full is received or the goods are removed for sale.
c. they can remove goods immediately to be sold to repay the arrears.
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