Business Rate Arrears Advice
This page provides information to businesses about how the Council will collect business rates where payments are not made. Information is also provided about how to contact the National Debtline
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 cannot 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 a 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.
2. Commitment to Prison
We may apply to the magistrates court for a warrant committing you to prision. This action is only taken when other efforts have failed and when the bailiffs have tried unsuccessfully to levy distress.
Before deciding whether to commit you to prison the magistrates must hold an enquiry into your conduct and means and will issue a summons so that you are present at the court. If you do not attend the court hearing in answer to the summons, we will make application for a warrant for your arrest to be issued to ensure your attendance at a future court hearing.
If the court decide that your non payment is due to wilful refusal or culpable neglect they have the power to send you to prison for a maximum period of 3 months.
The court may decide to fix a term of imprisonment but postpone issuing the warrant of commitment provided that you make payments as ordered by the court. They also have the power to remit the debt if they are satisfied that there is an in ability to pay and have not already found that non-payment is due to willful refusal or culpable neglect and fixed a term of imprisonment.
Note: You may be able to prevent some or all of the above enforcement action if you contact the Revenues Section as soon as you are unable to pay an instalment.
If you are having problems paying your business rates and feel that you are having financial difficulties you can contact the National Debtline on 0808 808 4000 for free confidential and independent advice. Your local Citizens Advice Bureau may also be able to help if you have debt problems.
Frequently Asked Questions (13)
SBRR is only available to a ratepayer with either:
One property with a rateable value of less than £18,000 in England; or
One main property and other additional occupied properties in England providing these additional properties each have a rateable value under £2,600 and the total value of all the properties (including the main property) remains under £18,000. SBRR is only payable on the main property
If you think that you may qualify, and need an application form or further advice please contact the Business Rates section.
Your bill is calculated by multiplying the RV (Ratebale Value) by the annual multiplier set by the Government.
Please contact the Business rates section at the Council who will advise what details are required
Please inform the Business Rates section at the Council immediately and supply appropriate documentary evidence to support the revised dates
In the first instance, please make your request in writing or send an email to the Business Rates section at the Council. Documentary evidence may be required for retrospective periods. For further information please contact the Business Rates section.
With effect from the 1 April 2011, no empty rates will be charged if the property is empty and any of the following apply:
Rateable Value is less than £2,600.
The property is a Listed Building.
The ratepayer is a charitable organisation or a registered Community Amateur Sports Club (CASC).
The ratepayer is bankrupt or in liquidation.
The ratepayer is a company in administration.
The ratepayer is entitled to occupy as an executor of a deceased person.
Occupation of the property is prohibited by law.
In addition to the above, if the property description is either workshop, warehouse or factory, the ratepayer will be entitled to a six month exemption from rates. After this period ends, full rates will become payable as if the property was occupied.
If the property is empty but does not fall within any of the above full or partial exemptions, full rates will become payable after an initial period of three months. During this initial 3 month period, no rates are payable.
For further information please contact the Business Rates section.
2000/01 – 0.416
2001/02 – 0.430
2002/03 – 0.437
2003/04 – 0.444
2004/05 – 0.456
2005/06 – 0.422 / 0.415 (Small Business Rate Relief qualifiers)
2006/07 - 0.433 / 0.426 (Small Business Rate Relief qualifiers)
2007/08 - 0.444 / 0.441 (Small Business Rate Relief qualifiers)
2008/09 - 0.462 / 0.458 (Small Business Rate Relief qualifiers)
2009/10 - 0.485 / 0.481 (Small Business Rate Relief qualifiers)
2010/11 - 0.414 / 0.407 (Small Business Rate Relief qualifiers)
2011/12 - 0.433 / 0.426 (Small Business Rate Relief qualifiers)
NNDR stands for National Non Domestic Rates, more commonly known as Business Rates. Throughout this website NNDR is referred to as Business Rates.
You will receive a reminder for the first instalment that is late. If you want to carry on paying by instalments, you must pay the amount shown on the reminder within 7 days. If you do not pay this amount within 7 days, you will lose you right to pay by instalments and you will have to pay the full balance of your business rates after a further 7 days.
If we cancel your instalments because you have not paid on time, we will apply to the Magistrates Court for a Summons to be issued against you to enable recovery of the whole outstanding balance.
In accordance with current rating legislation, the liability for Business Rates falls upon the occupier of the premises. This is regardless of stipulations within your tenancy agreement, as the Council can not enter into third party agreements between you and your landlord. In the event of the property being vacant, liability falls upon the 'owner', defined as the person entitled to possession of the property, again regardless of any third party agreements that you may have.
If you receive a bill showing a credit you will need to complete the refund request form enclosed with the bill, or make a written request for a refund. An overpayment due to an amendment from the Valuation Office will qualify for interest to be added to the refund. However, no interest will be applied if a Liability Order has been granted against the relevant year.
For ratepayers with arrears on previous years or other properties, any overpayment will normally be offset against those arrears
The RV (rateable value) of a property is assessed by the Valuation Office Agency (VOA) who are an independent Government agency. The RV forms the basis of the calculation of your business rates liability. If you feel that your rates bill is too high, or if you have a valuation matter you wish to discuss, please address it to the VOA.
Instalments detailed on your rates bill must continue to be made on the basis of the existing assessment as it appears in the current rating list, even whilst an appeal is outstanding. Once official notification is received from the VOA of an amendment to the list, any necessary alterations to your account will be made and any appropriate refund issued, with interest for a qualifying overpayment.
Charitable Organisations are entitled to Mandatory Relief where the property they occupy is used wholly or mainly for charitable purposes. Relief is given at 80% of the rates due. The Council has the discretion to give an additional relief, known as Discretionary Rate Relief, of up to 20% to such charities. For further information and to apply, please contact the Business Rates section.
Last updated: Monday, 18 July 2011 9:28 am
