Recovery of business rates

If payment is not received in accordance with the business rates demand notice, the Council begins a process to recover the debt.

The process is outlined below, starting with the sending of the initial demand notice.

National Non-Domestic Rates (NNDR) are usually known as business rates.

Recovery process

1.  Demand notice

The first instalment is due no less than 14 days after the issue of a demand notice.

2. Reminder notice

If payment is not received within 14 days of the instalment due date, then a reminder notice will be served.

If payment is not received within 7 days of the issue of the reminder notice, then the ratepayer loses the right to instalments, and the full amount is due within 14 days. If payment is still not received after the 14 days then a summons will be issued for the full amount.

Only one reminder per year is required to be issued.

3. Final notice

If a further instalment is not paid later in the year or all instalments are now due then a final notice will be issued

Payment is due within 7 days of issue, to prevent  the issue of a summons for the full amount.

4. Summons

A summons must be served at least 14 days prior to the court hearing and will include costs of £70.

Payment arrangements can be made at this stage, but a liability order will be applied for unless the summons has been paid in full, adjourned or withdrawn. You are strongly advised to contact the Business Rate section upon receipt of a summons to discuss your options.

To make an arrangement please telephone 01737 276691 or 01737 276532 prior to the court hearing. 

5. Liability order

Where a summoned amount remains outstanding an application will be made at the court hearing for a liability order. The application will include further costs of £50.

Once a liability order has been granted, the Council has certain further powers, e.g. to employ enforcement agents, the right to financial information, to instigate committal or bankruptcy proceedings in the case of an individual or winding up proceedings against a company.

Enforcement agents

The Council usually tries to enter into a payment arrangement after considering individual circumstances.

We will only use enforcement agents if the business rate payer has failed to contact the Council prior to this stage, or broken a payment arrangement.  The fees incurred if this becomes necessary are detailed below:

Fee Stage                              Fixed Fee                              Percentage fee: percentage of sum to be recovered exceeding £150.00

Compliance stage                   £75.00                                  Plus 0%

Enforcement stage                  £235.00                                Plus 7.5%

Sale or disposal stage             £110.00                                Plus 7.5%

The compliance stage comprises all activities relating to enforcement from the receipt of the instruction by the Enforcement Agent.  if a payment arrangement is agreed and maintained at this stage, the fee is limited to £75.00.

The enforcement stage comprises all activities relating to enforcement at the premises if a payment arrangement is not made and maintained at the compliance stage; but does not include the commencement of the sale or disposal of good fees.  The fee of £235 (plus a percentage if the debt exceeds £1500.00) is applied at this stage.

The sale or disposal stage comprises all activities relating to enforcement from the first attendance at the property for the purpose of transporting goods to the place of sale, or from commencing preparation for sale if the sale is to be held on the premises.