What happens if you don't pay your business rates

Your rates demand notice tells you how you can pay your bill.

If you’re struggling to make or maintain your payments, contact us to discuss alternative arrangements for paying your bill.

If you fail to pay your bill according to the payment instructions or make alternative arrangements with us, we’ll start the following proceedings to recover the payments you owe.

Reminder

If you fail to pay, the first thing we’ll do is send you a reminder asking you to bring your payments up-to-date.

Within seven days of receiving the reminder, you must pay the outstanding amount or contact us to make an alternative arrangement. If you make alternative payment arrangements and you don’t stick to them, we’ll have to take further recovery action.

At this stage, it's still possible to pay by direct debit. Direct debits for business rates are collected monthly on 5th, 12th, 18th or 25th and can be paid over 10 or 12 months. 

To pay over 10 months, sign up at My Bentax; to pay over 12 months, call the customer services team on (01226) 787787.

Final notice

If you don’t pay any overdue payments after we’ve sent you a reminder, you’ll lose your right to pay your bill by instalments and we’ll issue you a final notice asking you to pay your bill in full within seven days.

If you're unable to pay in full, contact us or call (01226) 787787 to discuss the matter further.

Failure to respond to a reminder or final notice may result in further steps being taken to obtain payment. In such cases, we may be required to make an application to the magistrates court to issue a summons for non- payment.

Summons

If you don’t pay on time, you’ll be issued with a court summons and £52 costs will be added to your account. 

You'll be required to pay the balance in full, including the £52 summons costs before the court hearing date detailed on the summons. This will remove your case from being listed at the court hearing.

If you can’t pay in full before this date, you can make a special arrangement with us, but your case will still be listed at the court hearing.

This means we'll have to include the £52 summons costs and an additional £28 liability order costs from the court hearing, a total of £80 into your special arrangement.

If you do this, you don't need to attend court and the liability order will be granted in your absence.

To make an arrangement, contact us or call (01226) 787787.

Liability order

The summons will set out a court hearing time at which the magistrates will be asked to issue a liability order for non payment.

Additional costs of £28 will be added to your rates account for the cost of the liability order on top of the £52 summons costs, giving a total of £80.

A liability order allows us to take other legal proceedings to recover the outstanding balance if a special arrangement isn't made, such as:

  • referring your account to an enforcement agency
  • applying for your bankruptcy/liquidation
  • applying for you to be sent to prison

If you make a special arrangement with us and stick to it, non of the actions detailed above will be taken against you.

However, if you fail to maintain your arrangement, we'll start proceedings.  

Attending court

If you want to attend the court hearing, the magistrate will ask if you have a valid defence which will stop a liability order being granted.

The most common defences that the magistrates will take into account are:

  • you've paid your bill, including the summons costs
  • you're not responsible for the premises during the period you've been summonsed for
  • bankruptcy/liquidation proceedings have begun
  • you're exempt from paying business rates
  • the premises are not entered on the appropriate valuation list
  • the application for the liability order was made more than six years after the first demand notice was issued

If any of the above apply to you, it's very important that you contact us prior to the court hearing to try to resolve the matter before appearing before the magistrates.

The magistrate will not consider issues such as outstanding valuation appeals or that you can't afford to pay. If you don't have a valid defence, the magistrate will issue a liability order which allows us to take further action if you still fail to pay your business rates.

Enforcement agent

If we pass your case to our enforcement agency, a £75 fee will be added to your account immediately.

You should contact the enforcement agency straight away to discuss payment arrangements to avoid further fees being added to your account.

If you don’t, an enforcement agent will visit you to remove goods to cover the amount you owe and an additional £235 enforcement fee will be added to your account, plus 7.5% of any balance owed over £1,500.

You can make a payment arrangement with the enforcement agent at any stage, but you must sign the controlled goods agreement.

If you don’t keep up your payments, they can remove goods and will charge an additional fee of £110 plus 7.5% of any balance owed over £1,500 - plus reasonable storage and auctioneer fees.

If you make payments to us after your case has been passed to the enforcement agency, your case will remain open with them and they’ll proceed as normal for the remaining balance, including their fees.

Once your case has been passed to the bailiff, it will remain with them until the full debt is cleared.

This course of action can add substantial costs to your account. To avoid this, contact us before the court hearing.

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