Business rates - what happens if I do not pay?
If you do not pay your Business Rates, or pay late, you may be subject to recovery proceedings.
Reminder and Final Notice
If you don't pay your Business Rates as shown on your Business Rates demand we will send you a Reminder Notice. The Reminder Notice will tell you the amount you have to pay in order to bring your account up to date. You must pay the amount within 7 days of the date shown on the Reminder. If you do not pay the amount shown a Final Notice requesting payment in full will be issued, after which if payment is not made a court summons will be issued.
If you do not pay the Business Rates demanded in a Reminder and Final Notice you may be summonsed before the Magistrates Court. This will add a cost of £45.00 to your account.
The summons will show the date of the court hearing.
If the amount due (including the extra cost) is fully paid before the court hearing date then there will be no further action.
If you cannot pay the full amount due before the court hearing date you do not need to attend court. You should contact this office without delay in order to set up a special payment arrangement, (see contact details, bottom of page). Any debt that is outstanding as at the court date (including special arrangements) will incur an additional cost of £50.00 for a liability order.
An additional cost of £50.00 is incurred to your Business Rates account if a Liability Order is issued.
A liability order gives the Council various ways to recover the Business Rates debt.
You do not have to attend the Court Hearing, however if you do attend please note that the following are not legal defences against the issue of a liability order:
- You cannot afford to pay
- You have not been granted a relief
- The property should be exempt
- You disagree with the rateable value
Please Note: Basildon Council only has to prove to the Court that notices have been sent to you, not that they have been received by you.
If you have received a liability order but you have not yet set up a special payment arrangement, please contact this office without delay in order to set up a special payment arrangement, (see contact details, bottom of page)..
The Liability Order gives us the right to recover the debt through the following ways;
- Enforcement Agents
- Basildon Council may decide to instruct an Enforcement Agent to collect the outstanding debt. Should the Council do so, the law allows for fees to be charged. Fees are shown in the following table.
- The Council use 3 different Enforcement Agent companies, these are:
- Newlyns - 01604 633001
- Phoenix - 0844 824 3884
- Rossendales - 0844 701 3981
- oneSource - 0203 373 3588
Please contact the Enforcement Agent direct to discuss a payment arrangement.
|Recovery stage||Enforcement charges|
|Enforcement Agent Visit to Take Control of Goods||£235.00 + if the debt is above £1500.00, 7.5% of the amount above £1500.00|
|Enforcement Visit to Remove Goods||£110.00 + if the debt is above £1500.00, 7.5% of the amount above £1500.00|
|Where Removal and sale takes place|
|Storage Costs||Actual costs|
|Locksmiths Costs||Actual costs|
|Any relevant Court Application Fees||Actual costs|
|Auctioneers costs where the sale is held on the auctioneers premises|
|Auctioneers Commission||Not exceeding 15% of the sum realised|
|Auctioneers out of pocket expenses||Actual costs|
|Reasonable Advertising costs||Actual costs|
|Internet auction costs||Actual costs|
|In some circumstances exceptional costs will apply||Agreed by Court|
- Charging Order - If your debt is over £1,000, we may apply for a Charging Order on any land or property that you own. This will enable us to force a sale of the property or settle the debt from the proceeds of any future sale.
- Insolvency Proceedings - Insolvency proceedings may be taken against you, which if successful may result in you being made bankrupt.
- Committal to Prison - The Council may, in certain circumstances, apply to the Magistrates Court for a means enquiry. This may result in a prison sentence.
If you are struggling to pay your Business Rates, Business Link may be able to offer advice. You can visit the GOV.UK - Business and self-employed website or call 0845 6009006.