What happens if I don’t pay
IF YOU CAN’T PAY
The Council is required by law to take action if business rates are not paid on time.
If you find yourself unable to pay your rates, please contact us as soon as you realise this on 01327 322166 so that we can try and help you.
IF YOU DON’T PAY
Magistrates Court, Liability Orders and the Bailiffs
If you do not get in touch and if you do not pay an instalment on the due date you will receive a reminder. If you don’t pay the amount on the reminder within seven days you will have to pay the whole amount of business rates that you owe for the year.
If you do pay the reminder amount but then miss payments again, we will send you a second and final reminder. If you still do not pay, we will not send you another reminder and you will lose your right to pay by instalments. You will then have to pay the full amount that you owe.
If you do not pay the full balance, we will start legal proceedings and apply to the magistrate’s court for a summons to be issued. This will incur costs of £75.00 which will be added to your account. If you do not clear the balance including the costs by the court date a liability order will be applied for which will incur further costs of £75.00 which will be added to your account.
The liability order allows us to take any one of the following actions:
1. arrange for bailiffs to sell some of your goods to pay for your debt.
2. in the case of sole traders and partnerships, apply for you to go to prison for up to 90 days (if the bailiffs could not get enough money from selling your goods).
If you pay what you owe in full at any time during any of these processes, all action and costs will stop at this point.
High Court, Liquidation and Bankruptcy
If the above processes are unsuccessful and we have not been able to agree a mutually acceptable way forward, we may start bankruptcy or liquidation proceedings against you.
First, we will serve a statutory demand for the amount you owe, which will give you 21 days to settle the debt. If you or your company receive a statutory demand, you should contact us immediately because we will present a petition for bankruptcy or liquidation to the High Court if you do not pay the amount shown on the statutory demand within 21 days.
If a bankruptcy order is granted against you, this will mean that:
- the official receiver will investigate your affairs;
- your bank accounts will be frozen;
- you will lose your credit rating and be blacklisted from getting any more credit; or
- you could be forced to sell your home or other assets to pay your debts.
If you are made bankrupt, the official receiver may control your spending for up to three years.
If your company is placed into liquidation, this will mean that:
- you may be disqualified from being a company director;
- your company will be wound up by the official receiver
- your company's assets will be seized and sold to pay for its debts; or
- your personal bank accounts could be frozen.
We would strongly urge you to contact us at the earliest opportunity if you are having problems paying your council tax. If you receive a Liability Order or Statutory Demand this is a serious matter and requires your immediate attention.