Non Domestic Rates – Collection and Enforcement

It is the Council’s aim to collect all statutory instalments of Non Domestic Rates as they become due.

Wherever possible, this will be achieved by encouraging the use of the Direct Debit payment System.

The Council will try to be as responsive as possible to the individual needs of the Non Domestic Ratepayer.  If you are experiencing difficulty in paying you are advised to contact the Non Domestic Rates section as early as possible.  At all times the Council will adhere to the current regulations and will also take account of the Council’s customer care policy.

The policy used in the collection and recovery of Non Domestic Rates is determined in advance in order that all ratepayers are treated fairly.

The Collection Process

This is governed by the Local Government Finance Act 1988 and the Non Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989.

Demand and Reminder Notices

The law states that:

• The Non Domestic Rate Bill is issued for an annual charge and you have the right to pay by monthly instalments

• If you are late paying an instalment, the Council will issue a reminder Notice.

• If you do not make a payment within 7 days of a Reminder Notice being issued the right to pay by instalments is lost and the whole balance for the remainder of the year becomes due.

• If you are late paying an instalment on a second occasion a Final Notice will be issued for the whole balance remaining.

If you bring your instalments up to date, you can still take advantage of the Direct Debit payment system, details of which are on the reverse of the Demand, Reminder and Final Notice.

Magistrates Court

If the whole amount for the year has become due and payment is not made in full, you will be summonsed to the Magistrates Court where the Council will apply for a Liability Order.

A summons is a legal notice requiring that your case appears before the Magistrates Court.

You are entitled to attend Court, however, there is no need unless you dispute that you are liable to pay the Non Domestic Rates, inability to pay is not a defence.

Valid defences are

• You are not liable for the period as stated on the demand notice

• The Non Domestic Rate has not been demanded in accordance with the statutory regulation

• The amount demanded has been paid in full

• More than six years has elapsed since the day on which the charge become due

• Bankruptcy (including Individual Voluntary Arrangements) receivership or winding up proceedings have been initiated.

An outstanding appeal against the Rateable Value of your property is not a valid defence against the granting of a Liability Order.   Payment should be made as stated on your latest demand notice.

IF YOU ARE HAVING DIFFICULTY PAYING YOUR NON DOMESTIC RATES, THERE IS NO NEED TO ATTEND COURT BUT YOU SHOULD CONTACT THE COUNCIL DIRECTLY AS SOON AS POSSIBLE TO DISCUSS AN ARRANGEMENT FOR PAYMENT.

If you choose to attend court without a valid defence against the granting of a Liability Order (see above) you could increase the amount of costs awarded against you.

Enforcement

If a Liability Order has been granted, the Council has the right to determine the next stage of enforcement.  If no contact or arrangement to pay has been made the following options are available to the Council:-

• Bailiff Action

• Committal to Prison

• Petition to the Court for a declaration of Bankruptcy

• Petition to the Court for a Winding up Order

• Application for a Charging Order on the property

All the above options may be used in any order but not more than one at the same time.

If your case is passed to the Council’s bailiff, you should contact them as soon as possible.  If the Council instructs Bailiffs to remove goods, it will cost you extra charges.  

The Council currently has contracts with two bailiff companies, M A Julious and Co Limited and Rossendales.com

Committals to Prison

The law requires that every form of recovery action must be considered prior to the Council applying for Committal to Prison.  The Council wishes to avoid committal wherever possible, but has a strict policy of taking such proceedings where no other form of recovery is appropriate.

Costs

• Application for a Liability Order (Summons) £36.00

• Liability order - £20.00

• Bailiff Fees – First Visit - £24.50

• Second Visit - £19.00

• Attendance to remove goods - £95.00

These are examples of the costs which may be incurred, it is not a full list

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