What happens if I don't pay my business rates?

If you do not pay your business rates on time, recovery action may be taken against you. This can lead to additional costs and legal proceedings.

If you have given us your phone number or email, we might use it to remind you when a payment is due or if you have missed one.

Reminder notices

If you miss a payment, we will send you a reminder notice. This will tell you how much you need to pay to bring your account up to date.

• You must pay the amount shown within seven days of the notice date.
• If you fail to pay, you will lose the right to pay by instalments and further recovery action may follow.

Court summons

If payment is still not made, we may issue a Summons for you to appear at the Magistrates’ Court.

• A £165 cost will be added to your account.
• The summons will include a court hearing date.
• If you pay the full amount (including the £165) before the hearing, no further action will be taken.

If you can’t pay in full before the hearing:

• you don’t need to attend court.
• we will ask the court to grant a liability order
• this will add a further £55 to your account, bringing the total additional costs to £220.

You can contact our Business Rates Recovery Team to set up a special payment arrangement. Please note: the court cannot agree payment terms with you.

Liability order

If any balance remains unpaid at the hearing, the court may issue a Liability Order.

This adds another £55, bringing the total additional costs to £220.

You don’t have to attend the hearing, but if you do, please note the following are not legal defences:

• you can not afford to pay
• you believe the property should be exempt
• you disagree with the rateable value

We only need to prove that notices were sent, not that they were received.

Enforcement agents

Once a liability order is granted, we may instruct Enforcement Agents (formerly known as bailiffs) to recover the debt. This will incur further fees.

Enforcement charges

Additional costs (if goods are removed and sold)

• Storage, locksmith, and court application fees: Actual costs
• Auctioneer’s commission: Up to 15 per cent of the sale value
• Advertising and internet auction costs: Actual costs
• Exceptional costs: As agreed by the court

Our Appointed Enforcement Agents

• Newlyn: 01604 633 001
• CDER Group: 0330 460 5295
• Rundle: 08456 585 040
• Equita: 01604 628 360

Insolvency proceedings

If the debt remains unpaid, we may begin bankruptcy proceedings (for individuals) or winding-up proceedings (for companies). This is a serious legal process and may result in the loss of assets.

Committal to prison

In some cases, we may apply to the Magistrates’ Court for a means enquiry. If the court finds that you have wilfully refused to pay, you could face a prison sentence.

Need help with business debt?

If you are struggling to pay, you can get free, confidential advice from the Business Debtline.

You can get in touch by phone on 0800 197 6026 (Monday to Friday, 9am to 5.30pm) or visit the Business Debtline website.