Business Rates recovery
Problems paying your Business Rates?
If you are struggling to pay please email business.rates@cherwell-dc.gov.uk as we may be able to offer you a special payment arrangement. We can also check that you have all the reliefs you are entitled to.
You must either:
- pay your Business Rates in full at the start of the financial year
or - by instalments (normally 1st of the month).
What happens if you miss a payment?
Reminders/Final Notice
If you miss a payment, we will send you a Reminder Notice. You must bring your account up to date within seven days of the notice being issued. If you do not, the full remaining Business Rates balance for the financial year will become payable immediately.
Only one Reminder Notice will be issued during a financial year. If you miss another instalment later in the year, a Final Notice will be issued and the remaining balance for the year will become due immediately.
If you are experiencing difficulty making payments after receiving a Reminder or Final Notice, please contact us as soon as possible. We may be able to help arrange an alternative payment plan, particularly if you pay by Direct Debit.
If the missed instalment is not paid by the date specified in the notice, a summons will be issued.
Summons
If payment is not received following a Reminder or Final Notice, legal action will begin.
The summons will show:
- The amount outstanding.
- Details of the court hearing.
- Summons costs that will be added to the account.
If you cannot pay in full and do not wish to challenge the Liability Order, you can apply online for a payment arrangement.
Attending Court
Businesses may attend court on the date shown on the summons and speak with the Magistrates. Council officers will also be available to discuss the account.
Attendance is not compulsory. Please notify us in advance if you intend to attend.
There are limited grounds on which a Liability Order can be refused.
At the hearing, the Council will apply for a Liability Order, which can be granted whether or not the customer attends. Additional costs will be incurred.
Liability Order
What is a Liability Order?
A Liability Order gives the Council legal powers to recover unpaid Business Rates.
Where the summons balance and costs are not paid before the hearing, the Council will apply for a Liability Order.
Recovery action may include:
- Instructing Enforcement Agents.
- Applying a legal charge against property.
- Commencing bankruptcy or liquidation proceedings.
Make a Payment Arrangement
Customers who have received a summons or Liability Order and cannot pay in full can request a payment arrangement online.
Who can apply?
- Customers who have received a summons and cannot pay in full.
- Customers who have a Liability Order and wish to arrange repayment.
Who cannot apply?
Customers whose accounts have already been passed to an Enforcement Agent must deal directly with the Enforcement Agent.
Apply for a Business Rates Payment Arrangement
Before Starting
Customers should have:
- Their Business Rates account number.
- Their property address.
Customers should calculate what they can realistically afford to pay.
The Council will review offers and confirm the outcome within 10 working days.
Please note that arrangements:
- Over 24 instalments; or
- Below £100 per month
are unlikely to be accepted.
Where previous years' arrears exist, customers may arrange repayment of those balances. However, they must continue paying current Business Rates instalments separately. Future Business Rates charges will not automatically be included in any arrangement.
Where an arrangement is requested after a summons has been issued, court proceedings will continue and a Liability Order will be obtained. If payments are maintained as agreed, no further enforcement action will be taken.
What happens if no payment arrangement is made?
The Council may continue recovery through:
- Enforcement Agent action.
- Bankruptcy or liquidation proceedings.
Once recovery action has commenced, it will only be withdrawn in exceptional circumstances.
Enforcement Agents
Customers will receive at least 14 days' written notice before an account is referred to Enforcement Agents, including details of applicable fees.
Enforcement Agent action is generally used where:
- No payment arrangement has been made; or
- An agreed arrangement has not been maintained.
Agents will initially request payment in full. If payment is not received, they may visit the property and take control of goods to the value of the debt and costs.
Agents may remove goods for storage and sale where appropriate.
They must enter the property peacefully through a normal point of entry. They cannot force entry through external doors or windows.
If the debt and associated costs are paid before goods are removed or sold, enforcement action will cease.
Customers may also enter into a Taking Control of Goods Agreement, allowing repayment over time. Failure to maintain the arrangement may lead to goods being removed.
Enforcement Agent fees are set by law. Any payments received after referral will be allocated to Enforcement Agent fees before reducing the Business Rates debt.
Where the debt cannot be recovered or insufficient goods are available, the account may be returned to the Council for further action.
Recovery Costs
These costs are calculated every three years: