Non-payment of business rates - Print version

If you are experiencing financial difficulties and cannot afford to pay your business rates, you should contact us immediately, so that we can check to make sure you receive the discounts and reliefs to which you are entitled.

By law, we must send a reminder notice if your instalments are not up to date.

If a reminder notice is issued and you do not bring your instalments up to date within 14 days, then the right to pay by instalments will be withdrawn. If full payment is not received you will be sent a Magistrates' Court summons and you will have to pay additional court costs as well as your Business Rates charge. The Council will apply to the Court for a liability order against the account, which grants us further powers to collect the money outstanding. The account may then be issued to an Enforcement Agent, who will collect the money on our behalf, referred for insolvency proceedings or back to Magistrates' Court for committal to prison proceedings.

If you have received a Magistrates’ Court summons you should contact:

Business Rates Team
Telephone on 024 7683 2525 or email businessrates@coventry.gov.uk [mailto:businessrates@coventry.gov.uk].

After the summons hearing date you should contact:

Enforcement Team
Telephone: 024 7683 1544 or email enforcement@coventry.gov.uk [mailto:enforcement@coventry.gov.uk].

If your account has been issued to the Enforcement Agent, you should make any payments direct to them. They may be willing to make a short-term payment arrangement with you. If you still do not make payment, or default on an agreed payment arrangement, the enforcement agent may remove goods from your property. The goods will then be sold to cover the balance outstanding and the Enforcement Agent’s costs.

If the Enforcement Agent is unable to collect the amount due, we may begin insolvency proceedings, to declare you bankrupt or wind up your company, or as a last resort we may commence committal proceedings in the Magistrates’ Court which could result in a term of imprisonment.

We employ two Enforcement Agents. They are:

and

The enforcement agent process

1. The Enforcement Agent administration stage is where the enforcement starts initial contact with the debtor. This results in administration fees being charged to the debtor but allows the debtor a period of notice to come to a payment arrangement.
2. The next stage, called the enforcement stage, involves visiting the debtor’s property. This attracts a set fee to cover the enforcement agent’s work at this stage plus a further percentage fee for debts over a certain value.
3. If the Enforcement Agent seizes goods, the sale of the goods stage attracts further costs including fees to cover the removal of the goods and costs of re-selling them. A further percentage fee is charged for debts over a certain value.

Relevant legislation:

• Taking Control of Goods Regulations 2013 [http://www.legislation.gov.uk/uksi/2013/1894/contents/made]
• Taking Control of Goods (fees) Regulations 2014 [http://www.legislation.gov.uk/uksi/2014/1/contents/made]

If you receive a court summons

Why have I been sent this summons?

Because you have missed one or more business rates payments you have lost the right to pay your business rates by instalments. You have failed to pay the full amount outstanding,

How can I sort this out? (Court costs are still payable)

• Pay the balance in full online [/info/14/business_rates/2283/paying_business_rates] within 14 days of the date of the summons or by telephoning 024 7683 2525.
• Sign up to pay by Direct Debit online [/info/14/business_rates/2283/paying_business_rates] or by telephoning 024 7683 2525. If you do this within 7 days of the date of the summons we may give you back your monthly instalments.
• Phone us on 024 7683 2525 if you cannot pay within 14 days of the date of the summons. Tell us details about your income and expenditure and we may give you monthly instalments.

See how to pay business rates [/info/14/business_rates/2283/paying_business_rates] for more details.

On the day of the hearing

If needed, you can attend Broadgate House, Customer Service Centre between 10.00 am to 11.30 am. Facilities will be in place for you to have a discussion with one of the Council's officers.

If you attend the Court on the day of the hearing you will be asked to attend Broadgate House to speak to a Council officer. If your query cannot be resolved and you wish to go before the Court because you believe you have a valid defence against the proceedings, the Council will liaise with the Court to arrange a date and time at which you can attend.

Why have I been charged court costs?

The Council is allowed to charge you reasonable costs for issuing the summons, which you must pay. The court costs cover expenses incurred such as administration, computer and Magistrates' court fees.

Do I need to attend the Magistrates' Court?

Your attendance is not required at court if you have paid the balance in full including the court costs.

If we make an arrangement for you to repay the debt then you do not need to attend and we will take no further action against you as long as payments are maintained, however we will still ask the Court for a liability order. 

What will happen if I do not pay in full or make an arrangement?

We will ask the Magistrates to issue a liability order against you. The liability order gives us various legal that we will use if you do not pay in full or make an arrangement to pay.

These powers include:

• Sending your debt to an Enforcement Agent. You will incur an immediate charge of £75 rising to a minimum of £310 if the debt remains unpaid. Enforcement Agents may take your goods or vehicles and sell them at auction.
• Start proceedings to make you bankrupt. This may result in you losing your home and/or business.
• Start committal proceedings which could result in you being sent to prison.

Independent advice agencies

Free independent and impartial advice [https://www.coventry.gov.uk/debtadvice].