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Business Rates 

The liability order gives us the following powers:

  • The power to instruct bailiffs to collect the debt
  • The power to start insolvency proceedings through the County Court for your personal bankruptcy or corporate liquidation
  • The power to seek your committal to prison

The power to instruct bailiffs to collect the debt

If you have not made a suitable payment arrangement, then we have the power, under a liability order, to use bailiffs to collect any amount of business rates due. This will add more costs to the amount you have to pay.

The bailiffs recover the debt you owe by removing and selling your goods. They can remove goods up to the value of the money you owe, plus their own costs. The goods will then be sold at public auction.

If you ask, the bailiffs must give you a receipt for all the money you give them.

Bailiffs are not allowed to break open a door but may enter your property if a door is open, or if it is closed and can be opened without using force.

They can also enter through an open window. When the bailiffs are inside your property, they can force any internal locked doors.

The bailiffs can take almost any goods that you own. If you pay your debt, including all costs, before any goods are taken or sold, the seizure or sale will be stopped.

You can keep your goods in your property if you have done one of the following:

  • Signed an agreement for the bailiff to stay in your property until you have paid your debt or the goods are removed for sale
  • Signed an agreement that holds the goods so the bailiff can leave and return at a later date if you do not pay the debt

If the bailiff does return to remove the goods, you do not have to be there.

Before making a payment arrangement, the bailiff will normally hold the goods and ask you to sign an agreement to hand over the goods if you do not pay.

Bailiffs will come to your premises with a removal van and remove any of your goods. They will put them in secure storage before they are sold at auction.

The power to start insolvency proceedings through the County Court for your personal bankruptcy or corporate liquidation

Following the issue of a liability order, the council becomes your creditor. This enables us to:

  • Petition to the court for a Declaration of Bankruptcy against you as an individual
  • Petition to the court for a Winding Up Order against your company

Both of these courses of action will have a significant effect on you. We urge you to seek immediate legal advice should the council start these proceedings against you.

The power to seek your committal to prison

If we are unable to recover business rates by alternative courses of action available to us, and you are a sole trader, we will apply to a Magistrates Court for a committal summons.

This is the first stage of possible imprisonment.

If you receive a committal summons, you should immediately:

  • Contact us
  • Get legal advice from a solicitor, your local law centre or Citizens Advice Bureau

If you pay in full, you do not need to go to court. If you do not pay in full, you must go to the court shown on the summons.

The court hearing

The court will assess your income and spending to decide whether you should go to prison. You must bring evidence of your income and spending to court if possible.

If you do not go to the hearing, the court will issue a warrant for your immediate arrest.

If you are arrested, you will be taken into custody where you will have to wait for your hearing.

These are very serious matters. Do not ignore the committal summons. Please contact us at the address shown immediately. If you do not contact us immediately, you may go to prison.

 

Business Rates Team

PO Box 2807

Romford

Essex

RM7 1FJ

 

Phone: 020 8227 2934

Fax: 020 8227 2574

Email: businessrates@lbbd.gov.uk

 

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