18. Billing &
Collection
Billing and Collection covers the topics
listed below and incorporates the issuing of a bill, known as a
demand notice, the various payment arrangements and the early
stages to be completed in the event of non-payment. The later
stages following non-payment are known as
recovery and
enforcement.
18.1 The Demand
Notice
Each financial year a billing authority must
serve a separate bill, a demand notice, on every business ratepayer
for every property for which they are liable. Regulations specify
the contents of a demand notice but if one does not comply with the
regulations and the failure was due to a mistake but the amount to
be paid was correct then the requirement to pay will apply as if
the notice were valid. Where an invalid notice is served the
billing authority must issue the ratepayer a statement of the
matters which were not contained and which should have been.
The demand notice must contain the:
- Name and address of the person to whom it relates
- Address of the property to which it relates
- Date it is issued
- Period to which it relates
- Rateable value of the property to which it relates
- Rate in the pound
- Amount due
- Amount of any relief
- Amount of any instalments
- Instalment due dates
- Statement of payment methods
- Explanatory notes about the valuation list, exemptions and
reliefs
- Address and telephone number to which liability enquiries may
be directed
- Valuation Officer address
- Procedures to dispute any matter
18.2 Service of
the demand notice and other notices
With the exception of the service of a
summons the rules regarding service of demand notices and other
notices state that service may be done by hand or by leaving it at,
or posting it to, the 'proper address'. If the name of the person
on whom a demand notice or other notice is to be served cannot be
ascertained it may be served on "The Business Ratepayer", "The
Occupier", "The Owner" or another such self-explanatory
description.
Where the property is land the service can be
completed by leaving it in the hand of a person who is, or appears
to be, resident or employed on the land. When an Act authorises a
document to be served by post then properly addressing, pre-paying
and posting the item will be deemed to have completed that service
unless proven to the contrary. Consequently, proof of posting is
proof of service unless proven to the contrary.
The 'proper address' for a corporate body or
partnership is its registered or principal office in the United
Kingdom and for an individual is his last known address. If the
person specifies another address in the United Kingdom at which he
or someone else will accept documents then that will be his proper
address.
18.3 Monthly
Instalments, agreed arrangements and payment
methods
The regulations state that unless an alternative
agreed arrangement is in place a demand notice is assumed to be
payable in monthly instalments. When issued before the end of April
the number of instalments will be ten, when issued between May and
December the number will be one less than the number of whole
months remaining in the year, taking the year to be April to March,
and when issued between January and March payable in a single
instalment.
The demand notice must specify the months in
which the instalments are payable and the date in each month an
instalment is payable. The demand notice must be issued at least 14
days prior to the first instalment date. It must also state the
amount of each instalment. If when divided by the number of
instalments the monthly amount would equal a multiple of £1 the
instalments will be for that amount. In all other cases the amount
must be rounded to the nearest £1 with the first instalment
adjusted to balance the total amount due.
Where the total amount due is less than £100 the
demand notice may demand payment in a single instalment. If the
monthly instalment is less than £50 and the total due is greater
than £100 then the demand notice may require monthly instalments of
£50 per month until the total amount due is cleared with the final
amount being adjusted accordingly. It may be possible to agree an
alternative payment arrangement and ratepayers should contact the
business rates section if they are having payment difficulties.
The legislation does not specify any payment
methods that must be offered or accepted. The only reference to
payments is the reference to include a statement with the demand
notice of those methods that are offered by the billing authority.
The payment methods offered will usually include cash, cheque,
banker's order, or direct debit. Cheques should be made payable to
Havant Borough Council. It is also possible to pay by debit card
(Switch, Delta, Solo) over the internet and this can be accessed
through this link to our On line payments page. Please note that if
telephoning to pay by credit card a small handling fee will be
payable.
18.4 Further Notice &
Reminders
Under the regulations it is assumed that unless
there is an agreement to the contrary or the demand notice is
served after the end of December then the business rate will be
payable by monthly instalments. The demand notice specifies the
amount and payment date of each instalment and if an instalment is
not made, or not made in full, then a further
notice is issued to the taxpayer. Where a demand notice has
been issued but there is no entitlement to instalments or the final
instalment date has passed then a reminder
notice is issued.
The fundamental significance of the notices is
that formal recovery and enforcement proceedings may not commence
until one or the other has been issued.
18.5 Further notice
A further notice is served on a ratepayer
who has not paid an instalment by the due date or has not paid the
full amount of the instalment. The notice must state the
instalments to be paid at that time and inform the ratepayer to
bring the instalments up to date within 7 days. The notice will
also state that if the instalments are not brought up to date
within 7 days then the total unpaid balance for the remainder of
the year will become payable in full after a further 7 days.
The notice must also inform the ratepayer that
if he brings the instalments up to date within 7 days but a
subsequent further notice is issued then if he fails to pay the
subsequent instalment the total unpaid balance for the year will
become payable immediately. In short, a maximum of 2 'further
notices' will be issued per year. There is no time limit as to when
the further notice must be issued and a notice may be addressed to
joint occupiers in joint names.
18.6 Reminder Notice
With the exception of where a
further notice has already been issued for the debt,
before a billing authority applies for a liability order it must
serve on the ratepayer a reminder notice. The
notice is to be in addition to any other notice and is to state
every amount the authority is to include in the application. A
reminder notice will typically be issued where a demand notice was
issued after December or after all instalments have become due but
no reminder notices issued. There is no time limit as to when the
notice may be issued and it may be addressed to joint occupiers in
joint names.