Changes to the collection of unpaid Council Tax and Business Rates

A change to the law which came into force at the beginning of April has seen enforcement agents replace bailiffs across Stratford-on-Avon District and new 'fixed fees' being introduced.

The new fixed enforcement agent fees apply to householders and businesses in arrears on their council tax or businesses rates and these changes will make the enforcement process much clearer and transparent for everyone involved – making it easier for debtors to understand the consequences of non-compliance of paying their bill.

Residents and businesses will now have to pay a £75 compliance fee as soon as Stratford-on-Avon District Council passes an unpaid account to the enforcement agent to collect.

They will also have to pay a further enforcement fee of £235 plus 7.5 percent of the debt amount (if it is over £1,500) if they do not make arrangements to pay and a visit from an enforcement agent becomes necessary.

A further £110 will have to be paid when the enforcement agent visits the premises to transport goods to be sold.

Changes to regulations means that it will be easier to identify when enforcement can take place; the information and notices that must be provided; the goods that can be subject to enforcement and who can undertake enforcement.

All enforcement agents must be certified (as bailiffs were) in line with the requirements of the Taking Control of Goods (Fee) Regulations 2014.

Dave Webb, Head of Enterprise, Housing and Revenues says: “The new regulations introduces a set of rules which sets out how much enforcement agents can charge and how they should deal with each situation. Whereas before, bailiffs were charging different amounts and some people felt intimidated by them. The new rules will provide more clarity and a consistent approach.

“The three main areas of concern for these changes being made were: misrepresentation of powers, overcharging and aggressive behaviour. These issues have been addressed and debtors now know in advance what fees will need to be paid if their debt is passed on to an enforcement agent.

“The District Council will continue to offer as much support and advice as possible to residents and businesses who have difficulty paying their council tax and business rates to ensure that it doesn't get to the enforcement stage. It saves everyone a lot of time and money if people pay their bills on time or if they let us know that they are unable to pay their bill. If you are worried about not being able to pay your bill or would like some advice, don't hesitate to get in touch with us.

“The advice is: Don't ignore your debt and risk being charged extra costs. Contact the District Council for help with your debt before it is too late and passed to enforcement agents. Once your debt is with them, it is the enforcement agents you have to contact about the debt - not the District Council."

If you are struggling to pay your bill and would like some advice please contact Stratford District Council on 01789 260990 for Council Tax or 01789 260993 for Business Rates.

In 2013/14 there were 2,195 Council Tax cases and 290 Business Rates cases passed to Bristow and Sutor bailiffs.

The process of collect council tax and business rates:

1. Send out a bill

2. Send a reminder letter if payment isn't received in accordance with instalments

3. Send a second reminder (if account brought up to date following first reminder and customers misses a payment again). A second reminder isn't given for business rates

4. Send a final notice demanding payment of the full balance if there is a further default

5. Summons issued incurring £85.00 costs (if account isn't brought up-to-date following first/second reminder or final notice)

6. Liability Order obtained by the District Council at Magistrates Court

7. Letter sent out giving 14 days for debtor to make contact to arrange payment or case will be passed to the enforcement agent

8. If the debt isn't paid or any arrangement made within 14 days on day 15 they will be charged the £75 compliance fee for the enforcement agent