Liability Orders
A Liability Order allows further action to be taken against you. This may include , Bailiff action, Bankruptcy, the possible liquidation of your business or your Committal to Prison.
If you do not pay the full amount of your Business Rates the Council will apply to the Magistrates Court for the issue of a Liability Order against you. This covers the full remaining balance with an extra charge of £61.00 summons costs and £14.00 for the Liability Order fee if awarded by the Court.
A Liability Order is a multi purpose legal document that gives the Council the power to enforce, through the various methods below:
- Distrait and sale of goods
- Instigation of insolvency proceedings
- Instigation of committal proceedings
If the Business Rate debt is not paid upon the Council receiving the Liability Order then any of the following actions may be taken against you.
Bailiff action by distress and sale of goods
The Liability Order enables the Council to send a bailiff to visit the debtor and ascertain what goods are available and how the debt can be paid. Ultimately the bailiff may remove goods and auction them, using the money made to pay of the Council Tax or Business Rate debts. There are, however, some restraints on what may be taken.
Insolvency
The Liability Order allows West Somerset Council to bankrupt an individual or liquidate a company.
Committal to Prison
On the Council's application Committal Summonses and Arrest warrants, backed with or without bail will be issued to secure the debtors attendance at the Court. At the subsequent hearing there will be an enquiry into the debtor's means and conduct in not paying charges. Committal suspended or otherwise, may only be imposed if either 'Culpable Neglect' or 'Wilful Refusal' is found by the Magistrates.
This course of action has proven very successful in recent years and the Magistrates have issued many custodial sentences that have been suspended upon payment terms.
Any debtor subject to this action should consider seeking some legal advice prior to attending the Court hearing as a duty solicitor is not always available.
If you are in arrears with your Business Rates and wish to discuss payments or the action being taken against you, please contact us as soon as possible.
Contact Us
Revenues
West Somerset House
Killick Way
Williton
Taunton
Somerset
TA4 4QA
Telephone: 01643 703704
Email: revenues@westsomerset.gov.uk