Business Rates Magistrates' Court - Manchester City Council

[excite-english]

I have been summonsed to appear before Manchester Magistrates' Court for non payment of Non-Domestic rates to Manchester City Council (MCC).

It is my defence that I am not liable to pay these rates as I am exempt from paying as I qualify for 100% small business rates relief and which had been confirmed by the council in a letter in August 2012.

A brief background
1. New occupancy of a property in Manchester in Feb 2012. I wrote to the council within 4 days to inform of new occupancy, submitting all necessary documents.
2. MCC's failure to provide me with a suitable and accurate bill resulted in me initiating a formal internal complaint and over the course of 6 months, I received two visits from the valuations office (VO) to correctly value the premises. My complaint resulted in a stage 1 resolution including an apology from the business rates manager and confirmation from him that I was entitled to 100% small business rates relief.
3. Submission of the rates relief form meant I was issued with a final bill for £0 business rates liability.
4. In late autumn 2012 I began to receive more demands for business rates payments, despite responding and highlighting my reference to my small business relief.
5. Since the bills have started coming again, I have opened another internal complaint to understand why I am receiving more back-dated bills. I requested that my account be put on hold during this period, this was agreed to by the council in an email.
6. I was not happy with the outcome of the new complaint stage 1 and the council continued to send me bills and red letter demands.
7. With my complaint outstanding and about to enter stage 3 of the council complaints procedure, I have today received a summons for court over unpaid rates (despite them promising that my account was on hold).

What options do I have available? Thanks

[labman]

Re: Business Rates Magistrates' Court - Manchester City Council

I have been summonsed to appear before Manchester Magistrates' Court for non payment of Non-Domestic rates to Manchester City Council (MCC).

It is my defence that I am not liable to pay these rates as I am exempt from paying as I qualify for 100% small business rates relief and which had been confirmed by the council in a letter in August 2012.

A brief background
1. New occupancy of a property in Manchester in Feb 2012. I wrote to the council within 4 days to inform of new occupancy, submitting all necessary documents.
2. MCC's failure to provide me with a suitable and accurate bill resulted in me initiating a formal internal complaint and over the course of 6 months, I received two visits from the valuations office (VO) to correctly value the premises. My complaint resulted in a stage 1 resolution including an apology from the business rates manager and confirmation from him that I was entitled to 100% small business rates relief.
3. Submission of the rates relief form meant I was issued with a final bill for £0 business rates liability.
4. In late autumn 2012 I began to receive more demands for business rates payments, despite responding and highlighting my reference to my small business relief.
5. Since the bills have started coming again, I have opened another internal complaint to understand why I am receiving more back-dated bills. I requested that my account be put on hold during this period, this was agreed to by the council in an email.
6. I was not happy with the outcome of the new complaint stage 1 and the council continued to send me bills and red letter demands.
7. With my complaint outstanding and about to enter stage 3 of the council complaints procedure, I have today received a summons for court over unpaid rates (despite them promising that my account was on hold).

What options do I have available? Thanks

I'm sorry, but I'm not well versed in NNDRs, except they tend to be very similar to Council Tax. There is a link to legislation I believe on the bailiff tab at the top of the page.

What confuses me here is the relief element. I simply don't understand on what grounds they think they can issue a LO against you for non payment when you have this paperwork to back you up.

[excite-english]

Re: Business Rates Magistrates' Court - Manchester City Council

Yes, exactly my sentiment. Thanks for the link, i'll take a look.

I have written to them today, copying the CEO's office. I have asked them to seriously reconsider their legal action against me in light of the fact that 1. I have supporting documents (tried to attach to this thread but says the server is down) and 2. I still have an open complaint investigating my case internally.

[labman]

Re: Business Rates Magistrates' Court - Manchester City Council

It's difficult to see what more you can do at this case except prepare your defence just in case. You MUST defend and turn up in person (with solicitor if possible).

[seduraed]

Re: Business Rates Magistrates' Court - Manchester City Council

my guess is that as you do not pay NNDR the accounts program is showing the amount recieved as zero. Somebody at teh council has simply run a mass liability order for all accounts where the amount recievecd is zero. There is probabally a switch on the software to remove you from liability if you get full relief.

[bustasymes]

Re: Business Rates Magistrates' Court - Manchester City Council

Just a few points to note:
1. Did your letter confirming entitlement to full SBRR state the same account reference or property number and if so did the LA send you a further notice to show that this had been removed.
2. SBRR is only applicable to occupied premises. Have you requested any empty exemption during the period? Empty rates are in most cases now the same rate as occupied rate, but you would not be entitled to SBRR on any empty charges.
3. Do you occupy any other business properties in England? This could be a split of the existing assessment which you consider to be one property (eg an office, with a store or car space separately assessed by the VOA). If so, you will only get the relief on the main property if the others have a RV less than £2600.
In my experience, LA's have always been keen to promote SBRR and would only revoke it if there has been a material change in circumstances, new property, increase in RV etc.
Rather than instigating formal complaint proceedings, a simple call to ask the revenues manager the specific reasons why SBRR is not showing on your account resulting in a summons to court would normally suffice. Since you ahve alreasy had dealings with the senior manager, I am sure the reasons could be established.
Good luck either way.

[wales01man]

Re: Business Rates Magistrates' Court - Manchester City Council

I have to agree with the above poster saying phone them ask the question if its their mistake it should be easy to recitify if they are right you have more time to sort it out

[excite-english]

Re: Business Rates Magistrates' Court - Manchester City Council

Just a few points to note:
1. Did your letter confirming entitlement to full SBRR state the same account reference or property number and if so did the LA send you a further notice to show that this had been remove. Personally, I also think it's a mix up with reference numbers (despite the address always being correct) and i've attached all bills with reference numbers when I've written to them. It's not for me to point out their mistakes at this stage.
2. SBRR is only applicable to occupied premises. Have you requested any empty exemption during the period? Empty rates are in most cases now the same rate as occupied rate, but you would not be entitled to SBRR on any empty charges.Not applicable
3. Do you occupy any other business properties in England? This could be a split of the existing assessment which you consider to be one property (eg an office, with a store or car space separately assessed by the VOA). If so, you will only get the relief on the main property if the others have a RV less than £2600 no
In my experience, LA's have always been keen to promote SBRR and would only revoke it if there has been a material change in circumstances, new property, increase in RV etc.
Rather than instigating formal complaint proceedings, a simple call to ask the revenues manager the specific reasons why SBRR is not showing on your account resulting in a summons to court would normally suffice. Since you ahve alreasy had dealings with the senior manager, I am sure the reasons could be established.I totally agree that a phone call would be a suitable recourse. Unfortunately the council have demonstrated utter unprofessionalism for the way they have handled my case. The senior business manager as well as the complaint investigators have also shown that they are not capable of investigating things thoroughly and in enough detail. It seems obvious, as you have suggested, that there is probably some mix up with reference numbers etc. At one stage in spring 2012, I would have gone out of my way to try and clear things up over the telephone. However, since it has dragged on so long (since Feb 2012) and taken up so much of my time, I have felt it only right to make formal complaints. It's a real shame, I think it's important to give people a fair chance. What I don't think is fair is to waste so much taxpayers money trying to solve a problem which is so easily sorted.
Good luck either way.

Thank you

[excite-english]

Re: Business Rates Magistrates' Court - Manchester City Council

I have written to my business insurance provider to ascertain if my policy covers me for legal counsel in this case.

[excite-english]

Re: Business Rates Magistrates' Court - Manchester City Council

my guess is that as you do not pay NNDR the accounts program is showing the amount recieved as zero. Somebody at teh council has simply run a mass liability order for all accounts where the amount recievecd is zero. There is probabally a switch on the software to remove you from liability if you get full relief.

I have always held this view, too. However, I am not an expert in their systems, I can only tell them where I occupy. Sometimes people have to learn the hard way to find the errors of their ways and flaws in their systems. Budget and council cuts are probably not helping in terms of staffing numbers and being able to cope with resolving trivial problems like mine. It's a pity that the upstanding, tax-paying people have to bear the brunt of this chaos - not least having the stress of being summonsed.

[bustasymes]

Re: Business Rates Magistrates' Court - Manchester City Council

I have always held this view, too. However, I am not an expert in their systems, I can only tell them where I occupy. Sometimes people have to learn the hard way to find the errors of their ways and flaws in their systems. Budget and council cuts are probably not helping in terms of staffing numbers and being able to cope with resolving trivial problems like mine. It's a pity that the upstanding, tax-paying people have to bear the brunt of this chaos - not least having the stress of being summonsed.

LA revenues systems would be looking at the balance on the account, not whether there has not been a payment on account. The balance you would have been summonsed for results from the fact that SBRR has not been applied.
It does sound to me like a referencing matter and perhaps there had been some changes in asssessment or valuation (split/merge/reorganisation etc) which may have prompted the old relief to be on a "null" account and not to be replicated across to the new account or property details. This is easily done since business properties are subject to more changes than their domestic counterparts. But I hasten to add that this is also very easily rectified.
If the details of what you have posted are correct and the property is in the rateable value limits for Small Business Relief ie <= RV £6000 then 100% relief, then on a sliding scale from 100% down to 0% relief for RV between £6,001 to £12,000, there are no further premises occupied, you are not subject to any mandatory charitable relief and it is occupied, then I am at a loss to understand why this cannot be resolved simply. If your RV is between £12,001 and £18,000 you will not be entitled to relief but will pay the slightly lower small business multiplier.
If you have what you say you have as far as evidence of entitlement and all the referencing is in order, then you would be in your rights to have this heard, although from experience an adjournemnt is more likely for the matter to be resolved between you and the LA.
Keep us updated on progress.

[excite-english]

Re: Business Rates Magistrates' Court - Manchester City Council

Thanks @bustasymes - I'll keep you informed. It's a shame the attachment system on legalbeagles is not working.
My rateable value was confirmed to be under £6000, hence my qualification for SBRR, resulting in my submission of the forms requested by the council, leading to a bill of £0 in summer 2012. I have all the documents with council admission of the above, as well as all historic bills and correspondence.
A couple of questions, please:
1. Do I have an option to refuse speaking to the council member at the magistrates' court and request to speak in front of magistrates' directly?
2. Will I still have to pay costs if a future ruling is in my favour?
3. Am I able to claim costs/compensation against the council given that I have spent hours and hours trying to resolve this over the past 14 months?

Thank you

[labman]

Re: Business Rates Magistrates' Court - Manchester City Council

It's a shame the attachment system on legalbeagles is not working.

Just to check, you have gone to advance options, browsed, uploaded. When the upload disappears from the box, you can't see the attachment on your post draft, but it is there when you submit the post.

Worth checking!:beagle:

[excite-english]

Re: Business Rates Magistrates' Court - Manchester City Council

I'm trying a different method. Sorry if it's very large

[labman]

Re: Business Rates Magistrates' Court - Manchester City Council

Assuming you completed and returned the form, it is very hard to see how they can get this money.