How not Managing Business Rates Properly can have a Negative Effect on your Organisation
Business rates are the taxes levied on the owners of commercial property and making sure that they’re managed properly is imperative to making sure your business runs smoothly. Without managing business rates properly, there can be many negative effects on your business, including a possible court summons and receiving a notice of a liability order. Here’s why you should manage your business rates to avoid them having a negative effect on your business:
1) Ruin your Cash Flow
Managing your business rates successfully can be a challenge, especially if you own several commercial properties. From a business perspective, paying your business rates on time and in full each time they’re due is important to make sure you don’t have cash flow problems later down the line. The business rates are due to be paid monthly to your local council and if not received, the council will take action and start a recovery process.
2) Fines and Court Summons
The very worst impact that not managing your business rates properly can have on your business is that you’ll need to attend a court hearing and pay a fine. This is not only stressful for your business it also puts you in a bad light in the public eye and makes potential customers and clients question your ability as a business. The first time you miss a payment you’ll receive a first reminder, followed by a second reminder, then a final notice and a court summons with a liability order then requested from the courts.
3) Liability Order
It’s vital to take the first reminder you receive seriously as once you fail to pay within the given period, you’ll then be charged the full amount for the year eventually. If you get to the stage where you fail to pay the final notice, the right to pay your business rates by instalment is lost and you’ll have to pay it all up front. A liability order is issued at magistrates which grants the council additional ways to collect the outstanding payments which can include using bailiff to seize goods.
All the above actions can be very damaging to your businesses’ reputation and can lead to humiliation and cash flow problems further down the line. By using a company like Allsop to manage your business rates, there’s no chance of slipping behind. Although business rates can seem insignificant, by forgetting to pay them you’ll see huge negative effects so being organised and managing them correctly as a business is essential.