Date:  23 March 2009

PAYMENT OF BACKDATED BUSINESS RATES BY INSTALMENTS  

A little something to help your cash flow in these trying times.

As from March 2009 regulations are being introduced which will allow back dated business rates to be paid by instalments where a rating list is altered with retrospective effect. 

The current rating list came into force on the 1 April 2005 and runs for 5 years (subject to changes generally having effect from the date on which the circumstances requiring alteration occurred). This means that where a change is made it could give rise to a demand being issued for rates liability in respect of a financial year that has already ended.

This relates specifically to notice of backdated demand being issued during the financial years beginning 1 April 2007, 1 April 2008 or 1 April 2009 and relating to changes to the rating list made on or before the 31 March 2010. 

Generally rate payers can already pay annual rates by instalments.  However this facility did not exist in the case of backdated amendment to the rating list until now. 

So, as a result of the new regulations, where a rate payer incurs backdated rates liability the billing authority and the rate payer can agree to reschedule that liability so that the instalments are made over a period of up to 8 years. 

Every little helps.

Clive Vernon