Business rates can be payable in monthly instalments with the aggregate amount spread over the months remaining in the rating year.
A rating year runs from 1st April – 31st March and new bills are usually issued to ratepayers in the March prior to the new rating list starting.
A business rates bill issued for the new rating year will break down the rates payable into 10 consecutive monthly instalments.
From the 1st April 2014 regulations were changed to allow for 12 monthly instalments if this was applied for before the 15th April of that rating year. If the demand notice is issued after the 15th April the number of instalments will be the number of full months remaining.
Once a business has applied for monthly instalments they do not need to reapply each year as the billing authority will carry on the agreement unless stipulated by the business to change the agreement.
If a demand notice is issued in May, the number of instalments will be 10 or the number of whole months left minus one.
Where the demand notice is issued between 1st January and 31st March in the relevant year the whole amount is due in a single instalment on the day specified on the demand notice.
The months that instalments are payable must be uninterrupted and are to be paid on the date specified on the demand notice.
Should you fall behind on your monthly payments and lose your monthly payment entitlement it is always worth calling the council to arrange payment and asking if monthly payments can be reinstalled – often this will be allowed.