Expenses and benefits: loans provided to employees

Overview

As an employer providing loans to your employees or their relatives, you have certain National Insurance and reporting obligations.

What’s included

There are different rules for:

providing ‘beneficial loans’, which are interest-free, or at a rate below HMRC’s official interest rate

providing loans you write off

charging a director’s personal bills to their loan account within the company

Beneficial loans

The rules cover beneficial loans advanced, arranged, facilitated, guaranteed or taken over from someone else by:

you (the employer)

a company or partnership you control

a company or partnership that controls your business

a person with a material interest in your business

See the technical guidance for what to do in more complicated situations, eg if you use third-party arrangements to make a loan to your employee.

What's exempt

You might not have to report anything to HMRC or pay tax and National Insurance on some types of beneficial loans.

This includes loans you provide:

in the normal course of a domestic or family relationship as an individual (not as a company you control, even if you are the sole owner and employee)

with a combined outstanding value to an employee of less than £10,000 throughout the whole tax year (£5,000 for 2013 to 2014)

to an employee for a fixed and invariable period, and at a fixed and invariable rate that was equal to or higher than HMRC’s official interest rate when the loan was taken out

under identical terms and conditions to the general public as well (this mostly applies to commercial lenders)

that are ‘qualifying loans’, meaning all of the interest qualifies for tax relief - see the technical guidance for an explanation of this complex area

using a director’s loan account as long as it’s not overdrawn at any time during the tax year

Salary sacrifice arrangements

You do have to report loans to your employees or their relatives if they’re made as part of a salary sacrifice arrangement.

What to report and pay

If the loans you provide aren’t exempt, you have to report the costs to HMRC, and deduct or pay National Insurance on them.

Beneficial loans

If you or your business provides a beneficial loan, as defined in the overview, you’ll need to:

report it on form P11D

pay Class 1A National Insurance on the value of the benefit

Loans you write off

You always have to report and pay on loans to employees that you write off, whether or not they are classed as beneficial loans.

You must:

report it on form P11D

deduct and pay Class 1 National Insurance (but not PAYE tax) on the value of the benefit

Work out the value

You can work out the value of loans using HMRC’s PAYE Online or commercial payroll software.

You can also work out the value manually on P11D working sheet 4.

Salary sacrifice arrangements

If the cost of the loan is less than the amount of salary given up, report the salary amount instead.

These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.

Technical guidance

The following guides contain more detailed information:

beneficial loans: contents page

Class 1 National Insurance: loans written off

loans released or written off

making a loan: loan made by third party

contrasting treatment where some or part of the interest would qualify for relief

director’s loan accounts: overview

director’s loan accounts: whether withdrawals are loans or earnings

beneficial loan arrangements (chapter 17 of ‘Expenses and benefits: a tax guide’)


PAYE Settlement Agreements

Overview

A PAYE Settlement Agreement (PSA) allows you to make one annual payment to cover all the tax and National Insurance due on minor, irregular or impracticable expenses or benefits for your employees.

If you get a PSA for these items you will not need to:

put them through your payroll to work out tax and National Insurance

include them in your end-of-year P11D forms

pay Class 1A National Insurance on them at the end of the tax year (you pay Class 1B National Insurance as part of your PSA instead)

Some employee expenses are covered by exemptions (which have replaced dispensations). This means you will not have to include them in your end-of-year reports.

What's included

The expenses or benefits you include in a PAYE Settlement Agreement (PSA) must be minor, irregular or impracticable.

Minor

Examples of minor benefits and expenses include:

incentive awards, for example for long-service

telephone bills

small gifts and vouchers

staff entertainment, for example a ticket to an event

non-business expenses while travelling overnight on business that are over the daily limit

You do not need to include trivial benefits in your PSA.

Irregular

Irregular benefits and expenses are things that are not paid at regular intervals over the course of a tax year, for example weekly or monthly. They’re also things that employees do not have a contractual right to. Examples of irregular expenses and benefits include:

relocation expenses over £8,000 (these are tax-free below £8,000)

the cost of attending overseas conferences

expenses of a spouse accompanying an employee abroad

use of a company holiday flat

Impracticable

Impracticable expenses and benefits are things that are difficult to place a value on or divide up between individual employees. Examples of impracticable expenses and benefits include:

staff entertainment that is not exempt from tax or National Insurance Contributions

shared cars

personal care expenses, for example hairdressing

What’s not included

You cannot include wages, high-value benefits like company cars, or cash payments such as:

bonuses

round sum allowances

beneficial loans in a PSA

If you apply after the start of the tax year, there are extra restrictions on what you can include.

How to get a PSA

Write to HM Revenue and Customs (HMRC) Business Tax and Customs describing the expenses and benefits you want the PAYE Settlement Agreement (PSA) to cover.

Once they’ve agreed on what can be included, they’ll send you 2 draft copies of form P626. Sign and return both copies. HMRC will authorise your request and send back a form - this is your PSA.

You’ll need to report anything that cannot be included separately using form P11D. You do not need to send a P11D if you’re paying employees’ expenses and benefits through your payroll.

Use form PSA1 to help you calculate the overall amount you’ll need to pay. If you do not, HMRC will calculate the amount. You’ll be charged more if this happens.

Send the completed form to HMRC as soon as possible after the end of the tax year. They’ll get in touch with you before 19 October following the tax year that the PSA covers to confirm the total tax and National Insurance you need to pay.

You’ll need to give an agent a signed letter of authority to make a PSA on your behalf if they do not have authorisation to do so.

Contact the HMRC employer helpline for advice on getting and calculating your PSA.

What happens next

The agreement will continue until either you or HMRC cancels it or you need to change it. You do not need to renew the PSA each tax year.

Deadlines and payment

The deadline for applying for a PAYE Settlement Agreement (PSA) is 5 July following the first tax year it applies to.

When to pay

You must pay any tax and National Insurance owed under a PSA by 22 October after the tax year the PSA applies to (19 October if you pay by post).

You may be fined or charged interest if you do not pay or your payment is late.

What to pay when the PSA is first approved

If HM Revenue and Customs (HMRC) approves your PSA before the start of a tax year, you can include any expenses and benefits contained in the agreement.

If they approve it after the start of the tax year, you might need to report some items separately.

If your PSA is approved before 6 April

You must use form P11D to report expenses and benefits provided before the agreement date that you:

have already included in your employee’s tax code

included (or should have included) in your employee’s PAYE tax and National Insurance deductions

If your PSA is approved between 6 April and 5 July

You must use form P11D to report expenses and benefits provided during the tax year that you:

Change or cancel a PSA

To change the items covered by your PAYE Settlement Agreement (PSA), send details of the changes to the office that issued it. HM Revenue and Customs (HMRC) will send you a revised P626 that you need to sign and return.

Cancel a PSA

To cancel your PSA, fill in the return slip section of the P626 and send it to HMRC.

HMRC will cancel your PSA on the date you put on the return slip.

You need to report any outstanding tax and National Insurance Contributions (NICs) due on benefits and expenses using forms P11D and PSA1.

You need to pay any outstanding tax and NICs by 22 October after the tax year the PSA applies to (19 October if you pay by post).

You need to pay any NICs owed on expenses or benefits listed on the P11D form by 22 July after the tax year it applies to (19 July if you pay by post).

If you continue providing benefits after you’ve cancelled your PSA, you need to either:

report them on a P11D form

put them through payroll

You can pay any tax or NICs due via PAYE.


Claiming money or property from a dissolved company

Overview

When a company is dissolved, all of its assets pass to the Crown and are legally known as ‘bona vacantia’ (ownerless property). Assets include:

property and land

mortgages

shares

intellectual property, for example trademarks, registered designs and patents

Claiming or buying assets

You may be able to claim money back or buy assets from the dissolved company by:

getting a court order to restore the company - if they owe you money

buying or claiming some of their assets - if you’re affected by the company closing

applying for a discretionary grant - if you were a shareholder

You can get legal advice about the best way to claim back your money.

Get a court order to restore a company

You may be able to apply for a court order to restore a company if:

you did business with them

you worked for them

they owed you money when they were dissolved

you’re responsible for their employee pension fund

you have a shared or competing interest in land

you were a shareholder or director when it was dissolved

You may be able to restore the company without a court order if you were a director or shareholder of a dissolved company.

How to apply

Download and fill in a claim to restore by court order (form N208) to apply for court order restoration in England and Wales.

HM Courts and Tribunals service has guidance notes on filling in form N208 if you need help.

Find the company’s registered office and send your completed form to their nearest county court that deals with bankruptcy.

If you’re not sure where to send the form then contact the Royal Courts of Justice.

You’ll also need to include:

the £280 court fee (cash, postal order or cheque made payable to ‘Her Majesty’s Courts and Tribunals Service’)

a witness statement, containing the supporting information outlined in section 4 of the Treasury Solicitor’s guide to company restoration

In Scotland

Apply to the Court of Session if the initial value of the company’s shares that have been paid for (‘paid-up capital’) is more than £120,000.

Apply to the local sheriff court for other companies.

You’ll then have to serve a ‘petition to restore’ on the Registrar of Companies in Scotland, and any other bodies the court asks you to.

In Northern Ireland

Apply by serving an ‘originating summons’ on the Royal Courts of Justice:

You also need to send this to the Registrar of Companies in Northern Ireland, along with a witness statement in support of the application.

What happens next

If your claim is accepted, the court will issue an order to restore a company - you’ll be sent this, and you must send it on to the Registrar of Companies. Once they have it they will restore the company.

You’ll then need to take further action to try and get your money:

get a ‘judgment’ from court for the amount of the money you’re owed together with interest and costs

issue a statutory demand

take out a winding up petition

Buy a dissolved company's assets

You may be able to claim or buy an asset belonging to a dissolved company by asking the body representing the Crown. This is known as ‘referring’ an asset.

Who you ask depends on where the company was registered.

Anybody can refer an asset, for example if:

you’re the leaseholder of a property where the company owned the freehold

you want to buy or are affected by land owned by the company

you want to buy other assets of the company like shares, trade marks or copyrights

you’re a shareholder trying to get cash held by the company

How to refer an asset

The Treasury Solicitor looks after dissolved company assets in England and Wales (but not Cornwall or Lancashire).

Find out how to refer an asset to the Treasury Solicitor.

You can also write to:

Other bodies that represent the Crown

Elsewhere, dissolved companies’ assets are dealt with by:

in Cornwall and Lancashire - Farrer and Co

in Scotland - The Queen’s and Lord Treasurer’s Remembrancer

in Northern Ireland - phone or write to the Crown Solicitor’s Office for Northern Ireland

Apply for a discretionary grant

You may be able to get back a dissolved company’s assets if you were one of its shareholders.

How to apply

In England and Wales (but not Cornwall or Lancashire) you must apply to the Treasury Solicitor.

How you apply depends on whether the company can be restored or not.

The Treasury Solicitor has guidance on what you should do if:

the company can be restored

the company cannot be restored

Companies in Scotland, Northern Ireland, Cornwall and Lancashire

Property owned by dissolved companies is dealt with:

in Northern Ireland - the Crown Solicitor’s Office for Northern Ireland


County court judgments for debt

Overview

You may get a county court judgment (CCJ) or high court judgment if someone takes court action against you (saying you owe them money) and you do not respond.

You must respond to the court claim by the date on the email or letter you receive.

If you get a judgment, this means that the court has formally decided that you owe the money.

The judgment will come in the post and will explain:

how much you owe

how to pay (in full or in instalments)

the deadline for paying

who to pay

Records of judgments are kept for 6 years unless you pay the full amount within a month - this can make it hard to get credit.

What you can do if you get a judgment

If you do owe the money, you’ll need to pay it back. If you cannot afford to, you can ask to:

change the terms of (‘vary’) the judgment

pay it back in instalments

Find out what options you have for paying the judgment.

You can apply for the judgment to be cancelled (or ‘set aside’) if:

you do not owe the money

Find out how to apply for the judgment to be cancelled.

If you get a judgment, do not ignore it - you could be taken back to court and forced to pay.

Court judgments for debt in Scotland

The law is different in Scotland - read guidance from the Accountant in Bankruptcy (Scotland’s insolvency service).

Pay the judgment - if you do owe the money

You’ll have to pay the person or business you owe the money to, or their solicitor. The name and address will be on the judgment form. Do not pay the court.

Make sure you can prove you’ve paid. Send a cheque or postal order by post, or make a bank transfer. Do not send cash through the post.

Keep a record of your payments and make sure you pay in time.

Pay in instalments

If you’re paying in instalments, ask the person or business you owe the money to about the best way to pay.

You may want to set up a standing order to pay the money directly from your bank account.

If you’re late with your payments, you could be taken back to court and you may have to pay extra costs.

Ask to change the payments

You can ask to change the terms of the judgment - for example, how and when you pay.

To do this, fill in the N245 application form.

Give details of your income and spending, and say how much you can realistically afford to pay.

You may have to pay a court fee.

If your offer is rejected, the court will decide on the amount you have to pay.

If you do not pay what the court has ordered

If you do not pay as ordered, the person or business you owe money to may:

threaten you with bailiffs to collect the money

ask the court to take action against you to force you to pay

If you’re threatened with bailiffs

The person or business you owe money to may use bailiffs to collect the money.

They’ll have to apply to the court for a ‘warrant’, which will give the bailiff the right to visit your home or property. You’ll be given 7 days to pay before they visit.

You may be able to stop the bailiff from visiting, by filling in the N245 application form.

Say on the form how you’ll repay the money - for example weekly or monthly payments. If your offer is accepted, the warrant will be stopped as long as you keep up with the payments.

Actions the court can take against you to force you to pay

The court may decide to:

order a deduction from your earnings

freeze money in your bank or building society account

deduct the money you owe when you sell your property (such as a house, land, stocks or shares)

order you to come to court to answer questions about things like your earnings or employment status

If you have other judgments or debts

If you have another judgment against you, you can arrange to pay all your debts to the court in a single weekly or monthly payment.

This will stop people taking action against you to get their money - for example by sending bailiffs to your home.

You can only do this if your total debts are under £5,000.

You’ll need to fill in the application for an administration order (N92).

Contact the court if you cannot keep up with the payments.

Cancel the judgment

If you do not owe the money, you can ask the court to cancel the county court judgment (CCJ) or high court judgment. This is known as getting the judgment ‘set aside’.

You can also do this if you did not receive, or did not respond to, the original claim from the court saying you owed the money.

Apply to get the judgment set aside

To get a judgment set aside, fill in the application notice (N244) and send it to the court.

You may have to pay a court fee of £255.

You’ll have to go to a private hearing at the court to explain why you do not owe the money.

If you do not go to the hearing, your application will be rejected and you’ll have to pay the amount in the judgment.

CCJs and your credit rating

If you get a county court judgment (CCJ) or a high court judgment, it will stay on the Register of Judgments, Orders and Fines for 6 years.

Banks and loan companies use this information to decide whether to give you credit or loans.

If you pay within one month

If you pay the full amount within one month, you can get the judgment removed from the register.

Write to the court to say you’ve paid. You’ll need to send proof of payment from the person or business you owed money to.

If you pay after one month

If you pay after one month, you can get the record of the judgment marked as ‘satisfied’ in the register.

It will stay on the register for 6 years but people searching the register will see that you’ve paid.

Getting a certificate of cancellation or satisfaction

If you want proof from the court that you’ve paid, you can apply for:

a certificate of cancellation - if you paid within one month

a certificate of satisfaction - if you paid after one month

Apply for the certificate in writing or by sending form N443 to the court that is dealing with your case.

You’ll need to include a cheque for £14 - make it payable to ‘HMCTS’.
If you want to pay by card, contact the court that’s handling your case.

If you cannot get proof of payment

If you cannot get proof from the person or business you owed money to, you can still apply for a certificate of cancellation or satisfaction using form N443.

You’ll need to send evidence to the court showing you made the payment, for example a bank statement. If you do not have evidence, explain this on the form.

The court will write to the person or business you owed money to. If they do not respond within 30 days, the court will use your evidence to make a decision.

Search the register of judgments

You can search for details of any judgments against you on the register of judgments.

You’ll have to pay a small fee - each search costs between £6 and £10.

If the information on the register is wrong, contact Trust Online, who will check the details with the court:


Late commercial payments: charging interest and debt recovery

When a payment becomes late

You can claim interest and debt recovery costs if another business is late paying for goods or a service.

If you agree a payment date, it must usually be within 30 days for public authorities or 60 days for business transactions.

You can agree a longer period than 60 days for business transactions - but it must be fair to both businesses.

If you do not agree a payment date, the law says the payment is late 30 days after either:

the customer gets the invoice

you deliver the goods or provide the service (if this is later)

Interest on late commercial payments

The interest you can charge if another business is late paying for goods or a service is ‘statutory interest’ - this is 8% plus the Bank of England base rate for business to business transactions. You cannot claim statutory interest if there’s a different rate of interest in a contract.

You cannot use a lower interest rate if you have a contract with public authorities.

Check the current Bank of England base rate and previous rates.

Send a new invoice if you decide to add interest to the money you’re owed.

Claim debt recovery costs on late payments

You can also charge a business a fixed sum for the cost of recovering a late commercial payment on top of claiming interest from it.

The amount you’re allowed to charge depends on the amount of debt. You can only charge the business once for each payment.

Amount of debt | What you can charge

Up to £999.99 | £40

£1,000 to £9,999.99 | £70

£10,000 or more | £100

These amounts are set by late payment legislation.

If you’re a supplier, you can also claim for reasonable costs each time you try to recover the debt.

Read more on recovering debt.


Liquidate your limited company

Overview

You can choose to liquidate your limited company (also called ‘winding up’ a company).

The company will stop doing business and employing people. The company will not exist once it’s been removed (‘struck off’) from the companies register at Companies House.

When you liquidate a company, its assets are used to pay off its debts. Any money left goes to shareholders. You’ll need a validation order to access your company bank account.

If that money has not been shared between the shareholders by the time the company is removed from the register, it will go to the state.

You’ll need to restore your company to claim back money after it’s been removed from the register.

There are 3 types of liquidation:

creditors’ voluntary liquidation - your company cannot pay its debts and you involve your creditors when you liquidate it

compulsory liquidation - your company cannot pay its debts and you apply to the courts to liquidate it

members’ voluntary liquidation - your company can pay its debts but you want to close it

Your company may be forced into liquidation if it cannot pay its debts.

Arrange liquidation with your creditors

A director can propose a company stops trading and be liquidated (‘wound up’) if:

the company cannot pay its debts (it’s ‘insolvent’)

enough shareholders agree

Get shareholders’ agreement

You must call a meeting of shareholders and ask them to vote.

75% (by value of shares) of shareholders must agree to the winding-up to pass a ‘winding-up resolution’.

Once the resolution is made there are 3 steps you must follow.

Appoint an authorised insolvency practitioner as liquidator to take charge of liquidating the company. You can find an insolvency practitioner online.

Send the resolution to Companies House within 15 days.

Advertise the resolution in The Gazette within 14 days.

Your responsibilities as a director will change.

Apply directly to the court

A director can ask a court to order the company to stop trading and be liquidated (‘wound up’).

This is known as ‘compulsory liquidation’.

You need to show the court that:

the company cannot pay its debts of £750 or more

75% (by value of shares) of shareholders agree that the court can wind up the company

Your company can be based anywhere but must carry out most of its business in England, Scotland and Wales.

How to apply

Fill in a ‘winding-up petition’ (form Comp 1) and send it to the court with:

form Comp 2 confirming the details of your petition

the winding-up resolution from the shareholders

Where you send the petition depends on how much ‘paid-up share capital’ your company has. You can find this on the Companies House register.

Your paid-up share capital is £120,000 or more

Submit the petition online. It’ll go to the High Court.

Your paid-up share capital is under £120,000

Find your nearest court that deals with bankruptcy.

Submit the petition online if it’s one of these courts:

Admiralty and Commercial Court

Chancery Division

Companies Court

High Court (including Bankruptcy Court)

London Mercantile Court

Rolls Building

If it was another court you’ll need to submit the petition by post.

Fees

It costs:

£1,600 to submit the petition

£280 for the court hearing

After you apply

You’ll get a date for the hearing if the court accepts your petition.

Before the court hearing, you must:

give (‘serve’) a copy of the petition to your company - fill in a certificate of service to let the court know you’ve done this

put an advert in The Gazette at least 7 days before the hearing

send a copy of the advert and the certificate of service to the court

The court hearing

You or your solicitor must be at the court hearing. You do not have to give any evidence.

If the court gives a winding-up order, the court will put an official receiver in charge of the liquidation. They’ll start liquidating your company. A copy of the winding-up order will be sent to your company’s registered office.

Your role as a director will change.

Liquidate a company you do not want to run anymore

You may choose members’ voluntary liquidation if your company is ‘solvent’ (can pay its debts) and one of the following applies:

you want to retire

you want to step down from the family business and nobody else wants to run it

you do not want to run the business any more

To pass a resolution for members’ voluntary liquidation, you must:

make a ‘Declaration of solvency’ - English and Welsh companies

ask the Accountant in Bankruptcy for form 4.25 (Scot) - Scottish companies

You’ll need to review the company’s assets and liabilities just before making the declaration.

Make a declaration of solvency

Write a statement saying that the directors have assessed the company and believe it can pay its debts, with interest at the official rate. You should also include:

the name and address of the company

the names and addresses of the company’s directors

how long it will take the company to pay its debts - this must be no longer than 12 months from when the company’s liquidated

You also need to include the statement of the company’s assets and liabilities.

After you’ve signed the declaration or form

There are 5 further steps to members’ voluntary liquidation.

Sign the declaration or form 4.25 (Scot) - it must be signed by the majority of directors in front of a solicitor or ‘notary public’.

Call a general meeting with shareholders no more than 5 weeks later and pass a resolution for voluntary winding up.

At the meeting appoint an authorised insolvency practitioner as a liquidator who will take charge of winding up the company. You can find an insolvency practitioner online.

Advertise the resolution in The Gazette within 14 days.

Send your signed declaration to Companies House or form 4.25 (Scot) to the Accountant in Bankruptcy (for Scottish companies) within 15 days of passing the resolution.

When the liquidator is appointed they take control of the company. Your responsibilities as a director will change.

What the liquidator does

The liquidator is an authorised insolvency practitioner or official receiver who runs the liquidation process.

As soon as the liquidator is appointed, they’ll take control of the business.

They will:

settle any legal disputes or outstanding contracts

sell off the company’s assets and use any money to pay creditors

meet deadlines for paperwork and keep authorities informed

pay liquidation costs and the final VAT bill

keep creditors informed and involve them in decisions where necessary

make payments to creditors

interview the directors and report on what went wrong in the business

get the company removed from the companies register

In a creditors’ voluntary liquidation, the liquidator acts in the interest of the creditors not the directors.

What happens to directors

When a liquidator is appointed, directors:

no longer have control of the company or anything it owns

cannot act for or on behalf of the company

If you’re a director you must:

give the liquidator any information about the company they ask for

hand over the company’s assets, records and paperwork

allow the liquidator to interview you, if they ask

You can be banned from being a director for 2 to 15 years or prosecuted if the liquidator decides your conduct was unfit.

Re-using company names

If you were a director of a company in compulsory liquidation or creditors’ voluntary liquidation, you’ll be banned for 5 years from forming, managing or promoting any business with the same or similar name to your liquidated company. This includes the company’s registered name and any trading names (if it had any).

The only exceptions to this are where:

the business is sold by a licensed insolvency practitioner giving the legally required notice

you get the court’s permission to use the name

you’re involved with another company that’s been using the same name as the liquidated company for at least a year

Read the guidance on re-using company names.

Access to your bank account

Your company’s bank account will be frozen when someone files a petition to wind up the company.

You need a validation order to access it.

How to apply for a validation order

Tell the person who filed the winding-up petition (the respondent) you’re applying for a validation order. You must also tell them what court you’ll apply to (usually the Companies Court) and when you’ll apply.

Fill in Form IAA and write a witness statement. Take the form and the statement to the court.

You need to pay a £155 fee.

What happens after you apply

You’ll be given a hearing on the same day or within the next few days.

At the hearing, you present your case to a registrar or district judge.

The respondent will present their case if they object to you getting a validation order.

At the end of the hearing you’ll either:

get a decision  - you’ll also get a written copy sent to you

be asked to attend another hearing if the court wants more evidence

You’ll be given the validation order if your application is successful. You must give your bank a copy of this to access your company’s bank account.

If you do not agree with the decision you may be able to appeal to the Chancery Division of the High Court.


Make a court claim for money

How to make a claim

You can apply to a county court to claim money you’re owed by a person or business.

This is known as making a court claim. It often used to be known as taking someone to a ‘small claims court’.

A mediation service could be quicker and cheaper than going to court. Mediation is when an impartial person helps both sides work out an agreement.

The process is different in Scotland and Northern Ireland.

Make a claim

Make your claim online if you’re claiming for a fixed (‘specified’) amount of money.

Download and fill in a paper claim form N1 if you’re claiming for an unspecified amount of money.

You can also use the paper claim form to claim for a fixed amount.

Send the paper form to the County Court Money Claims Centre.

You must pay a court fee when you make a claim.

What happens next

You might have to go to a court hearing if the other person or business (the ‘defendant’) denies owing the money and you disagree with their response.

You can get the court to order them to pay if they:

do not respond to your claim

admit they owe you but do not pay

If they still do not pay, you can ask the court to take further steps to collect the money - for example, by using bailiffs.

Court fees

You must pay a court fee when you make your claim.

If you know the claim amount

The court fee is based on the amount you’re claiming, plus interest.

Claim amount | Fees

Up to £300 | £35

£300.01 to £500 | £50

£500.01 to £1,000 | £70

£1,000.01 to £1,500 | £80

£1,500.01 to £3,000 | £115

£3,000.01 to £5,000 | £205

£5,000.01 to £10,000 | £455

£10,000.01 to £200,000 | 5% of the claim

More than £200,000 | £10,000

To calculate 5% of the value of the claim, take the amount you’re claiming and multiply it by 0.05. If necessary, round down the result to the nearest 1p.

The fee will be calculated for you if you make your claim online.

If you do not know the claim amount

Use the paper claim form if you do not know the exact amount - you cannot make a claim online.

You’ll need to estimate the amount you’re claiming and pay the fee for that amount.

For example, if you estimate you’re claiming between £3,000.01 and £5,000, you’d have to pay £205.

If you leave the ‘amount claimed’ blank, the fee is £10,000.

Pay the court fee

Pay by credit or debit card if you’re making a claim online.

If you use the paper claim form, pay by credit or debit card by sending a letter with your form asking to pay by card. Include your telephone number and a suitable time for the court to call you and take the payment.

You can also pay by postal order or cheque (payable to ‘HM Courts and Tribunals Service’) if you use the paper claim form.

You may have to pay more fees later on - for example, if there’s a court hearing or you need to get a judgment enforced.

You may be able to claim the fees back if you win the case.

Find out more about court fees.

Claim the interest

You can claim interest on the money you’re owed.

The interest will be calculated for you if you claim for an unspecified amount.

You need to work out the interest yourself if you’re claiming for a fixed (‘specified’) amount of money.

Work out the interest

If you’re owed money by another business, you can charge interest on a late commercial payment.

For other types of debt, the rate is usually 8%.

To calculate this, use the steps below.

Work out the yearly interest: take the amount you’re claiming and multiply it by 0.08 (which is 8%).

Work out the daily interest: divide your yearly interest from step 1 by 365 (the number of days in a year).

Work out the total amount of interest: multiply the daily interest from step 2 by the number of days the debt has been overdue.

After you make your claim

The person or business who owes you money (the ‘defendant’) must respond to your claim. You’ll be sent a letter or email telling you the date they need to respond by.

What to do if you get paid

Tell the defendant when you’ve received their payment.

How you do this depends on how you made the claim.

If you used a paper claim form

Contact the court where you sent your claim.

If you claimed online

You can either:

update your claim in the Money Claim Online service

call or email - the contact details you use depends on how much money you’re claiming.

If your claim is less than £10,000, contact Civil Money Claims.

If your claim is between £10,000 and £100,000, contact Money Claim Online.

If you do not get a response

You can ask the court to order the defendant to pay if they do not respond to your claim.

You need to:

request a judgment if you made your claim online

use request for judgment form N225 if you claimed a fixed (‘specified’) amount using a claim form

use request for judgment form N227 if you claimed an unspecified amount using a claim form

If you disagree with the response

You might have to go to a court hearing if:

the defendant says they do not owe you any money

they disagree with the amount you’ve claimed

you do not agree with how they’ve offered to repay you

The court may send you a questionnaire asking for more information on the case.

If your claim is under £10,000, you’ll be asked if you’d like to use the court’s small claims mediation service to reach an agreement with the defendant.

Fill in the questionnaire and return it to the court. You’ll have to pay an extra court fee.

The judge might not award you costs if they think you’ve made no effort to agree out of court.

What happens at the hearing

Do not go to court if you have coronavirus (COVID-19) symptoms or if you’re self-isolating or in quarantine. Tell the court if you cannot attend.

If there’s a hearing, you can:

represent yourself

pay for a barrister or solicitor to represent you

ask someone to advise you in court - they do not have to be a lawyer

ask someone to speak on your behalf - you might need to get the court’s permission

Your hearing can be held in the judge’s room or a courtroom in a county court if your claim is for less than £10,000. There might be a more formal hearing if you’re claiming for more.

After the hearing

You’ll get a decision on the day of the hearing. The court will also send you a copy of the decision by post.

If you win your case, the court will order the person or business who owes you money (the ‘debtor’) to pay you. There are ways the court can collect your payment if they ignore the court order.

Appeal the decision

You can appeal the decision if you think the judge made a mistake during the hearing. You must do this within 21 days of getting the decision.

Find out which court or tribunal to appeal to.

Contact Citizens Advice to get advice on appealing.

Enforce a judgment

You can ask the court to collect payment from the person or business who owes you money (the ‘debtor’) if they do not pay you after receiving the court order.

You must pay a court fee when you ask the court to collect the payment.

Find out what the debtor can afford to pay

Ask the court to order the debtor to attend court to provide evidence of their income or spending, for example bills and statements.

If the money is owed by a business, you can ask for an officer from the company to attend court and give details of its accounts.

You can then decide if you want the court to take further action to collect your payment.

Send bailiffs to collect payment

You can ask the court to send bailiffs to collect the money.

The bailiff will ask for payment within 7 days. If the debt is not paid, the bailiff will visit the debtor’s home or business to see if anything can be sold to pay the debt.

You can apply to either a county court or the High Court if you’re owed between £600 and £5,000.

You may need legal advice if you apply at the High Court.

How you apply to the court depends on how you made your claim.

You claimed online

If your reference number has ‘MC’ in it, download and fill in either:

form N323 - to apply at a county court (you must be owed £5,000 or less)

form N293A - to apply at the High Court (you must be owed at least £600)

Otherwise, enforce a judgment using Money Claim Online.

You used a paper claim form

Download and fill in either:

Get money deducted from wages

You can ask the court to take money from the debtor’s wages to pay the debt. They do this by sending an order to the debtor’s employer.

Download and fill in a request for an attachment of earnings order form N337.

Freeze assets or money in an account

The court can freeze money in the debtor’s bank, building society or business account.

Download and fill in a request for a third party debt order form N349.

The court will decide if money from the account can be used to pay the debt.

Charge the debtor’s land or property

You can ask the court to charge the debtor’s land or property.

Download and fill in a request for a charging order form N379.

If the land or property is sold, the debtor must pay this charge before they get their money.


Respond to a court claim for money

How to respond

You’ll get a letter or email if someone claims you owe them money.  You must respond by the date on the email or letter you receive.

You can respond by:

paying the full amount

paying only what you think you owe

defending the claim (if you do not think you owe any money or you’ve already paid)

You might have to pay more or get a county court judgment (CCJ) if you do not respond in time.

If you need more time to respond

You can ask for another 14 days to respond if you’re defending the claim or paying only what you think you owe.

Download and fill in the acknowledgement of service form in the response pack.

Send it to the court address on the claim form.

The process is different in Scotland.

Pay the full amount

Send a cheque or postal order made payable to the person or business you owe money to (the ‘claimant’). Their name and address will be on the claim form.

You can also pay the claimant in person.

Keep proof (for example, your bank records or a receipt from the claimant) to show you’ve paid.

If you cannot afford to pay the full amount at once

You can offer to pay in instalments or by a certain date.

Download and fill in either:

form N9A if the claim is for a specified amount

form N9C if the claim is for an unspecified amount

You must say how you want to pay (a certain amount per month for example) and send the completed form to the address on the claim form.

If the claimant does not accept your offer, the court will decide how you pay.

You can be taken to court and you may have to pay extra costs if you do not keep up the payments.

If the claim is for an unspecified amount

Download and fill in admission form N9A. Either:

ask the court to decide how much you owe

offer to pay a certain amount

You might have to give more information at a hearing if you ask the court to decide or the claimant rejects your offer.

If you’ve already paid

You must defend the claim if you’ve already paid the claimant.

You might still have to pay court fees if you paid the claimant after they made the claim.

Pay some of the money

If you do not agree with the amount on the claim form, you can apply to the court to pay only what you think you owe.

You must send the court both:

an admission form to say how much you’ll pay

a defence form to explain why you do not owe the full amount

Respond online if the claim was made using Money Claim Online.

Otherwise, which forms you fill in will depend on whether the claim is for a fixed (‘specified’) or an unspecified amount.

The claim is for a specified amount

Download and fill in:

admission form N9A

defence form N9B

The claim is for an unspecified amount

Download and fill in:

admission form N9C

defence form N9D

If your offer is rejected

The court will decide how much you owe.

You might have to give more information at a hearing. The court will tell you when and where the hearing will take place.

Defend the claim

You can defend the claim if either:

you do not think you owe the other person or business any money

you’ve already paid them

You can also make a claim against them (‘counterclaim’) if you think they owe you money. You might have to pay a court fee.

Download and fill in either:

form N9B if the claim is for a fixed (‘specified’) amount

form N9D if the claim is for an unspecified amount

You can respond online if the claim was made using an online service.

The court will decide whether you owe any money, and how much.

Going to a court hearing

If there’s a hearing, you can:

represent yourself

pay for a barrister or solicitor to represent you

ask someone to advise you in court - they do not have to be a lawyer

ask someone to speak on your behalf - you might need to get the court’s permission

Your hearing can be held in the judge’s room or a courtroom in a county court if the claim is for less than £10,000. There might be a more formal hearing if the claim is for more.

Do not go to court if you have coronavirus (COVID-19) symptoms or if you’re self-isolating or in quarantine. Tell the court if you cannot attend.

After the hearing

You’ll get a decision on the day of the hearing. The court will also send you a copy of the decision by post.

Appeal the decision

You can ask to appeal the decision if you think the judge made a mistake during the hearing. You must ask within 21 days of the date the decision was made.

Find out which court or tribunal to appeal to.

Contact Citizens Advice to get advice on appealing.


Wind up a company that owes you money

Overview

You can apply to the court to close or ‘wind up’ a company if it cannot pay its debts. This is also known as compulsory liquidation.

To wind up a company you must:

be owed £750 or more

be able to prove that the company cannot pay you

You need to fill in forms and send them to the right court to apply to wind up a company.

Your application to the court is known as a ‘winding-up petition’. If you’re successful:

the company assets are sold

any legal disputes are settled

the company collects money it’s owed

funds are paid to you and any other creditors

You might not get all or any of the money you’re owed.

There are also other ways to recover money that you’re owed. You can get a debt specialist (like a solicitor) to help you recover debt.

Fees

The fees are:

£280 - court fees

£1,600 - petition deposit (to manage the ‘winding-up’)

You might be able to get the fees back if the company can afford to repay them.

Scottish companies

There are different rules on winding up a company in Scotland.

Apply

You must send the right form to the court before they can deal with your petition. You might want to get legal help to make sure you submit your petition correctly.

Forms

Fill in form Comp 1 and make 3 copies.

You’ll need to:

make sure the company’s details are correct

state if any European Community regulations apply (this applies if the company is registered in or does business in England and Wales)

ask the court to restore the company (if it’s been dissolved) before winding up the company

You need to provide evidence the company owes you money, for example:

a statutory demand - include the amount and date the demand was served

a court judgment - include the amount awarded (and your costs and interest), the date of the judgment, the court name and case number

You’ll also need to fill in form Comp 2 confirming the details of your petition.

Where to send the petition

Where you send the petition depends on how much ‘paid-up share capital’ the company has - you can find this on the Companies House register.

Paid-up share capital is £120,000 or more

Submit the petition online. It’ll go to the High Court.

You pay the court fees online, but not the petition deposit. You’ll get an email after you apply, telling you how to pay the deposit.

Paid-up share capital is under £120,000

You’ll need to find the court nearest to the company’s registered office - the court must deal with bankruptcy.

Submit the petition online if it’s one of these courts:

Admiralty and Commercial Court

Chancery Division

Companies Court

High Court (including Bankruptcy Court)

London Mercantile Court

Rolls Building

If it was another court you’ll need to submit the petition by post. You can pay the fees by cash, postal order or a building society, bank or solicitor’s cheque made payable to ‘HM Courts and Tribunals Service’.

After you apply

You’ll get a copy of your petition from the court after you pay the petition deposit. You must:

deliver (‘serve’) it to a company director or employee

provide a certificate of service to the court confirming that the petition has been served on the company

You can get a ‘process server’ to help you - your solicitor can arrange this.

You can serve the petition by attaching it to the company’s front door or leaving it at the office if you cannot serve it in person.

The day after you serve the petition, send a copy to the relevant liquidator, administrative receiver, administrator or supervisor if the company is involved in:

voluntary liquidation

administrative receivership

an administration order

a voluntary arrangement

The court hearing

If the court accepts your petition, they’ll arrange a date for a hearing.

Announce the hearing

When you’re given a date for the hearing, you must formally announce when and where it will take place.

At least 7 working days before the hearing, place an advert in The Gazette to say the petition has been served.

Send a copy of the advert and form Comp 3 to the court at least 5 working days before the hearing.

Give a list of everyone who will be attending to the court by 4:30pm on the day before the hearing.

The advert must state:

that you’ve presented a petition to wind up the company

your name and address

your solicitor’s name and address (if you have one)

the date you presented the petition

the court where the hearing will take place

that anyone wanting to come to the hearing must give notice

After the hearing

If the petition is successful, the court will issue a winding-up order.

The court will put an official receiver in charge of the liquidation. They’ll start the process of turning the company’s assets into money that can be used to pay the company’s debts.

Other creditors can register to claim the money they’re owed.


Appeal a decision about a lawful development certificate

When you can appeal

Your local planning authority makes decisions about lawful development certificates.

You can appeal against a lawful development certificate decision if either:

you disagree with it

the decision was not made within 8 weeks (6 weeks for work to a listed building)

Do not appeal if you’ve already been given an enforcement notice. You may have to pay additional costs if you do.

Only the person who made the lawful development certificate application can appeal. If you did not apply, you can comment on an appeal instead.

There’s no fee for appealing.

Deadline for appealing

There’s normally no deadline. If you’re appealing an application about a listed building lawful development certificate, you must appeal within 6 months of the decision.

You can apply for planning permission at the same time as appealing a lawful development certificate decision.

When you can expect a decision

You’ll get a decision once your appeal is validated.

Check how long appeal decisions normally take.

How to appeal

Because of coronavirus (COVID-19), you cannot currently appeal by post. You can still appeal to the Planning Inspectorate online.

If you want to appeal more than one decision you must make a separate appeal for each.

You also need to send a copy of your appeal, including all supporting documents, to your local planning authority. The Planning Inspectorate will tell you how to do this.

Documents you must provide

You’ll need to submit copies of:

your original application

the local planning authority’s decision notice - if they did not make a decision, send a copy of the letter acknowledging your application

all plans, drawings and documents you sent to the local planning authority

any letters or emails between you and the local planning authority

You’ll also need to submit:

a map of the site

any other documents that directly support your appeal, for example your grounds of appeal

If you think your land or building is now lawful because the time limit for enforcement has passed, you also need to submit evidence like:

dated photographs of the site

letters from neighbours

receipts or invoices for work

plans and drawings

You can upload these documents or pictures of these documents when you appeal.

Comment on an appeal

Anyone can comment on a lawful development certificate appeal. Find the case on the appeals casework portal. The deadline for comments is 6 weeks after the start date of the appeal.

Your local planning authority must tell anyone who has commented on the application (‘interested parties’) that there’s an appeal. The local planning authority has to do this within 2 weeks of the appeal being validated by the Planning Inspectorate.

If there’s going to be an inquiry, interested parties can apply to have ‘rule 6 status’, which means they’ll play a much bigger part. For example, they can call witnesses and give evidence.

Read the detailed guidance about taking part in an appeal.

After you appeal

The Planning Inspectorate will check your appeal to make sure it’s valid. They’ll tell you what happens next and how long your appeal may take.

The Planning Inspectorate will then consider your appeal. Check how long planning appeal decisions normally take.

If anyone behaves unreasonably

You can apply for an ‘award of costs’ if anyone involved in your appeal has cost you money by behaving unreasonably, for example missing deadlines. You can have costs awarded against you too.

You can complain about how the Planning Inspectorate handled your appeal. There’s no time limit for complaints.

If you disagree with the appeal decision

You can challenge the decision in the High Court if you think the Planning Inspectorate made a legal mistake.

Get advice from a lawyer if you’re unsure about this.


Business rates

Overview

Business rates are charged on most non-domestic properties, like:

shops

offices

pubs

warehouses

factories

holiday rental homes or guest houses

You’ll probably have to pay business rates if you use a building or part of a building for non-domestic purposes.

Business rates are handled differently in Scotland and Northern Ireland.

What to pay and when

Your local council will send you a business rates bill in February or March each year. This is for the following tax year. You can also estimate your business rates bill.

You can get help with business rates from:

your council if you have questions about your bill

the Valuation Office Agency (VOA) if you think your ‘rateable value’ is wrong

Relief schemes

You may be able to get business rates relief from your local council to reduce your bill. This is sometimes automatic, but you may need to apply.

The process depends on whether you’re in England or Wales.

Who does not need to pay

Certain properties are exempt from business rates, for example farm buildings or places used for the welfare of disabled people.

If you own a stable

You usually need to pay business rates on your stables, unless you use your horses for farming.

You may pay Council Tax instead if your stables are in your garden. Contact VOA to check if you’re not sure which you should pay.

How your rates are calculated

Business rates are worked out based on your property’s ‘rateable value’.

This is its open market rental value on 1 April 2015, based on an estimate by the Valuation Office Agency (VOA).

You can estimate your business rates by multiplying the rateable value by the correct ‘multiplier’ (an amount set by central government).

Your bill will be reduced if your property’s eligible for business rates relief.

If you think your rates are wrong

You can ask for your property’s rateable value to be corrected if you think it’s wrong.

If you’re asked to provide rental information

The VOA may ask you to provide rental information about your property so they can work out its rateable value.

Contact the VOA if you need more time to send in your rental information.

Revaluation

At revaluation, the Valuation Office Agency (VOA) adjusts the rateable value of business properties to reflect changes in the property market.

It usually happens every 5 years. The most recent revaluation came into effect in England and Wales on 1 April 2017, based on rateable values from 1 April 2015.

You can check your valuation when you estimate your business rates.

What happens at revaluation

At revaluation:

all properties are given a new rateable value

multipliers are revised

This means that a change in your rateable value does not always mean a change in your bill.

To make sure your valuations are accurate, you may need to give VOA up-to-date rental evidence for your property at revaluation.

Get business rates relief

You may be able to get a discount from your local council if you’re eligible for business rates relief.

For example you may be able to get:

transitional relief so that changes to your bill as a result of revaluation are phased in gradually

small business relief so that you pay no business rates if your rateable value is below £15,000

Get help with business rates

You may be able to get a discount from your local council on your business rates if you’re eligible for one or more business rates relief schemes.

For help with your property’s rateable value, contact the Valuation Office Agency (VOA).

For help with your business rates bill (for example to pay in instalments) or rate relief, contact your council.

Get professional advice

You can also get help from a qualified rating surveyor through one of the following organisations:

Royal Institution of Chartered Surveyors (RICS)

Institute of Revenues, Rating and Valuation (IRRV)

Rating Surveyors Association

You may be charged for any advice you get from a rating surveyor right from the start.

You can call the RICS enquiry line for advice. The first 30 minutes are free.

If your business or premises change

Your business rates could change if:

you move or make changes to your premises

the nature of your business changes

you sublet part of your property

you merge 2 or more properties into 1

You must report any changes to ensure you’re paying the right amount and do not get a backdated increase in your bill.

Report changes using the Valuation Office Agency (VOA) service in England or Wales.

If your premises are affected by local disruption

You may get a temporary reduction in your business rates if your premises are affected by severe local disruption (like flooding, building or roadworks).

Report changes using the VOA service.

Working at home

You do not usually have to pay business rates for home-based businesses if you:

use a small part of your home for your business, for example if you use a bedroom as an office

sell goods by post

You may need to pay business rates as well as Council Tax if:

your property is part business and part domestic, for example if you live above your shop

you sell goods or services to people who visit your property

you employ other people to work at your property

you’ve made changes to your home for your business, for example converted a garage to a hairdresser’s

Contact the Valuation Office Agency (VOA) to find out if you should be paying business rates. In Scotland, contact your local assessor.

Pubs and licensed trade

In England and Wales, the Valuation Office Agency (VOA) works out your rateable value based on the annual level of trade (excluding VAT) that a pub is expected to achieve if operated in a reasonably efficient way.

This is called ‘fair maintainable trade’ and it’s based on:

the type of pub or licensed premises

the area it’s in

the services it offers, for example food, gaming, or sports screenings

The VOA also looks at rents and turnovers to work out the fair maintainable trade figure, then applies a percentage to work out the rateable value.

The percentages are agreed with the British Beer and Pub Association and they’re in the VOA’s pub guide.

You can read more about how the VOA values pubs and other licensed premises for business rates.

Contact the VOA if you want to check the figures they’re using or do not agree with the figures being used.

You can also find and check your business rates valuation online.

You’ll need to provide details of turnover (excluding VAT) for all sources, such as liquor, food and gaming.

You can also use the online contact VOA service.

Scotland

In Scotland, your local assessor works out your rateable value.

If you want to check the figures they’re using or do not agree with the figures being used, contact your local assessor.

Self-catering and holiday let accommodation

If your property is in England and available to let for short periods that total 140 days or more per year, it will be rated as a self-catering property and valued for business rates.

If your property is in Wales it will be rated as a self-catering property and valued for business rates if it’s both:

actually let for 70 days

There are different rules in Scotland.

The Valuation Office will work out the rateable value of your property based on its type, size, location, quality and how much income you’re likely to make from letting it.

If you only let one property and its rateable value is less than £15,000 you may be eligible for small business rate relief.


Business rates relief

Overview

Some properties are eligible for discounts from the local council on their business rates. This is called ‘business rates relief’.

Rates relief is handled differently in Scotland,  Wales and Northern Ireland.

You have to contact your local council to see if you’re eligible and apply for:

small business rate relief

rural rate relief

charitable rate relief

enterprise zone relief

hardship relief

retail discount

local newspaper relief

Your council automatically applies:

exempted buildings and empty buildings relief

transitional relief if your rates change by more than a certain amount at revaluation

Contact your local council if you’re not getting a relief you think you’re entitled to.

Find out what support is available for businesses, including business rates grants or holidays, because of coronavirus (COVID-19).

If your premises are affected by local disruption

You may get a temporary reduction in your business rates if your premises are affected by severe local disruption (like flooding, building or roadworks).

You can report that something external to the premises has affected its value using the Valuation Office Agency service.

Small business rate relief

You can get small business rate relief if:

your property’s rateable value is less than £15,000

your business only uses one property - you may still be able to get relief if you use more

Contact your local council to apply for small business rate relief.

What you get

You will not pay business rates on a property with a rateable value of £12,000 or less.

For properties with a rateable value of £12,001 to £15,000, the rate of relief will go down gradually from 100% to 0%.

If you use more than one property

When you get a second property, you’ll keep getting any existing relief on your main property for 12 months.

You can still get small business rate relief on your main property after this if both the following apply:

none of your other properties have a rateable value above £2,899

the total rateable value of all your properties is less than £20,000 (£28,000 in London)

You’re a small business but do not qualify for small business rate relief

If your property in England has a rateable value below £51,000, your bill will be calculated using the small business multiplier, which is lower than the standard one. This is the case even if you do not get small business rate relief.

The small business multiplier is 49.1p and the standard multiplier is 50.4p from 1 April 2019 to 31 March 2020. The multipliers may be different in the City of London.

Rural rate relief

You could get rural rate relief if your business is in a rural area with a population below 3,000.

You will not pay business rates if your business is in an eligible area and either:

the only village shop or post office, with a rateable value of up to £8,500

the only public house or petrol station, with a rateable value of up to £12,500

Contact your local council to check you’re eligible and to apply for rural rate relief.

Charitable rate relief

Charities and community amateur sports clubs can apply for charitable rate relief of up to 80% if a property is used for charitable purposes.

Contact your local council to:

check if you’re eligible

find out if they can top up the discount to 100% (called ‘discretionary relief’)

If you’re not eligible for charitable rate relief

You may still be able to get discretionary relief if you’re a non-profit or voluntary organisation. Contact your council to find out.

Enterprise zones

If you’re starting up or relocating to an enterprise zone you could qualify for business rates relief.

The council works out how the relief is applied. You could get up to £55,000 a year over 5 years.

Find your local enterprise zone to check whether it offers business rates relief, and how and when to apply.

Exempted buildings and empty buildings relief

Exempted buildings

Certain properties are exempt from business rates.

You may not have to pay business rates on:

agricultural land and buildings, including fish farms

buildings used for training or welfare of disabled people

buildings registered for public religious worship or church halls

However, there are strict legal requirements for these exemptions.

If your property is in England, you can report that you think it should be exempt using the Valuation Office Agency service.

There’s a different way to report exemptions if your property is in Wales.

Empty properties

You do not have to pay business rates on empty buildings for 3 months. After this time, most businesses must pay full business rates.

Some properties can get extended empty property relief:

industrial premises (for example warehouses) are exempt for a further 3 months

listed buildings - until they’re reoccupied

buildings with a rateable value under £2,900 - until they’re reoccupied

properties owned by charities - only if the property’s next use will be mostly for charitable purposes

community amateur sports clubs buildings - only if the next use will be mostly as a sports club

Contact your local council to let them know when your property becomes vacant.

Hardship relief

In England, councils can reduce your business rates bill with hardship relief.

To be eligible, you must satisfy your council that both:

you would be in financial difficulties without it

giving hardship relief to you is in the interests of local people

Contact your local council and explain your situation if you think you’re eligible.

Transitional relief

Transitional relief limits how much your bill can change each year as a result of revaluation.

This means changes to your bill are phased in gradually, if you’re eligible.

You get transitional relief if your:

property is in England

rates go up or down by more than a certain amount

Your council will adjust your bill automatically if you’re eligible.

How much your bill can change by

How much your bill can change by from one year to the next depends on both:

your property’s rateable value

whether your bill is increasing or decreasing as a result of revaluation

You stop getting transitional relief when your bill reaches the full amount set by a revaluation.

The business rates year is from 1 April to 31 March the following year.

If your bill is increasing

Rateable value | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022

Up to £20,000 (£28,000 in London) | 5.0% | 7.5% | 10.0% | 15.0% | 15.0%

20,001 (28,001 in London) to £99,999 | 12.5% | 17.5% | 20.0% | 25.0% | 25.0%

Over £100,000 | 42.0% | 32.0% | 49.0% | 16.0% | 6.0%

If your bill is decreasing

Up to £20,000 (£28,000 in London) | 20.0% | 30.0% | 35.0% | 55.0% | 55.0%

20,001 (28,001 in London) to £99,999 | 10.0% | 15.0% | 20.0% | 25.0% | 25.0%

Over £100,000 | 4.1% | 4.6% | 5.9% | 5.8% | 4.8%

If you’ve received a transitional certificate

The transitional certificate value will be used in the business rates calculation for your property instead of the usual rateable value.

If you disagree with the value of the certificate, contact the Valuation Office Agency (VOA).

Retail discount

You could qualify for retail discount if your business is a:

shop

restaurant, café, bar or pub

cinema or music venue

hospitality or leisure business - for example, a gym, a spa, a casino or a hotel

Contact your local council to find out if you’re eligible.

What you’ll get

If you’re eligible, you could get:

100% off your business rates bills for the 2020 to 2021 tax year (1 April 2020 to 31 March 2021)

100% off your business rates bills for the first 3 months of the 2021 to 2022 tax year (1 April 2021 to 30 June 2021)

66% off your business rates bills for the rest of the 2021 to 2022 tax year (1 July 2021 to 31 March 2022) - up to a total value of £2 million

If your business was legally allowed to open during the national lockdown starting 5 January 2021, your discount for 1 July 2021 to 31 March 2022 will be capped at £105,000 rather than £2 million.

You can get the retail discount on top of any other business rates relief you’re eligible for.

If you opt out of the retail discount for the 2021 to 2022 tax year you cannot change your mind.

Local newspaper relief

You could get local newspaper relief if your property is used as office premises for journalists and reporters on a local newspaper.

The relief is a £1,500 reduction in business rates for eligible properties per year.

You can only get the relief for one property per newspaper even if more than one property is used as offices for the newspaper.

If several local newspapers use the same office, they can only get the relief on one newspaper title.

You cannot get the relief for magazines.

Nurseries discount

You could qualify for nurseries discount if both:

your business is on Ofsted’s Early Years Register

your premises is wholly or mainly used to provide the Early Years Foundation Stage of education

What you’ll get

If you’re eligible, you could get:

66% off your business rates bills for the rest of the 2021 to 2022 tax year (1 July 2021 to 31 March 2022) - up to a total value of £105,000

You can get the nurseries discount on top of any other business rates relief you’re eligible for.

If you opt out of the nurseries discount for the 2021 to 2022 tax year you cannot change your mind.


Energy Performance Certificates for your business premises

Overview

An Energy Performance Certificate (EPC) rates how energy efficient your building is using grades from A to G (with ‘A’ the most efficient grade).

When you need an EPC

You must have an EPC if:

you rent out or sell the premises

a building under construction is finished

there are changes to the number of parts used for separate occupation and these changes involve providing or extending fixed heating, air conditioning or mechanical ventilation systems

You can be fined between £500 and £5,000 based on the rateable value of the building if you don’t make an EPC available to any prospective buyer or tenant.

When you must display one

You must display an EPC by fixing it to your commercial building if all these apply:

the total useful floor area is over 500 square metres

the building is frequently visited by the public

an EPC has already been produced for the building’s sale, rental or construction

How much it costs

The cost of an EPC will depend on the building being assessed. All EPCs are valid for 10 years.

How to get a certificate

You can only get an Energy Performance Certificate (EPC) from a commercial energy assessor.

The type of assessor you’ll need will depend on the complexity and features of the building. If you need advice on choosing one, speak to a commercial (non-domestic) energy assessor or contact the approved accreditation scheme they belong to.

Exemptions

You don’t need an Energy Performance Certificate (EPC) if you can demonstrate that the building is any of these:

listed or officially protected and the minimum energy performance requirements would unacceptably alter it

a temporary building only going to be used for 2 years or less

used as a place of worship or for other religious activities

an industrial site, workshop or non-residential agricultural building that doesn’t use much energy

a detached building with a total floor space under 50 square metres

due to be demolished by the seller or landlord and they have all the relevant planning and conservation consents

Vacant buildings and demolition

A building is also exempt if all of the following are true:

it’s due to be sold or rented out with vacant possession

it’s suitable for demolition and the site could be redeveloped

the buyer or tenant has applied for planning permission to demolish it

Appeal a penalty charge

You can ask for a review if you get a penalty charge notice. The notice will tell you how to do this. If the review fails you’ll get a letter confirming your penalty.

You can then appeal to the county court (or sheriff court in Scotland) but you must do this within 28 days of receiving your confirmed penalty.


Fire safety in the workplace

Who's responsible

You’re responsible for fire safety in business or other non-domestic premises if you’re:

an employer

the owner

the landlord

an occupier

anyone else with control of the premises, for example a facilities manager, building manager, managing agent or risk assessor

You’re known as the ‘responsible person’. If there’s more than one responsible person, you have to work together to meet your responsibilities.

The Fire Safety Order also applies if you have paying guests, for example if you run a bed and breakfast, guesthouse or let a self-catering property.

Fire safety rules are different in Scotland and Northern Ireland.

Responsibilities

As the responsible person you must:

carry out a fire risk assessment of the premises and review it regularly

tell staff or their representatives about the risks you’ve identified

put in place, and maintain, appropriate fire safety measures

plan for an emergency

provide staff information, fire safety instruction and training

You can read about how to make sure your premises are safe from fire.

Non-domestic premises

Non-domestic premises are:

all workplaces and commercial premises

all premises the public have access to

the common areas of multi-occupied residential buildings

Shared premises

In shared premises it’s likely there’ll be more than one responsible person. You’ll need to co-ordinate your fire safety plans to make sure people on or around the premises are safe.

For common or shared areas, the responsible person is the landlord, freeholder or managing agent.

Alterations, extensions and new buildings

When building new premises or doing building work on existing premises, you must comply with building regulations. This includes designing fire safety into the proposed building or extension.

Read the fire safety building regulations.

Penalties and enforcement

You could be fined or go to prison if you do not follow fire safety regulations.

Local fire and rescue authorities inspect premises and can issue fire safety notices telling you about changes you need to make.

Fire risk assessments

As the responsible person you must carry out and regularly review a fire risk assessment of the premises. This will identify what you need to do to prevent fire and keep people safe.

You must keep a written record of your fire risk assessment if your business has 5 or more people.

Carrying out the assessment

Identify the fire hazards.

Identify people at risk.

Evaluate, remove or reduce the risks.

Record your findings, prepare an emergency plan and provide training.

Review and update the fire risk assessment regularly.

The fire safety risk assessment chart gives more detailed information about these steps.

You’ll need to consider:

emergency routes and exits

fire detection and warning systems

fire fighting equipment

the removal or safe storage of dangerous substances

an emergency fire evacuation plan

the needs of vulnerable people, for example the elderly, young children or those with disabilities

providing information to employees and other people on the premises

staff fire safety training

Help with the assessment

You can do the fire risk assessment yourself with the help of standard fire safety risk assessment guides.

If you do not have the expertise or time to do the fire risk assessment yourself you need to appoint a ‘competent person’ to help, for example a professional risk assessor.

Your local fire and rescue authority might be able to give you advice if you’re not sure your risk assessment’s been carried out properly. However, they cannot carry out risk assessments for you.

Assessment guides

You can download the following guides on risk assessments in:

offices and shops

factories and warehouses

sleeping accommodation

residential care premises

educational premises

small and medium places of assembly (holding 300 people or less)

large places of assembly (holding more than 300 people)

theatres, cinemas and similar premises

open air events and venues

healthcare premises

animal premises and stables

transport premises and facilities

You can also find guidance on:

risk assessments if you work in construction

purpose-built blocks of flats and other types of housing if you’re a landlord

Fire safety and evacuation plans

Your plan must show how you have:

a clear passageway to all escape routes

clearly marked escape routes that are as short and direct as possible

enough exits and routes for all people to escape

emergency doors that open easily

emergency lighting where needed

training for all employees to know and use the escape routes

a safe meeting point for staff

People with mobility needs

You should also make special arrangements for people with mobility needs, for example make sure there are people to help wheelchair users get downstairs if there’s a fire.

Fire safety equipment, drills and training

Fire detection and warning systems

You must have a fire detection and warning system. You may need different types of detectors, depending on the type of building and the work carried out in it.

Fire fighting equipment

The types of equipment you need depend on your business premises. You’ll need to have any equipment properly installed, tested and maintained and train your staff to use them if necessary.

Maintenance and testing

You must carry out regular checks to make sure that:

all fire alarm systems are working

the emergency lighting is working

you record any faults in systems and equipment

all escape routes are clear and the floor is in good condition

all fire escapes can be opened easily

automatic fire doors close correctly

fire exit signs are in the right place

Fire drills and training

You need to train new staff when they start work and tell all employees about any new fire risks.

You should carry out at least one fire drill per year and record the results. You must keep the results as part of your fire safety and evacuation plan.

Enforcement, appeals and penalties

Your local fire and rescue authority visits premises to check the fire risk assessment and fire prevention measures are appropriate. Fire safety officers should help you understand the rules and comply with them.

They can also take action if they think your fire safety measures are not adequate. For example, they might issue an informal notice suggesting safety measures.

They could also give you a formal fire safety notice. They’ll tell you how to fix the problems described in the notice.

Alterations notice

You could get an alterations notice if your premises have high safety risks or will have high safety risks if the use of the premises changes.

Enforcement notice

You could get an enforcement notice if the fire and rescue authority finds a serious risk that’s not being managed. It will say what improvements are needed by when.

Prohibition notice

These take effect immediately if the fire and rescue authority thinks the fire risk is so great that access to your premises needs to be prohibited or restricted.

Appeals

You may be able to arrange an informal review from your fire and rescue authority if you disagree with the decision to issue a fire safety notice.

You can appeal to your local magistrates’ court within 21 days of receiving a notice.

In certain circumstances, you and the fire and rescue authority can ask for a ‘determination’ from the Home Secretary to resolve a dispute.

Penalties

Minor penalties can be up to £5,000. Major penalties can have unlimited fines and up to 2 years in prison.


Planning permission

When you need it

You’ll probably need planning permission if you want to:

build something new

make a major change to your building, such as building an extension

change the use of your building

To find out if your project will need planning permission, contact your local planning authority (LPA) through your local council.

Find out about the planning system in Scotland, Wales and Northern Ireland.

Applying for planning permission

To apply for planning permission, contact your LPA through your local council.

If your project needs planning permission and you do the work without getting it, you can be served an ‘enforcement notice’ ordering you to undo all the changes you have made.

It’s illegal to ignore an enforcement notice, but you can appeal against it.

When you do not need it

Some building projects do not need planning permission. This is known as ‘permitted development rights’.

Building projects that normally have permitted development rights include:

industrial premises and warehouses

some outdoor signs and advertisements - though there are special rules around adverts

demolition - but before you begin you must get approval to demolish from your local planning authority (LPA) through your local council

There are other projects that might not need planning permission - for example, projects that will have no impact on your neighbours or the environment. If you think this could apply to your project, check with your LPA through your local council.

Community Rights in England

If your building project benefits the local community, and the community supports it, you may not have to go through the normal planning permission process. Neighbourhood planning lets your community grant planning permission directly under certain circumstances.

After you apply

Your local planning authority (LPA) will decide whether to grant planning permission for your project based on its development plan. It will not take into account whether local people want it.

To decide whether a planning application fits with its development plan, an LPA will look at:

the number, size, layout, siting and external appearance of buildings

the infrastructure available, such as roads and water supply

any landscaping needs

what you want to use the development for

how your development would affect the surrounding area - for example, if it would create lots more traffic

In most cases, planning applications are decided within 8 weeks. In England, for unusually large or complex applications the time limit is 13 weeks. If the decision takes longer, you can appeal.

Appeals

If your application is refused, try to come to an agreement with the local planning authority (LPA) by adjusting your plans.

If you cannot reach an agreement, you can appeal.

Appeals can take several months to be decided.

What you can appeal against

You can only appeal against a decision if the LPA:

refuses your application

grants permission but with conditions you object to

refuses to change or remove a condition of planning permission that has been granted with conditions

refuses to approve something reserved under an ‘outline permission’ – planning permission for a general idea, not of a specific plan

refuses to approve something that you were told to build by your LPA as part of a previous planning permission – the current development was one of the ‘conditions’ stated in the previous planning permission

does not make a decision on the application within the deadline and does not get your written consent to change the deadline

serves you with an enforcement notice because it thinks you have broken planning permission and you do not agree

Read the guidance on the appeals process.


Water and sewerage rates for businesses

Water

You’ll have to pay for any water your business uses, and for the drainage of water and effluent (liquid waste) from your premises.

Ofwat regulates the water industry in England and Wales. There are different regulators in Scotland and Northern Ireland.

How you’ll be charged

You’ll be charged either:

for the water you use, plus a set charge (if you’ve got a meter)

a set amount, usually based on the value of your property

Your business could be eligible for a large user tariff, meaning your water might be cheaper. This is because it often costs less to supply larger businesses.

Sewerage and effluent

You’ll be charged for any ‘foul sewerage’ (such as wastewater from a toilet or kitchen) and drainage from your property. The amount you pay is usually linked to how much water you use.

You’ll also have to pay for any effluent (liquid waste) you produce. Effluent is water contaminated with things like:

fats, oils and grease

chemicals

food waste

The amount your water supplier will charge is usually based on the amount and strength of the effluent before it reaches the sewer.

Sewerage charges can either appear on your water bill or your effluent bill, depending on your supplier.

Choosing a supplier

You may be able to choose your water and sewerage service provider depending on where your business is.

In England and Wales you can check with Ofwat whether you can choose your own supplier.

In Scotland choose your supplier from the Water Commission’s list of suppliers.

In Northern Ireland you can’t choose your own supplier - water is supplied by Northern Ireland Water.


Food labelling and packaging

Overview

To sell food and drink products, the label must be:

clear and easy to read

permanent

easy to understand

easily visible

not misleading

You must show certain basic information and list the ingredients. You might also have to show certain warnings.

There are special regulations for labelling wine.

Products sold loose or in catering businesses

If you run a catering business, you sell food loose or package it for sale in your shop, you only need to show:

the name of the food

if any of the ingredients have been irradiated, or have come from genetically modified sources

certain warnings

any food additive you have added

allergen information

You must show more information if you sell meat products loose.

Packaging

If you package food yourself, you must use packaging that’s suitable for food use. Suitable packaging is marked ‘for food contact’ or has a symbol on it that looks like a wine glass and a fork.

There are special rules for using plastics, ceramics or cellophane for packaging. You must have written evidence that you’ve kept to them.

This is known as a ‘declaration of compliance’ and you can get it from your packaging supplier. You also have to get one if you buy food that’s already packaged for sale in any of those materials.

Read the national legislation on food contact materials for England, Northern Ireland, Wales or Scotland.

Food assurance schemes

You could also join voluntary food assurance schemes such as Red Tractor or Lion Eggs. These schemes let customers know food has been produced to certain standards, for example on food safety or animal welfare.

Food labelling - what you must show

You must show the following information:

the name of the food

a ‘best before’ or ‘use by’ date

any necessary warnings

net quantity information

a list of ingredients (if there is more than 1)

the country or place of origin, if required

the lot number or use-by date

any special storage conditions

instructions for use or cooking, if necessary

If you’re selling food in Great Britain (England, Wales and Scotland), you must also include the name and address of the UK or EU business responsible for the information on the food. If the business is not in the UK or EU, you must include the name and address of the importer.

If you’re selling food in Northern Ireland, you must include the name and address of the Northern Irish or EU business responsible for the information on the food. If the business is not in Northern Ireland or the EU, you must include the name and address of the importer.

Check if there are other food labelling standards you must follow.

Quantity information

You must put the net quantity in grams, kilograms, millilitres or litres on the label of:

packaged food over 5g or 5ml

packaged herbs and spices

Solid foods packed in a liquid (or an ice glaze) must show the drained net weight.

The net quantity must be close enough to the name of the food that you can see all this information at the same time. This also applies to the alcoholic strength for alcoholic drinks.

You do not have to show the weight or volume on foods sold by number, for example 2 bread rolls, provided that you can clearly see the number of items inside the packaging.

Read more guidance on quantity labelling.

Information you may have to show

You must also show these if they apply to your product:

a warning for drinks with an alcohol content above 1.2%

a warning if the product contains GM ingredients, unless their presence is accidental and 0.9% or less

a warning if the product has been irradiated

the words ‘packaged in a protective atmosphere’ if the food is packaged using a packaging gas

Country or place of origin

You must show the country or place of origin for:

beef, veal, lamb, mutton, pork, goat and poultry

fish and shellfish

honey

olive oil

wine

fruit and vegetables

You can label certain food from EU countries and Northern Ireland as ‘origin EU’. Food from and sold in Great Britain can be labelled as ‘origin EU’ until 30 September 2022. Check the rules for when to label meat, fish and shellfish with their country of origin.

You must also show the country of origin if customers might be misled without this information, for example if the label for a pizza shows the leaning tower of Pisa but the pizza is made in the UK.

If the primary ingredient in the food comes from somewhere different from where the product says it was made, the label must show this. For example, a pork pie labelled ‘British’ that’s produced in the UK with pork from Denmark, must state ‘with pork from Denmark’ or ‘made with pork from outside the UK’.

Special rules for some products

There are special rules about what you have to show on the label if you supply any of the following:

bottled water

bread and flour

cocoa and chocolate products

fats and oils

fish

fruit juices and nectars

honey

jams and preserves

meat and meat products

milk and milk products

soluble coffee

sugar

Ingredients list

If your food or drink product has 2 or more ingredients (including any additives), you must list them all. Ingredients must be listed in order of weight, with the main ingredient first.

Ingredient quantities

You also have to show the percentage of an ingredient if it is:

highlighted by the labelling or a picture on a package, for example ‘extra cheese’

mentioned in the name of the product, for example ‘cheese and onion pasty’

normally connected with the name by the consumer, for example fruit in a summer pudding

Allergens

You must highlight allergens on the label using a different font, style or background colour. You must also list them in the ingredients.

The allergens you need to highlight and list are:

celery

cereals containing gluten - including wheat, rye, barley and oats

crustaceans - including prawns, crab and lobster

eggs

fish

lupin

milk

molluscs - including squid, mussels, cockles, whelks and snails

mustard

nuts

peanuts

sesame seeds

soya beans

sulphur dioxide or sulphites at levels above 10mg per kilogram or per litre

Food and drink warnings

You must show an appropriate warning on the label if your food contains certain ingredients.

Ingredient | Wording you must use

Allura red (E129) | ‘May have an adverse effect on activity and attention in children’

Aspartame | ‘Contains a source of phenylalanine’

Caffeine over 150 mg/l | ‘Not suitable for children, pregnant women and persons sensitive to caffeine’

Carmoisine (E122) | ‘May have an adverse effect on activity and attention in children’

Liquorice | ‘Contains liquorice’ (you may need extra wording for confectionery or alcohol containing liquorice)

Polyols | ‘Excessive consumption may cause a laxative effect’

Ponceau 4R (E124) | ‘May have an adverse effect on activity and attention in children’

Quinoline yellow (E104) | ‘May have an adverse effect on activity and attention in children’

Raw milk | ‘This milk has not been heat-treated and may therefore contain organisms harmful to health’

Skimmed milk with non-milk fat | There’s no fixed wording, but you must show a warning that the product is unfit or not to be used for babies.

Sulphur dioxide over 10mg/l | ‘Contains sulphur dioxide (or sulphites/sulfites)’

Sunset yellow (E110) | ‘May have an adverse effect on activity and attention in children’

Sweeteners | ‘With sweetener(s)’

Sweeteners and sugar | ‘With sugar and sweetener(s)’

Tartrazine (E102) | ‘May have an adverse effect on activity and attention in children’

Nutrition, health claims and supplement labelling

Nutrition labelling

You must follow nutrition labelling information rules for all pre-packed products unless both of the following apply:

you’re a small business with under 10 employees and a turnover of less than £1.4 million

you supply either direct to consumers or to local retailers - local means within your county, your neighbouring county, or up to 30 miles from your county boundary

Nutrition and health claims

You have to follow certain rules if you want to make a nutrition claim (for example, low fat) or a health claim (for example, calcium helps maintain normal bones).

You cannot claim or imply that food can treat, prevent or cure any disease or medical condition.

Food supplements, fortified foods and foods for specific nutritional uses

You must follow certain rules if you are manufacturing, selling or importing:

a food supplement

a food fortified with vitamins and minerals

There are also specific rules for ‘parnuts foods’, for example:

formula milk for infants and young children

baby food

meal and total diet replacement for weight control

medical foods

You must tell the Department for Health if you want to sell infant formula or medical food in the UK.

Organic food

If you’re a retailer, you can label products ‘organic’ as long as:

at least 95% of the farm-grown ingredients are organic

you sell direct to customers in your shop

Organic certification

You must be certified by one of the organic control bodies if you produce or prepare organic food and you want to sell or label it as organic.

You can decide which body to register with based on your location and needs.

Once registered you’ll have to:

follow a strict set of guidelines laid down by national and international law

keep thorough and accurate records of production processes

allow annual and random inspections

You’ll also have to follow the rules for labelling organic products.

You can check how food labelling rules are enforced.