Council Tax and business rates recovery procedure policy

Winding up procedures

Where the ratepayer is a limited company the same criteria as for determining whether bankruptcy action is appropriate will be undertaken.

In appropriate cases, a formal request for payment will be sent to the ratepayer advising them of the impending action and the consequences of this action being successful.

No additional costs are incurred at this stage, and the council may agree a payment arrangement with the ratepayer.

Where, after 14 days, the ratepayer has not responded to the formal request or the council is unable to agree arrangements that will discharge the debt; the council will consider whether a petition for the winding up of the company should be issued.

Where a petition is served on the ratepayer this will notify them of a date and time of the hearing in the High Court. The serving of a petition will result in significant costs being incurred.

It is essential that the ratepayer attends this hearing or any adjourned hearing to make representation to the judge as to why the winding up order should not be made.

Where the ratepayer fails to attend this will generally result in the company being wound up. 

Once the company has been wound up the matter will be referred to the Official Receiver for a Liquidator to be appointed.