Agenda item

To receive a presentation from the Head of Revenues, Benefits, Corporate Recovery, Corporate Fraud, Welfare and Leisure on how Council Tax & Business Rates are collected and to receive a verbal update on the Autumn Statement changes.

The Group received, and NOTED, a presentation * from the Head of Revenues, Benefits, Corporate Recovery, Corporate Fraud, Welfare & Leisure explained how Council Tax and Business rates were collected. The Group had requested at their last meeting that they receive further information regarding how Council Tax and Business Rates were collected.

The following was highlighted within the presentation:

Council Tax Billing & Recovery:

•      Gross Debt £ 86,733,094 million

•      Net Collectable  Debt £ 74,560, £170 million

•      Total Dwellings 38,549k

•      Reliefs/Discounts/Disregards Overall Total £ 12,172,924 million

•      Council Tax Reduction £ 4,881,827million (part of the £12.9m)

•      Council Tax was calculated by bands A, B, C,D,E,F,G & H properties were allocated those by the Valuation Office Agency.

Business Rates (also known as National Non Domestic Rates (NDR)):

•      Gross Debt                            £ 28,654,229m

•      Net Collectable  Debt          £ 18,066,623m

•      Reliefs / Exemptions           £ 10,587,606m         

•      Total Hereditaments            3553

•      Rateable values are calculated by the Valuation Office Agency ( part of HMRC)

•      Some reliefs were fully funded under Section 31

•      Income and costs are monitored by Government via complex returns, NDR1 & NDR3

•      Income  and costs were shared by

•      Government              50%

•      Billing Authority        40%

•      County Council         9%

•      Fire Authority            1%

How is collection calculated?:

The formulae as shown below applies to Council Tax and Business Rates (NDR Example):

Net Collectable Debit          £ 18,066,623 (A)

Net Payments                       £  11,987,569 (B)

(B) divided by (A)                 66.35%

Collection results were reported to the Government via a complex return at the end of the financial year (QRC4).

Collection was monitored monthly and compared to the previous years %.                     

Collection Methods:

•      Annual Bill / Adjustments Notices / New Bills

(10 or 12 statutory instalments or months as let with the financial year) 

•      Reminders

•      Summons

•      Court Order ( Liability Order)  - when granted further powers were granted by law, these were:

•      Attachment of Earnings

•      Attachment to Members allowances

•      Special arrangements

•      Enforcement Agents

•      Charging Orders

•      Bankruptcy

•      Committal

•      Business rates allowed for a County Court application rather than applying for  a Liability Order at the Magistrates Court  

•      Council Tax (SI 613)

•      Business Rates (SI 1058) 

Discussion took place regarding:

·         When somebody builds an extension it was not the case that the banding of the property was automatically reassessed. This would usually happen when the property was either sold or leased. A banding may not necessarily change just because an improvement had been made to a property.

·         Residents had the option of paying 12 month’s worth of Council Tax over 10 months.

·         Mid Devon District Council had the highest collection rates in Devon and Somerset and nationally were in the top 5%.

·         The last quarter of each year was the busiest for the service area as not only were they trying to collect outstanding monies for the year but also recalculating amounts due for the coming year.

·         The service area worked hard to communicate with people who were suffering financial hardship and often made referrals to support agencies that could help in a number of different ways. It was important that Council Tax payers contacted the Council as soon as possible if they were beginning to experience problems regarding repayment.

Note: * Presentation previously circulated.