Collecting business rates is one of those activities that in theory should be straightforward but in practice creates a headache for local authorities.
Councils have to know exactly which properties are subject to business rates, who should be paying and how much they should pay. Any gaps leave scope for fraud, error and less income for the authority.
As central government cuts its financial support for local authorities and they become more dependent on local sources of revenue, it is more important than ever that they get on top of the situation. Working more like a private company is becoming increasingly the way forward. Improving cash flow as well as maintaining good collection rates will improve authorities funding of front line services moving forward.
Identification challenges
We feel that local authorities face a number of challenges in doing so, such as -
: identifying the occupancy status of a non-domestic property
: identifying what it is being used for
: identifying the correct occupants for billing and those directors that are liable
: Ensuring that all properties have been valued for rates collection
:Understanding if the occupants “Can Pay”, Won’t Pay” or “Can’t Pay”
Our belief is that effective use of the right data to which it can access is key.
This usually comes from a range of sources in formats that can be difficult to match, or even to pick out as having a relevance to the operation. Many councils do not have the in-house resources to carry out the task effectively.
CAF Solutions provide reports for the entire NDR caseload, which are monitored for changes on a daily basis. The reports sit behind a dashboard which quickly and easily shows what debts should be paid, what debts are at risk and what debts can’t be paid. This allows managers to use their resources in a far more productive way, and finance directors to plan the use of funds most effectively.
Amongst other essential information, each report will clearly show a score which will, at a glance show you if this debt is collectable. The report will show the last sequence of activities showing you whether the occupants are trading well or falling into trouble. A list of all directors will be listed and a report of every other company they are directors of will also be attached to the main report, with scores.
Essentially you will have, at a glance, all the information you would require to make critical business decisions for collection and support for business rates debts.
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