Large write-off of unpaid business debt

Cardiff Council has voted to write-off "irrecoverable" debts amounting to over £1 million owed to it through taxes on non-domestic properties. Cardiff Council's cabinet voted to authorise the write-off of non-domestic rates debts totalling £1,282,187.71

Income from non-domestic rates – which are taxes paid on non-domestic properties, like shops, offices, pubs and factories – pays for vital council services such as social care and education.

In Wales, non-domestic rates income is collected, paid into a National Pool for Wales and redistributed back to local authorities on a per capita basis.

This year Cardiff Council is responsible for billing and collecting about £195 million worth of non-domestic rates.

A cabinet report on the proposed writing off of the debts said that "there are occasions where collection of the full tax is not possible resulting in the writing off of the outstanding debt."

The report continues: “This course of action is taken only after all possible recovery options have been exhausted.



“These include sending reminders, final notices, and the obtaining of liability orders from the Magistrate’s Court, which then entitles the authority to instigate further action such as bankruptcy/liquidation proceedings or the ability to levy distress.”