Failure to Pay CIL - Public forum - Planning Advisory Service (PAS)
Failure to Pay CIL
Hi All
We are having a bit of an internal battle.
A developer has failed to pay on time and whilst we are all happy about applying a surcharge, our finance team keeps kicking it back to the planning team to chase the payment and raise a new invoice for the surcharge. Planners claim they are not tax collectors and say that once a demand notice has gone out, their role ends and it is over to finance officers to collect the debt.
What makes it worse is that we do not have an officer within the planning team who leads on CIL - if we did, I'm sure this person would liaise with finance officers to get the debt paid.
How does everybody else deal with this?
Tim.
Carol Gore, modified 7 Years ago.
RE: Failure to Pay CIL
Enthusiast Posts: 42 Join Date: 20/10/11 Recent PostsHi Tim,
I am afraid that your finance team may be right.
We raise invoices purely as a way to track and monitor payments (and make sure that they go to the right cost code!).
Under the CIL regulations, payment and enforcement of payment, including surcharges, are dealt with through the CIL regulations, not exchequer debt recovery.
The debt cannot be recovered via the usual debt collection processes as CIL details it own recovery processes (surcharges, stop notices, etc - Part 9 CIL Regs)
I am the lead CIL Officer here, but I don't liaise with finance to get the debt paid, I chase the debtor, and impose surcharges etc.
Maybe you could enquire about getting an admin assistant to help out who could at least assist with raising the invoices, reminding the developers of payment due dates etc? Then informing planning when payment fails to be made so you can take enforcement action?
When payment isnt made, and the developer is clearly not going to pay, who would then enforce a CIL Stop Notice in your team? Maybe they could lead on chasing payments?
The only change we have made here is that invoices can be raised under a 'CIL' recovery option. As our invoices are sent out by the system, it recognises the CIL recovery option, and sends a reminder notice 30 days later as a nudge that the payment will be due in another 30 days. If they have instalements, a auto reminder is sent out after every instalment. That helps with ensuring payments are made, as sometimes developers quite simply forget when they have a 60 day payment gap!
REBECCA STADDON, modified 7 Years ago.
RE: Failure to Pay CIL
Advocate Posts: 103 Join Date: 05/09/13 Recent PostsTim,
I work the same way as Carol. I am the CIL Officer and I am responsible for the chasing of CIL payments and onward enforcement action such as CIL Stop Notices. Our finance department do not get involved with CIL at all, other than to advise me when a payment is received by BACS.
Rebecca
Claire Burton, modified 7 Years ago.
RE: Failure to Pay CIL
New Member Posts: 20 Join Date: 12/08/13 Recent PostsWe work with finance as our invoices are raised in the department but on the corporate finance system which is monitored by finance as well. We liaise on non payments and agree action. If surcharge imposed then we raise the new invoice/demand notice but again liaise with finance to credit the system for the original invoice being replaced by an updated one.
We have a protocol with finance on how and who deals with what elements. Ultimately though if went to court if would be the Planning department who decided on what action to take but would keep finance informed.
Claire
Thank you all
I think there is a very good case for having an officer in the planning team that leads on CIL (and S106 for that matter because nobody leads on that either).
Thankfully we are about to have a CIL audit so maybe this is something that will come out of that.
Cheers!
Tim.
Carol Gore, modified 7 Years ago.
RE: Failure to Pay CIL
Enthusiast Posts: 42 Join Date: 20/10/11 Recent PostsTo be fair, they do go hand in hand.
I lead on the S106 agreements too.