When it comes to running a business, there are numerous costs and expenses to consider. One particularly frustrating expense for business owners is paying business rates on empty property. Fortunately, there are ways to avoid these fees and save your business some much-needed money.
Business rates are taxes that are charged on most non-domestic properties, including shops, offices, warehouses, and factories. These rates are calculated based on the rateable value of the property and can be a significant financial burden, especially for small businesses or those facing financial difficulties.
However, there are a few ways that businesses can avoid paying business rates on empty properties. One common method is to claim an exemption or relief from the local council. Here are some of the most effective strategies for avoiding business rates on empty property:
1. Empty Property Relief
One of the most common ways to avoid paying business rates on empty property is to apply for Empty Property Relief. This relief can be granted for a limited period of time, usually up to three months for commercial properties and six months for industrial properties. To qualify for this relief, the property must be completely empty and not in use for business purposes.
It’s important to note that Empty Property Relief is only available for a limited time, so it’s crucial to keep the local council informed about the status of the property and when it becomes occupied again. Failure to do so could result in hefty fines and penalties.
2. Charitable Relief
If your property is being used for charitable purposes, you may be eligible for Charitable Relief on your business rates. This relief can reduce your rates by up to 80%, depending on the nature of the charitable activities taking place on the property.
To qualify for Charitable Relief, your organization must be registered as a charity with the Charity Commission and use the property primarily for charitable purposes. It’s essential to provide evidence of your charitable status and activities to the local council when applying for this relief.
3. Small Business Rate Relief
Small businesses that occupy a single property with a rateable value of less than £15,000 may be eligible for Small Business Rate Relief. This relief can either reduce your business rates bill or exempt you from paying rates altogether.
To qualify for Small Business Rate Relief, your property must meet certain criteria, such as having a low rateable value and being used primarily for business purposes. You must also occupy the property and not have additional properties that would exceed the threshold for this relief.
4. Class E Exemption
Another way to avoid paying business rates on empty property is to qualify for Class E Exemption. This exemption applies to properties that are undergoing structural repairs or alterations, preventing them from being used for business purposes.
To qualify for Class E Exemption, you must provide evidence to the local council that the property is undergoing renovation work and is not suitable for occupation. This exemption can provide temporary relief from business rates until the property is ready for use again.
5. Short-Term Occupation
If your property is empty but is temporarily occupied for less than six weeks, you may be able to avoid paying business rates during this period. Short-Term Occupation Relief can be granted for short-term uses such as filming, events, or seasonal pop-up shops.
To qualify for Short-Term Occupation Relief, you must inform the local council of the temporary occupation and provide evidence of the activities taking place on the property. This relief can help you avoid paying business rates for short-term uses of your empty property.
In conclusion, there are several ways to avoid paying business rates on empty property. By applying for exemptions, relief, or temporary occupancy arrangements, you can reduce or eliminate this financial burden on your business. It’s essential to keep the local council informed about the status of your property and take advantage of any available relief options to save money and resources for your business.