News Category: Business Startups
Recent surveys have revealed small businesses that missing out on possible rate rebates form the Small Business Rate Relief Scheme, and even paying more property tax than they should be. Currently business rates brings in £2.4bn of revenues for the Treasury. Retailers can save money on their business rates by making a claim for a reduction to their local council. Firms will need to show that there has been a material change in the local area such as the closure of nearby shops that may reduce the appeal to potential shoppers. In addition, local repairs to roads and pavements are also a basis for a material change and therefore a rate rebate.
The average saving is about 10%. Claims are most common where there has been significant disruption to business such as a retailer where access to his customer base has been restricted, through no fault of his own. They have been fewer claims in regards to the economic trading conditions that impacted the nearby appeal of the community. The ability to reduce unwanted expenses is a welcome relief in harsh high street conditions, as small business battle with business debts and late creditor payments. Rebates must be claimed via the Valuation Office Agency, which takes around three months. As the credit crunch bites into the profits of small shops and local businesses, communities have an opportunity to help each other by reducing their costs. Especially as large supermarkets are chain retailer are fighting for nervous and thrifty consumers. This Small Business Rate Relief Scheme is designed to assist small businesses with lower rates in community areas. By September 20087, £200 million of potential rebates remains unclaimed.
Similar to the principle of tax credits, where the onus is on the individual to claim, the onus with the Scheme is to make the business put in a claim. The sensible alternative would be for the government to offer a reduction of business rates via the tax system. A recent survey by Essex County Council found that of the 13,500 firms that had claimed rate relief in 2007, while 19,800 still had not. The recent Local Association poll has shown barely half of the 870,000 firms across the UK have claimed the relief. The Government disputes the scale of the number of firms that have failed or are eligible to register.