When it comes to managing a commercial property, one of the biggest challenges is dealing with business rates on empty properties. These rates can add up quickly and become a significant financial burden for property owners. However, there are some strategies that can be employed to help avoid paying business rates on empty property. In this article, we will discuss five ways in which you can reduce or eliminate these costs.
1. Utilize Small Business Rate Relief
One of the first things you can do to avoid paying business rates on empty property is to see if you qualify for Small Business Rate Relief. This relief is available to properties with a rateable value below a certain threshold, which varies depending on the location of the property. If your property qualifies, you may be able to get a discount on your rates or even pay nothing at all.
To apply for Small Business Rate Relief, you will need to contact your local council and provide them with information about your property and your business. They will assess your eligibility and let you know how much relief you can receive. This can be a great way to reduce the financial burden of empty property rates.
2. Apply for Empty Property Relief
Another option for avoiding business rates on empty property is to apply for Empty Property Relief. This relief is available for properties that are empty and undergoing major repairs or structural changes. If you can prove to your local council that your property is undergoing these works, you may be eligible for relief from paying rates.
To apply for Empty Property Relief, you will need to provide detailed information about the works being carried out on your property and their expected completion dates. Your council will assess your application and may grant you relief for a certain period of time. This can provide some much-needed financial relief while your property is empty.
3. Consider Temporary Use
If you are struggling to avoid paying business rates on an empty property, you may want to consider temporarily using the space for another purpose. For example, you could rent out the property for events, pop-up shops, or storage. By generating some income from the property, you may be able to offset the cost of business rates.
While this may not be a long-term solution, it can help to reduce the financial burden of empty property rates. Just be sure to check with your local council to ensure that any temporary use of the property complies with regulations and does not impact your eligibility for relief.
4. Negotiate with your Local Council
In some cases, it may be possible to negotiate with your local council to reduce or eliminate business rates on empty property. If you can provide a compelling reason why you are unable to occupy or rent out the property, your council may be willing to work with you to find a solution.
For example, if your property is in a particularly challenging location or requires significant repairs that are preventing occupancy, your council may be sympathetic to your situation. It never hurts to reach out and explain your circumstances in the hopes of finding a mutually beneficial solution.
5. Challenge the Rateable Value
Finally, if you believe that the rateable value of your property is incorrect, you can challenge it with the Valuation Office Agency. If successful, this could result in a lower rateable value and a reduction in your business rates.
To challenge the rateable value of your property, you will need to provide evidence to support your claim. This could include recent rental values of similar properties in the area, evidence of any structural issues or restrictions on the property, or any other relevant information. While challenging the rateable value can be a lengthy process, it may be worth it in the long run if it results in lower rates.
In conclusion, paying business rates on empty property can be a significant financial burden for property owners. However, by utilizing strategies such as Small Business Rate Relief, Empty Property Relief, temporary use, negotiation with your local council, and challenging the rateable value, you can reduce or eliminate these costs. By being proactive and exploring all available options, you can find ways to avoid paying business rates on empty property and ease the financial strain on your business.
Remember, each property and situation is unique, so it’s important to consult with professionals and your local council to determine the best course of action for your specific circumstances. With careful planning and strategic thinking, you can navigate the challenges of business rates on empty property and find ways to minimize their impact on your bottom line.