As a business owner, one of the last things you want to deal with is paying hefty business rates on empty property However, if you own a commercial property that is vacant for an extended period of time, you may find yourself facing significant financial burdens in the form of business rates In this article, we will discuss some strategies to avoid paying business rates on empty property and save your company money.
Receiving a business rate bill for an empty property can be frustrating, especially if you are not generating any income from it In the UK, business rates are taxes that most business owners are required to pay on non-residential properties, including shops, offices, and warehouses The amount you pay is based on the rateable value of your property, which is determined by the Valuation Office Agency (VOA).
However, there are ways to avoid or reduce the amount of business rates you pay on empty property One of the most common ways to do this is to apply for an exemption or relief from the local council There are several types of relief available, including empty property relief, charitable relief, and small business rates relief.
Empty property relief is a type of relief that allows you to claim a full exemption from business rates for a certain period of time In England, most properties are entitled to 100% relief for the first three months they are empty After this initial period, you may still be able to claim relief, but the amount you receive will vary depending on the size and location of your property.
Charitable relief is another option for business owners who own property that is used by a registered charity If your property is being used for charitable purposes, you may be able to claim up to 80% relief on your business rates bill This can help reduce the financial burden of owning an empty property while also supporting a charitable cause.
Small business rates relief is available to businesses that operate from one property with a rateable value of less than £15,000 If you qualify for this relief, you may be able to claim up to 100% relief on your business rates bill avoiding business rates on empty property. This can be a significant cost-saving measure for small businesses struggling to pay their bills.
In addition to these types of relief, there are other strategies you can use to avoid paying business rates on empty property One option is to consider leasing out your property to a temporary tenant By doing this, you can generate income from your property and avoid paying business rates on it This can be a win-win situation for both parties, as the tenant gets a temporary space to operate their business, and you can save money on your rates bill.
Another option is to consider demolishing your property if it is no longer viable for use In some cases, you may be able to claim relief on your business rates bill if your property is demolished and no longer able to be used for commercial purposes This can be a drastic measure, but it may be necessary if your property is in poor condition or no longer generating income.
If you are struggling to pay your business rates on empty property, it is important to communicate with your local council They may be able to offer you a payment plan or other options to help alleviate the financial burden Ignoring the issue will only make it worse, so it is essential to address it as soon as possible.
In conclusion, paying business rates on empty property can be a significant financial burden for business owners However, there are ways to avoid or reduce these costs by applying for relief, leasing out your property, or even demolishing it if necessary By taking proactive steps to address the issue, you can save your company money and avoid unnecessary expenses.