One of the challenges that businesses face is paying business rates on empty properties. Empty properties are subject to business rates, even if they are not generating any income. However, there are ways to reduce or avoid paying business rates on empty properties. In this article, we will discuss some tips for avoiding business rates on empty property.
1. Claiming Exemptions or Reliefs
One of the ways to avoid paying business rates on empty property is by claiming exemptions or reliefs. Certain types of properties may be eligible for exemptions or reliefs, such as properties undergoing renovation or properties that are classified as a listed building. It is important to check with the local council to see if the property qualifies for any exemptions or reliefs.
2. Utilizing Temporary Relief
In some cases, businesses may be able to qualify for temporary relief on their business rates for empty property. This could include a short period of up to three months where the property is exempt from business rates. Businesses should check with the local council to see if they qualify for temporary relief.
3. Occupying the Property
One of the most effective ways to avoid paying business rates on empty property is by occupying the property. Even if the business is not fully operational, having employees work in the property for a minimal number of hours per week can help to demonstrate that the property is being used and therefore exempt from business rates. Businesses should consult with their local council to understand the requirements for occupancy.
4. Making Minor Adjustments
Another way to avoid paying business rates on empty property is by making minor adjustments to the property. This could include installing temporary fixtures or equipment that show the property is being actively used. By making these adjustments, businesses can prove to the local council that the property is not completely vacant and should not be subject to business rates.
5. Negotiating with the Local Council
If a business is struggling to afford the business rates on an empty property, they should consider negotiating with the local council. In some cases, councils may be willing to reduce the business rates or come up with a payment plan to help businesses manage the costs. It is important to be proactive and communicate with the council about the situation.
6. Renting Out the Property
Another option for businesses to avoid paying business rates on empty property is by renting out the property. By renting out the property, the business can generate income that can help offset the business rates. This option may not be feasible for all businesses, but it is worth exploring as a way to avoid paying business rates on empty property.
7. Seeking Professional Advice
Lastly, businesses that are struggling to avoid paying business rates on empty property should consider seeking professional advice. A tax advisor or property expert can provide valuable insights and recommendations on how to reduce or avoid paying business rates. They can help businesses navigate the complexities of business rates and find the best solution for their specific situation.
In conclusion, avoiding business rates on empty property can be challenging, but there are ways to minimize the costs. By claiming exemptions or reliefs, utilizing temporary relief, occupying the property, making minor adjustments, negotiating with the local council, renting out the property, and seeking professional advice, businesses can effectively reduce or avoid paying business rates on empty property. It is important for businesses to be proactive and explore all options available to them to avoid unnecessary costs.