As a business owner, one of the many expenses you have to deal with is business rates. These rates are a tax imposed on business properties by the local council to help fund local services. However, what happens when your business property is empty or unoccupied? This is where void business rates come into play.
void business rates are the rates that business owners have to pay on vacant or unoccupied properties. Typically, once a business property becomes empty, the owner is still required to pay business rates until the property is either reoccupied or the rates relief period expires. This can be a significant financial burden for businesses, especially during times of economic downturn or when it takes longer than expected to find a new tenant.
Understanding the ins and outs of void business rates can help you navigate this aspect of running a business property more effectively. Here are a few key points to consider:
1. Rates Relief
Some properties may be eligible for rates relief if they are empty for a certain period of time. This relief period can vary depending on the location and type of property, so it’s important to check with your local council to see if you qualify. In some cases, you may be able to get 100% relief for a certain period, which can help alleviate the financial strain of paying void business rates.
2. Exemptions
Certain types of properties may be exempt from void business rates, such as newly built properties that have not yet been occupied or properties that are undergoing major structural repairs. It’s important to check with your local council to see if your property qualifies for any exemptions, as this can save you a significant amount of money in rates payments.
3. Appealing Rates
If you believe that your void business rates are incorrect or unfairly high, you have the right to appeal to the Valuation Office Agency (VOA). The VOA is responsible for assessing the rateable value of properties and determining the amount of rates that should be paid. If you think there has been a mistake in the assessment of your property, you can appeal to have it reviewed and potentially reduced.
4. Marketing Empty Properties
One effective way to reduce the burden of void business rates is to work on marketing your empty property to potential tenants. The sooner you can find a new occupant for your property, the sooner you can stop paying void business rates. Consider working with a commercial real estate agent or using online listing platforms to help advertise your property to a wider audience.
5. Negotiating with Local Councils
In some cases, local councils may be willing to negotiate with business owners on void business rates payments, especially if the property has been empty for an extended period due to circumstances beyond the owner’s control. It’s worth reaching out to your local council to see if there are any options available to reduce or postpone your rates payments.
6. Planning Ahead
To avoid the financial strain of void business rates in the future, it’s important to plan ahead and have contingency measures in place. Consider setting aside a fund specifically for rates payments on empty properties or factor the cost of void business rates into your overall budget when considering leasing or buying new properties.
Overall, void business rates can be a challenging aspect of running a business property, but with careful planning and proactive measures, you can effectively navigate this issue. By understanding rates relief options, exemptions, and how to appeal rates assessments, you can better manage the financial impact of empty properties on your business. Remember to stay informed about local council policies and regulations regarding void business rates to ensure that you are taking advantage of any available relief options.