When it comes to running a business, there are many costs to consider One of the costs that business owners often overlook is the business rates on empty commercial property These rates can significantly impact a company’s profitability and should be understood fully to avoid any surprises.
Business rates are taxes that are imposed on non-domestic properties, including commercial buildings The amount of business rates that a property owner must pay is based on the rateable value of the property, which is set by the Valuation Office Agency (VOA) This rateable value is then multiplied by the business rates multiplier, which is set by the government each year.
For occupied commercial properties, business rates are the responsibility of the occupying business However, when a commercial property is empty, the responsibility for paying business rates falls on the owner of the property This can be a significant burden for property owners, especially if they are struggling to find tenants for their space.
The amount of business rates on empty commercial property can vary depending on the location and size of the property In some cases, the rates can be as high as 100% of the normal business rates This can be a huge financial strain on property owners, especially if they are already struggling to cover other costs associated with owning a commercial property.
There are some exemptions and reliefs available to property owners who have empty commercial properties For example, properties with a rateable value of less than £2,900 are exempt from paying business rates on empty properties business rates empty commercial property. Additionally, properties that are empty for a certain period of time may qualify for a temporary exemption from business rates.
Property owners who are struggling to pay the business rates on their empty commercial property may also be able to apply for hardship relief This relief is granted on a case-by-case basis and is intended to help property owners who are facing financial difficulties.
It’s important for property owners to be aware of their obligations when it comes to business rates on empty commercial property Ignoring these obligations can result in fines and penalties from the local authorities Property owners should make sure they are up-to-date on their business rates payments and seek help if they are struggling to meet these obligations.
One way that property owners can avoid paying business rates on empty commercial property is by taking steps to mitigate their liability For example, property owners can consider renting out their empty space on a short-term basis to generate some income and reduce the amount of business rates they are required to pay.
Another option for property owners is to consider appealing the rateable value of their property with the VOA If a property owner believes that the rateable value of their property is incorrect, they can file an appeal to have it reassessed This can potentially result in a lower rateable value and a reduction in the amount of business rates owed.
In conclusion, business rates on empty commercial property can be a significant financial burden for property owners It’s important for property owners to understand their obligations and take steps to mitigate their liability By seeking exemptions, reliefs, and appealing rateable values, property owners can reduce the amount of business rates they are required to pay on their empty commercial property.