As a business owner, there are a plethora of costs that come with running your own operation. From paying rent and utilities to purchasing inventory and marketing your products or services, the financial burden can be overwhelming at times. One cost that often gets overlooked until it becomes a major issue is void business rates.
So, what exactly are void business rates and why should you care? void business rates, also known as empty property rates, are taxes that commercial property owners are required to pay when their premises are empty or unoccupied. The purpose of these rates is to discourage property owners from leaving their properties vacant for extended periods of time, as empty buildings can have a negative impact on local communities and economies.
void business rates are calculated based on the rateable value of the property in question. This rateable value is determined by the Valuation Office Agency (VOA) and is used to calculate how much the property owner will need to pay in business rates each year. When a property becomes vacant, the occupier is no longer liable for paying the business rates. However, if the property remains empty, the burden of paying the rates falls back on the property owner.
The issue of void business rates can be particularly problematic for small business owners who may be unable to find tenants or buyers for their properties in a timely manner. In some cases, business owners may find themselves facing significant financial strain as a result of having to pay these rates on top of other operational costs.
There are, however, some exemptions and reliefs available to help alleviate the financial burden of void business rates. For example, properties that are empty for a short period of time may be eligible for a temporary exemption from paying business rates. Additionally, properties that are undergoing major refurbishment or renovation may qualify for a relief known as “Section 44a relief” which provides a 50% discount on business rates for up to 12 months.
It’s important for business owners to be aware of their rights and options when it comes to void business rates. If you find yourself in a situation where your property is empty and you are struggling to pay the rates, it may be worth seeking professional advice from a chartered surveyor or property advisor. These professionals can help you navigate the complex world of business rates and ensure that you are not paying more than you need to.
In addition to seeking professional advice, there are a few proactive steps that business owners can take to mitigate the impact of void business rates. For example, marketing your property effectively to attract potential tenants or buyers can help you avoid lengthy periods of vacancy. Similarly, keeping your property well-maintained and in good condition can make it more appealing to potential occupants.
Ultimately, void business rates can present a significant challenge for business owners, but with the right knowledge and support, it is possible to navigate this issue successfully. By staying informed about your rights and options, seeking professional advice when needed, and taking proactive steps to minimize vacancy periods, you can effectively manage the financial burden of void business rates.
In conclusion, void business rates are a reality that many business owners must contend with at some point. Understanding how these rates are calculated, knowing your rights and options, and taking proactive steps to minimize vacancy periods can help you navigate this issue successfully. By staying informed and seeking professional advice when needed, you can ensure that void business rates do not become a crippling financial burden on your business.