Business rate HELP ASAP

[Msaf]

Hi, I’m looking for some advice.

I have a pitch in Blackpool for my catering van. I’ve received a bill for business rates, however this is the first time I have got this. I’ve had this pitch for a few years before any never paid any rates. There is no brick & mortar building it is just the land.

Although I think I will be eligible for small business rate relief, I’d like to get rid of it completely instead of just filling rate relief each year.

The reason I got this was because I enquired if I was eligible for the small business grant. However they said I’m not eligible as I don’t pay rates.

I do not rent the land, I instead pay a licence fee to the council every year.


How would I go about this?

 

[Mr D]

Getting off the rates????

Good luck with that. A pallet of fine wine to the town hall may help. Or speak to the business rates department.

Sure you do not want to just have zero rates bill each year? It's no additional cost to you but could be worth a grant if they are ever given out.

 

[Msaf]

Hi I’d rather not have a zero rate bill as my rateable value can change. It is currently based in my licence fee. If this licence fee ever increases over 12k, I’d be stuck with paying the rates. It is currently just under 12k.

Tbh though I don’t think I should I be paying. I do not have a property, no tenancy, no tenancy agreement no lease. No bill. I am self sufficient, (generator). No waste bin nothing. At the end of the day I drive my catering trailer away.

if I can’t do anything about this, my business turnover would not be sufficient for me to pay rates as well so I risk losing my livelihood.

 

[Mr D]

Wow, a business that should be highly profitable that would not be viable with rates.

Perhaps besides dealing with the council a new look at your business pricing and costs is needed.
You could be missing out considerably.

 

[Msaf]

we only work May,June,July,August.

They are the only 4 months allowed on the licence (Seasonal licence for ice cream) (only ice cream & ice lollies)

the licence fee itself is over 10k

include costs, wages, insurance, stock and were left with enough to survive the remaining months.

add to that around 5k extra per year for rates, we ain’t left with much

 

[Mr D]

we only work May,June,July,August.

They are the only 4 months allowed on the licence (Seasonal licence for ice cream) (only ice cream & ice lollies)

the licence fee itself is over 10k

include costs, wages, insurance, stock and were left with enough to survive the remaining months.

add to that around 5k extra per year for rates, we ain’t left with much

The joy of seasonal work. And this year is most definitely not normal.

Still, at least its Blackpool. Could be worse, Morecombe.

 

[Airwolf1]

we only work May,June,July,August.

They are the only 4 months allowed on the licence (Seasonal licence for ice cream) (only ice cream & ice lollies)

the licence fee itself is over 10k

include costs, wages, insurance, stock and were left with enough to survive the remaining months.

add to that around 5k extra per year for rates, we ain’t left with much

If you lease the pitch, I assume you lease it for the 4 months of the year you operate? In that case, the council would be liable for the other 8 months of the year. You would qualify for the Small Business Rates Relief and I believe from £12k - £15k you pay on a sliding scale. Another option is using the Valuation Office's Check Challenge and Appeal process and go down the route of your business being too transient maybe, being there for only 4 out of 12 months. Different things to look at depending on your answers.

 

[Msaf]

Hi thanks for replys. The agreement is that I am allowed to trade for the 4 months, however it was for 8 years with a remaking 6 years left (subject to an increase in licence fee after 3rd And 6th year using RPI index).

I am not too sure if it a lease (the word lease is not mention in the agreement. It states it’s a licence and I am a licencee.

I do qualify for SBRR. BUT....I am worried that after the 3rd or 6th year when the Licence fee is increased...I may be above the threshold for SBRR.

I do have a bit more information...I contact the valuation office who have said that I requested that my pitch be rated for business rates back in April. (They suspect I did this so I can claim the Covid grant for 10k). However I do not recall doing this. However, I did indeed email the council and ask if any pitch had a rateable value (I didn’t know what this was back then) and received a reply that it did not so I am not eligible for the grant. I left this as is and thought no more of it.

 

[kulture]

Licence fees have nothing to do with rateable values. Eligibility to relief depends on the rateable value. The rateable value only changes when there is a national revaluation. The rates relief scheme may change and might stop being 100% in order to pay back some of the grant received. But this is separate from the licence fee.

 

[Msaf]

Hi thanks for clearing that up. Currently my licence fee is the same as my rateable value. So I assumed that if my licence fee changes my rateable value may change.

 

[ethical PR]

Bottom line if you are liable, then you are liable, if you want to continue to operate as a business you will need to register and as you say then claim relief if you are eligible.

Business rates – are the way businesses contribute towards the cost of local services; maintaining roads, marketing the area, street lighting, cleaning streets. It doesn't cover things like rubbish collection for businesses which you pay for separately.

The money, together with revenue from council tax payers, revenue support grants provided by the Government and certain other sums, is used to pay for services provided by the council.

The council collects business rates on behalf of the Government, who set the multiplier each year. Your rate is determined by the rateable value of your property and the business rate multiplier.

The rate you pay is based on the rateable value of your property provided to us by the Valuation Office Agency (VOA).