When it comes to running a successful business, property expenses can quickly add up. One major cost that business owners often overlook is business rates on empty property. If you own a commercial property that is not being used for business purposes, you may still be responsible for paying business rates on that property. However, there are some strategies you can employ to avoid these costly rates and keep more money in your pocket. In this article, we will discuss some of the best ways to avoid business rates on empty property.
One of the most effective ways to avoid business rates on empty property is to make sure the property qualifies for an exemption. In the UK, certain types of properties are exempt from business rates, including agricultural land and buildings, buildings used for storage, and properties that are being renovated. If your empty property falls into one of these exempt categories, you may not have to pay business rates at all.
If your property does not qualify for an exemption, there are still some steps you can take to reduce or eliminate your business rates liability. One option is to apply for small business rate relief. This scheme is designed to help small business owners who are struggling to pay their business rates. If your property has a rateable value below a certain threshold, you may be eligible for relief that could significantly reduce your rates bill.
Another strategy for avoiding business rates on empty property is to actively market the property for rent or sale. In many cases, if you can demonstrate that you are actively trying to find a tenant or buyer for the property, you may be able to claim an exemption from business rates for a limited amount of time. This can give you some breathing room while you search for a new occupant for the property.
If you are unable to find a tenant or buyer for your property, you may still be able to avoid business rates by demolishing the property. In some cases, if a property is not fit for occupation or is due to be demolished, the owner may not have to pay business rates on that property. This can be a drastic step, but it may be worth considering if you are struggling to find a use for the property.
It is also important to keep in mind that business rates on empty property are charged at a higher rate than rates on occupied property. This can make it even more crucial to find ways to avoid paying these rates. One option is to consider temporary uses for the property, such as hosting pop-up shops or events. By generating some income from the property, you may be able to offset the cost of the business rates and reduce your overall liability.
Finally, if you are still struggling to avoid business rates on empty property, it may be worth seeking professional advice. A qualified surveyor or property consultant may be able to help you identify additional exemptions or relief schemes that you may be eligible for. They can also provide guidance on the best strategies for reducing your business rates liability and keeping your property expenses as low as possible.
In conclusion, business rates on empty property can be a significant expense for business owners. However, by taking proactive steps and exploring all of your options, you may be able to avoid or reduce these rates and save yourself some money. Whether you qualify for an exemption, apply for relief, market the property, demolish the property, explore temporary uses, or seek professional advice, there are plenty of strategies you can employ to keep your business rates as low as possible. By staying informed and taking action, you can protect your bottom line and keep your property expenses under control.