business rates, court summons, £24k

I'm trying to sort out a problem with business rates (council tax for businesses) - I'm not sure if this is the right forum? Please suggest alternative if it would be better.

Our organisation has been sent a court summons requesting £24,889.75

Our organisation is a voluntary not-for-profit organisation. We occupied a shop for a few weeks as part of a campaign. Since then we've seen the council attempting to contact various people at different addresses demanding payment of council tax / business rates. Finally there is now a court summons with a date set for a hearing.

As a voluntary organisation not attempting to profit from the occupation of the property I'm of the understanding that we'd be exempt from business rates. It says so on the reverse side of the business rates demand.

The question I'd like to ask, if there is anybody knowledgeable of issues who can comment is how we apply for the full exemption without falling foul of some trickery by the local authority. I'm worried that if I phone them up and say the wrong thing they will use their discretionary powers to apply the full charge.

It does note in the rules section that discounts are applied according to discretion of the local authority, meaning they are able to charge or waive charges as they see fit. It does not say how they decide.

Would be great if anybody has any advice on this.

Comments

  • CIS
    CIS Posts: 12,260
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    It does note in the rules section that discounts are applied according to discretion of the local authority, meaning they are able to charge or waive charges as they see fit. It does not say how they decide.

    Unless they've changed the rules then charitable relief was always 80% mandatory and 20% discretionary.

    If you go in to it thinking the council are out to get you then your thinking it through wrongly - the council are only wanting to bill in line with legislation. If you meet the criteria then you will be awarded any reduction in-line with council policy for the discretionary part, they won't vary it just because they feel like it.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • daveyjp
    daveyjp Posts: 12,446
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    Not contacting the Council will see you in Court.

    If you don't own the property let them know who does and they can chase the right person for the debt. You will owe for the few weeks you occupied the property and Councils will apply the correct charge once they know the facts.

    There are currently a lot of temporary occupation loopholes being used by owners to avoid empty rates bills.
  • CIS wrote: »
    Unless they've changed the rules then charitable relief was always 80% mandatory and 20% discretionary.

    If you go in to it thinking the council are out to get you then your thinking it through wrongly - the council are only wanting to bill in line with legislation. If you meet the criteria then you will be awarded any reduction in-line with council policy for the discretionary part, they won't vary it just because they feel like it.

    'discretionary'

    This means 'not guaranteed'
  • For what discretionary reason can they decide not to apply the relief?

    Furthermore, if our not-for-profit organisation isn't constituted precisely within the guidelines we could end up falling foul for that reason.

    If it were entirely clear cut there would be no point in posting asking for advice.
  • Marktheshark
    Marktheshark Posts: 5,841
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    edited 31 October 2015 at 11:25AM
    For what discretionary reason can they decide not to apply the relief?

    Furthermore, if our not-for-profit organisation isn't constituted precisely within the guidelines we could end up falling foul for that reason.

    If it were entirely clear cut there would be no point in posting asking for advice.


    Failure to apply for it is one.
    It is not retrospectively applied like domestic benefits and the occupier can be held liable.
    For business debts it is usually the high court and that means high court bailiff sheriffs with warrants of forced entry to seize assets and freeze bank accounts including directors.

    I suggest you get some very urgent paid for legal advice.
    I do Contracts, all day every day.
  • Robin9
    Robin9 Posts: 12,022
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    As a Registered Charity we have just received our Business Rates and a relief of 80% has been granted.

    Is there a difference between not-for-profit organisations and charities?
    Never pay on an estimated bill
  • antrobus
    antrobus Posts: 17,386 Forumite
    Robin9 wrote: »
    ...Is there a difference between not-for-profit organisations and charities?

    I think so.

    There is mandatory relief of 80% available for charities and amateur sports clubs. If an organisation does not qualify as a charity or a community sports club, but is a not-for-profit it may get discretionary relief, depending on the council.

    See for example;

    http://www.rushmoor.gov.uk/article/3451/Business-rate-relief-for-charities-and-not-for-profit-organisations
    https://www.brent.gov.uk/business/business-rates/how-to-reduce-your-business-rates/
  • AbbieCadabra
    AbbieCadabra Posts: 1,706
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    snip... We occupied a shop for a few weeks as part of a campaign. snip...

    are the Council aware of the period you occupied? is the original bill for the correct dates? even with court fees etc., i can't see how a 'few weeks' of charge is going to rack up to £24k.
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