Small business grant for non rate payers?

vinnycap

Hello

I co-own and operate the cafe business within a health club in Poole, Dorset. The cafe is open to the public, is approximately 2,000 square feet in size and has seating for up to 80 customers, with eat-in or takeaway options. We have been operating for just over 3 years and currently employ two full-time and one part-time members of staff. We use local suppliers and wholesalers as much as possible. We pay rent and utilities to the club on a monthly basis but do not pay business rates or claim business rate relief for the building as the health club operator has the liability for business rates. The business is registered for VAT and submits quarterly VAT returns. The business’ trading status is a partnership and we submit annual partnership returns to HMRC. We also hold employer’s and public liability insurance for our premises as an entirely separate entity to the gym. We have had to close the business completely due to COVID-19 on Friday 20 March (as we cannot access the premises whilst the building is closed) and presently the business is not trading in any form. I have lost over £10,000 of trade just in March and cannot afford to pay my suppliers, staff, vat, rent or any other bills. 

I understand that the government is providing support to small businesses such as mine by way of business grants, although this is only if you pay business rates or have been registered for business rate relief.

I am curious to know how many other businesses are in this situation, and what can be done about it?

Jeremy535897

The person liable for business rates is the occupier, but I suspect in your case the whole property is treated as occupied by the health club operator. Presumably they will get the grant. You might qualify for the self emplyed income support scheme:
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

vinnycap

Thanks Jeremy, I will qualify for self employed help but that will only amount to a few hundred pounds for me personally. My cafe is likely to close for good due to the losses I have suffered. I hope other small businesses in this position make their position known. Anyone who rents/sub lets a space inside another business, concessions, etc.

Jeremy535897

I think there will be a lot of businesses who should qualify because they are the ratepayer, but won't. Councils can be very slow to deal with changes to ratings list, and adding new properties.

vinnycap

Hi Jeremy, as it's easter weekend the government business support helpline is unavailable and I have had no luck contacting my local council this week. My accountant suggested that if my landlord (health club operator) showed that my monthly rent contributes to a proportion of the building running costs including their rates bill then this may count towards my eligibility for the grant. What do you think? I have heard of a local arena business park having the same problem with their tenants because their tenants pay a monthly sum inclusive of rates.

Jeremy535897

I fear that this will not help, because the grant is paid to the person on the rating list at 11 March 2020.The details of the scheme are here:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/878807/business_support_grants-local_authorities_guidance.pdf
Read paragraphs 32 to 42 in particular.
If the health club operator receives a grant, you could always appeal to their better nature and ask for a share. It depends on their conscience, particularly if they really should have got the rates separated out.

vinnycap

Unfortunately the health club is too large and would not qualify for either grant and would unlikely want to share any money out to me. This is a huge hole in the grant scheme, because I won't get anything personally or for my closed down business. Anyone else reading this in the same position please sign the petition on the government website.

supersherl

Hi - I own a limited company with rented office space and have had an email to say I will qualify for small business grant of £10k. My staff costs (without paying myself) come to more than £10k a month including £2k of rent. My question is, if I receive the money and then hand my notice in at the office (we can work from home in short term), would there be a claw back of the £10k? It seems counterproductive to get a grant if I have to pay most of it just in rent to my landlord over the next few months? 
Any help appreciated as I haven't found any clear info.
Best wishes. 

Jeremy535897

From FAQs for local authorities:
21. If a hereditament does not resume trading after the shutdown, is it still eligible for a cash grant? Yes, as long as the business is not in liquidation or dissolved when the grant is awarded, and otherwise meets all applicable conditions (including not being an undertaking in distress on 21 December 2019 – see Q73), it is eligible for a grant.

Hermann

supersherl said:

Hi - I own a limited company with rented office space and have had an email to say I will qualify for small business grant of £10k. My staff costs (without paying myself) come to more than £10k a month including £2k of rent. My question is, if I receive the money and then hand my notice in at the office (we can work from home in short term), would there be a claw back of the £10k? It seems counterproductive to get a grant if I have to pay most of it just in rent to my landlord over the next few months? 
Any help appreciated as I haven't found any clear info.
Best wishes. 

Your staff costs, including your own, can be covered by the job retention scheme without using any of the £10k grant.

supersherl

Hermann said:

supersherl said:

Hi - I own a limited company with rented office space and have had an email to say I will qualify for small business grant of £10k. My staff costs (without paying myself) come to more than £10k a month including £2k of rent. My question is, if I receive the money and then hand my notice in at the office (we can work from home in short term), would there be a claw back of the £10k? It seems counterproductive to get a grant if I have to pay most of it just in rent to my landlord over the next few months? 
Any help appreciated as I haven't found any clear info.
Best wishes. 

Your staff costs, including your own, can be covered by the job retention scheme without using any of the £10k grant.

Thanks Herman, but do you have any knowledge of the rental situation and whether I need to be in the property for a period of time for this grant to be given? I know of people who have given notice on the office property that has allowed them to claim a grant but im not sure if that is something you can do? Thanks in advance.