Refused Small Business Relief Fund as 'on paper' my business occupies two 'rateable' units.

alikenny

I hope someone on here can be of some help to me. I run a teeny business from a small workshop. Over a year ago I took over a storage space adjoining my workshop. The adjoining wall has been knocked through so essentially it is now one space (I pay £100 a month for the said storage space). However as on paper I occupy two units (units 6 and 7 in the building) I do not qualify for the small business relief fund. As I can only be exempt from rates for one unit, I do not pay anything on unit 7 (the larger space) but I do pay rates on the former 'cupboard'. My landlord is happy to help in any way he can (as, after all, I am behind 3 months in rent - so he is also financially suffering). Does anyone have any ideas how we can get around this? It probably should have been changed to one unit ages ago with the valuation office agency but I think its unlikely to be able to make these changes retrospectively. Any ideas? I'm at my wits end. Thank you

Jeremy535897

I take it that both properties each have a rateable value in excess of £2,899? Or over £20,000 for both?
You say "over a year ago". What properties did you occupy at 11 March 2020, or rather were on the rating list for? The reason I ask is that you still get SBRR for a year after having 2 properties on the rating list. See https://www.gov.uk/apply-for-business-rate-relief/small-business-rate-relief . I think this would mean the main property would still qualify for the grant, but it may be you were no longer entitled at 11 March 2020, hence my questions above.

I suspect the two properties should be one from a rating point of view. See 
https://www.gov.uk/guidance/rating-manual-section-3-valuation-principles/part-1-hereditament

Presumably you have tried pointing this out?

alikenny

Thanks, Jeremy. The rateable value of the unit we pay rates on is 1500. It is after all tiny.

I will discuss with my landlord about changing them for business rates purposes, and he'll no doubt be amenable. Will look at your links.

Airwolf1

If you go through the Check, Challenge Appeal process with the Valuation Office, this should be dealt with at the Check stage. Submit a plan with measurements and tell them that the 2 properties are interconnected and you would like them to be one entry in the rating list from "enter date here". The Valuation Office should action this and notify you and the local authority once done and also, when the council send you a revised rates bill, you can then contact them and reapply for SBRR assuming your rateable value doesn't exceed the threshold. It would help if you told us your rateable values as well.

Jeremy535897

You mention a landlord. I assume the landlord is not the one on the rating list? If you pay a rates inclusive rent, that is a different matter.

The guidance to LAs on the grant is here. Note paragraphs 32 to 42.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/881040/business_support_grants-local_authorities_guidance.pdf

If all else fails, and you aren't claiming SEISS, there is the possibility of a discretionary top up grant. See
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/885011/local-authority-discretionary-grants-fund-guidance-local-government.pdf

Airwolf1

If it isn't serviced offices et al, the business rates accounts should be in the occupier's name anyway, even if the landlord pays the rates.

Jeremy535897

Airwolf1 said:

If it isn't serviced offices et al, the business rates accounts should be in the occupier's name anyway, even if the landlord pays the rates.

Indeed, but it makes claiming the grant a whole lot harder, hence the reference to paragraphs 32 to 42 of the LA guidance.

alikenny

The business rates account is indeed in my name. I've just pored over the guidance for local autorities that Jeremy linked to. When I spoke to the man at the council, he said that because I have more tnan one unit that that is what is exempting me ftom getting the grant, but I can't yet find anything mentioning that.

alikenny

Oops, please forgive the multiple typos.

Jeremy535897

alikenny said:

The business rates account is indeed in my name. I've just pored over the guidance for local autorities that Jeremy linked to. When I spoke to the man at the council, he said that because I have more tnan one unit that that is what is exempting me ftom getting the grant, but I can't yet find anything mentioning that.

Originally you couldn't get a small business grant on more than one hereditament, but that changed, although how useful that change was is not clear when you only get SBRR on one hereditament (maybe it covers the situation where you get RRR on a second hereditament). In any event, that is not the same as saying you can't get a grant at all if you have 2 hereditaments. See paragraph 20 of the guidance:
"20. Eligible recipients will be entitled to receive one grant per hereditament from the earlier of the date payment of the grant by the Local Authority or 1st April 2020."

You would get no grant on the second as it would not qualify for SBRR. The only reason I can think that you won't qualify is if the combined rateable value of the 2 properties was £20,000 (£28,000 in London) or more and you leased the second before 12 March 2019.

lincroft1710

When the VOA merge the properties for rating purposes (which is the correct thing to do) they may be able to backdate the effective date of the merger (Effective dates on commercial property are not my strong point, the rules have changed over the years, so you would have to check these in the Rating Manual). The problem may be the timescale which the VOA are able to do this