Self employed £10,000 let down

jodie973

Any help would be great, in Nov 2018 I contacted my council to make them aware I had moved premises and started working from home. I have a dedicated room specific for my job (beauty). Obviously lockdown hit and once the news came about about the grants I contacted my council for help and asked was I eligible because I don’t pay rates. I contacted them again and only yesterday did I get 3 statement back dated from Nov 18 stating I don’t pay business rates due to my business area been small. Now obviously the deadline has closed, I have contacted my council for help and they don’t see it as there problem, I’ve contacted the government website who passed me onto the VOA page... but that’s out of service. I’m a loss now, shall I just give up but if not is there anyway I would be able to claim this money as it’s not my fault they have taken forever to get my paperwork to me. I just don’t know what else to do really. Like I say any help would be appreciated x x 

Jeremy535897

If your property is not on the rating list at 11 March 2020, the grants for small business are not available. There is some scope for discretion where the omission from the rating list is an error, but the council is saying that the property should not be rated. The basic guidance on what should be rated, and what should be ignored, for using part of a home for business is here:
https://www.gov.uk/introduction-to-business-rates/working-at-home

It looks as if you fall into a bit of a grey area, somewhere between using a room as an office (no rates) and converting a space like a garage into a salon. Even if you persuade the VOA that the room should be rated, it was not on the rating list at 11 March 2020.

There is a discretionary fund available to councils that could give assistance, but it is really aimed at situations like serviced accommodation, where rent was still payable, but the rates were paid by the landlord rather than the occupier. You would realistically have to show that you had significant ongoing fixed costs that needed covering (like rent), but it would seem that your additional costs are negligible, as you already owned or rented the property concerned. See:
https://www.gov.uk/guidance/apply-for-the-coronavirus-local-authority-discretionary-grants-fund

It may well be that your council has already allocated any available funds.

You should be aware that:

• exclusive use of a room for business purposes in a main residence stops capital gains tax main residence relief being available on any gain apportionable to the room when the main residence is sold
• planning permission may have been required, although as the council are aware, presumably this was dealt with
• covenants in the property deeds may restrict the business activities allowed

macman

I don't understand your post. If what you are claiming is business rates relief, how do you expect to qualify for that if you have not paid business rates since  November 2018? If you are working from home, your additional outgoings are minimal.
Your main option for support as self-employed was SEISS and BBL. 

jodie973

macman said:

I don't understand your post. If what you are claiming is business rates relief, how do you expect to qualify for that if you have not paid business rates since  November 2018? If you are working from home, your additional outgoings are minimal.
Your main option for support as self-employed was SEISS and BBL. 

Its called ‘the small business relief grant’ 
Small businesses in England which pay little or no business rates are entitled to a one-off cash grant of £10,000 from their local council. My council contacted me for details on the room, including pictures and measurements which was all given to them. I have a proper business account with my council which is separate to my council tax and the paperwork has all the calculations and then it states ‘property is subject to small business relief rate’ I have had 2 premises previous to this and because of the rateable value of the property or the area of the building I have always qualified for this. My problem is I have all the required documents to be able to apply but because the council haven’t been very forthcoming in providing these documents I am unable to claim. I just didn’t know if there was anyway I could. If not that’s fine, as the saying goes ‘you don’t miss what you don’t have’ but it would help a lot as I enquired from the start. 

My council accepted that the room I use has no connection to the rest of my home so it’s classed as a separate entity to my home. X

Jeremy535897

The actual facts then are that the room in your house is subject to business rates, but you paid none because of small business rate relief. You have rates statements back to November 2018. Was your property on the rating list at 11 March 2020 though?  Guidance to local authorities says:
"Rating List Changes
42. Any changes to the rating list (rateable value or to the hereditament) after the 11 March 2020 including changes which have been backdated to this date should be ignored for the purposes of eligibility.
Small Business Grant Fund and Retail, Hospitality and Leisure Grant Fund guidance 
43. Local Authorities are not required to adjust, pay or recover grants where the rating list is subsequently amended retrospectively to the 11 March 2020.
Rating List Changes Exceptions
44. In cases where it was factually clear to the Local Authority on the 11 March 2020 that the rating list was inaccurate on that date, Local Authorities may withhold the grant and/or award the grant based on their view of who would have been entitled to the grant had the list been accurate.
45. This is entirely at the discretion of the Local Authority and only intended to prevent manifest errors.
46. Where the Local Authority chooses to use this discretion then landlords and managing agents are urged to support the Local Authority in identifying quickly the correct ratepayers."