Not all businesses can afford to pay their business rates, which can put them at risk of financial difficulty or even closure.
This is particularly true for small businesses and start-ups that may not have a lot of revenue or a large cash reserve to fall back on.
If a business cannot afford to pay their business rates, they should contact their local council as soon as possible to discuss their situation and see if there are any options for relief or payment plans available.
Business rates are a tax that businesses in the UK have to pay based on the value of their property. The rateable value is an estimation of how much your business property is worth and is used to calculate your business rates.
The rateable value is set by the Valuation Office Agency (VOA) and is reviewed every five years. The VOA uses a variety of factors to determine the rateable value of a property, including its size, location, and type of business that is conducted there.
The amount of business rates you have to pay will depend on your rateable value and the tax band that your property falls into. You can appeal your rateable value if you think it is too high, but you will need to provide evidence to support your claim.
What can you do if you’re having trouble paying your business rates?
Do you have reason to contest your business rate level?
There are a number of reasons why you might want to contest your business rate level in the UK. Perhaps you feel that the level is too high and you can’t afford to pay it. Or maybe you think that the assessment is unfair and doesn’t reflect the true value of your property. Whatever the reason, if you’re thinking of contesting your business rate level, it’s important to be aware of the process and what you need to do in order to give yourself the best chance of success.
First of all, it’s worth taking some time to gather evidence to support your case. This could include things like property valuations, comparative data on similar properties, or evidence of changes in your circumstances that have affected your ability to pay the rates. Once you have this information, you’ll need to submit it as part of your appeal. You can do this online, by post, or in person at your local Valuation Office Agency office.
The next step is for your appeal to be considered by an independent tribunal. This is where things can get a bit technical, so it’s worth getting advice from an expert if you’re unsure about anything. But basically, the tribunal will look at all the evidence and decide whether or not to reduce your business rate level. If they do reduce it, they’ll also decide how much backdated relief you’re entitled to.
So there are a few things to bear in mind if you’re thinking of contesting your business rate level in the UK. But with a bit of preparation and some expert help, you should be able to put forward a strong case and get the result you’re after.
When you can’t afford your business rates
If you can’t afford to pay business rates in the UK, there are a few options available to you. You can negotiate with your local authority to lower your payments, apply for a relief program, or even challenge your assessment. However, it’s important to act quickly, as missing a payment can result in hefty penalties.
If you’re struggling to make ends meet, reach out to your local authority and see what options are available to you. With a little effort, you should be able to find a solution that works for you.
Business rates relief
Businesses in the UK are facing uncertainty due to the current economic climate. Many are struggling to keep up with the costs of running their business, and some are even having to close their doors. One way that the government is helping businesses is by providing business rates relief.
This relief can help businesses with the cost of their property, and it can also help businesses that are located in areas that have been designated as Enterprise Zones. The government is also working to create a more favourable environment for businesses by reducing corporation tax, and by providing funding for research and development.
These measures will help businesses to grow and thrive, and they will ultimately help to create jobs and boost the economy.
Negotiate with your local council
Starting or running a business is never easy. There are numerous challenges and obstacles to overcome, and one of the most daunting is paying business rates. These rates can vary greatly depending on the size and location of your business, and they can quickly become unaffordable. If you find yourself in this situation, it is important to remember that you have options. One of the most effective is to negotiate with your local council.
Many councils are willing to work with businesses that are struggling to pay their rates, and they may be able to offer a payment plan or other relief. By engaging in dialogue with your council, you can increase the chances of finding a solution that works for both parties
Contact a licensed IP
Insolvency is a legal term used when an individual or company is unable to repay their debts. In the UK, there are certain rules and regulations that must be followed in order to declare oneself insolvent. As a result, it is important to seek professional help if you are struggling to repay your debts.
A licensed insolvency practitioner will be able to advise you on the best course of action and help you to navigate the insolvency process. In addition, an insolvency practitioner can help to negotiate with your creditors and reach a repayment plan that is affordable for you. If you are struggling with debt, contact a licensed insolvency practitioner today
Seek professional help when you can’t pay your business rates
Any business owner knows that commercial rates can be a major expense. In fact, for some businesses, rates can be the largest bill they have to pay each month. As a result, it’s not surprising that many businesses struggle to make ends meet and fall behind on their payments. If you find yourself in this situation, it’s important to seek professional help as soon as possible.
A qualified accountant or business advisor can help you to restructure your finances and negotiate a payment plan with your local authority.
They can also offer advice on how to cut costs and increase revenue. Ignoring the problem will only make it worse, so if you’re struggling to pay your business rates, seek professional help as soon as possible.
Additional finance
There are a number of ways to finance a business, from traditional loans, Invoice finance to more creative options such as crowd-funding. However, sometimes it can be difficult to qualify for a loan or secure the necessary funds through other means. One way to get additional financing for your business is to look for sources of venture capital. Venture capitalists are investors who provide funding for fledgling companies in exchange for an equity stake in the business.
They typically invest in businesses that have high growth potential but are too risky for traditional lenders. If you can persuade a venture capitalist to invest in your business, you will not only get the funding you need but also receive valuable advice and mentoring. However, securing venture capital can be a challenge, so it’s important to do your research and prepare a compelling pitch before approaching potential investors.
Company Voluntary Arrangement (CVA)
A company voluntary arrangement (CVA) is a legal agreement between a company and its creditors that allows the company to repay its debts over a period of time. The arrangement is made with the aim of allowing the company to continue operating and avoiding insolvency.
A CVA is typically used as a last resort, after other options such as renegotiation of loans or sale of assets have been exhausted. In order for a CVA to be approved, it must be agreed to by a majority of the company’s creditors. If the CVA is approved, it is legally binding on all creditors, even those who voted against it.
Once the CVA period has ended, the company will be discharged from its debts. CVAs can be an effective way of allowing a struggling company to turn things around, but they are not without risk. There is always the possibility that the company will not be able to meet its obligations under the CVA, in which case it may be forced into insolvency. This is why it is important that any decision to enter into a CVA is made carefully and with professional advice.
Creditors’ Voluntary Liquidation (CVL)
When a company owes money to its creditors and is unable to pay, it may opt for a Creditors’ Voluntary Liquidation (CVL). This is a process whereby the company’s assets are sold off in order to repay its debts. Once the debts have been paid, the company is closed down and wound up.
While the voluntary liquidation process can be an effective way of dealing with debt, it can also be a very risky move. The sale of assets can often raise less money than was owed, meaning that creditors may not receive full payment. Furthermore, the closure of the company can lead to job losses and financial hardship for employees. As a result, a CVL should only be considered as a last resort.
There are a number of different options available to directors, more information on what to do when you can’t afford to pay business rates, please contact our team via our online contact form.
Read more: Business Rates Arrears
Conclusion
If you cannot afford to pay your business rates, there are several actions that you can take. The first step is to contact your local council and explain your situation. They may be able to offer you a payment plan, which will allow you to spread the cost of your rates over a longer period of time.
You can also apply for business rate relief or exemptions, which could reduce or eliminate your rates bill altogether. It’s important to keep up communication with your local council and keep them informed of your financial situation, as they may be more willing to work with you if they see that you are making an effort to pay what you owe.
Finally, if you are really struggling and can’t pay business rates, you may want to seek professional advice from a insolvency practitioner or business support organisation. They may be able to help you come up with a plan to manage your finances and avoid financial difficulty.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.