When it comes to running a business, there are a myriad of expenses that business owners need to account for. From payroll to inventory, overhead costs can quickly add up. One of the often overlooked expenses that business owners need to be aware of is void business rates.
What are void business rates? Essentially, void business rates are rates that businesses are required to pay on empty commercial properties. These rates are separate from regular business rates, which are levied on occupied properties. The idea behind void business rates is to prevent property owners from leaving their buildings empty for extended periods of time, thereby encouraging them to either rent out the space or sell it to a new owner.
When a property becomes empty, whether due to a business moving out or the property being newly constructed, the local council will typically grant a period of exemption from paying business rates. However, once this exemption period expires, void business rates will come into effect. This can create a significant financial burden for property owners, especially if they were not prepared for this additional expense.
There are a few key things that business owners need to know about void business rates. First and foremost, it is important to be aware of the exemption period that the local council grants for empty properties. This period can vary depending on the location and type of property, so it is crucial to check with the council to determine how long the exemption period will last.
Once the exemption period has expired, property owners will need to start paying void business rates. These rates are typically calculated based on the rateable value of the property, which is determined by the Valuation Office Agency. The rates can vary depending on the size and location of the property, so it is important to get an accurate assessment of the rateable value to ensure that you are not overpaying on void business rates.
It is also worth noting that there are certain circumstances in which property owners may be able to apply for relief on void business rates. For example, if the property is undergoing major renovations or repairs, or if there are exceptional circumstances that have led to the property remaining empty, then the local council may consider granting relief on void business rates. However, approval for relief is not guaranteed, and property owners will need to provide evidence to support their case.
For businesses that are planning on moving to a new location or have recently acquired a property that is currently empty, it is important to factor in void business rates into the budgeting process. Failing to account for this expense could result in financial difficulties down the line. By being proactive and understanding the implications of void business rates, business owners can better prepare for the additional cost and minimize the impact on their bottom line.
In conclusion, void business rates are an important consideration for property owners who have empty commercial properties. Understanding the exemption period, calculating the rateable value, and exploring options for relief are all key steps in managing void business rates effectively. By staying informed and planning ahead, property owners can navigate the complexities of void business rates and ensure that they are not caught off guard by this additional expense.
Overall, being aware of void business rates and taking proactive steps to address them can help business owners avoid unnecessary financial strain and ensure that their properties remain profitable.