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Shopkeeper facing eviction over unpaid rates

16 August 2010

 

The owner of a small food and gift shop in Carlisle is facing eviction because she cannot afford to pay her business rates. The business was started over a year and a half ago and was making more than it is now. With VAT to rise to 20 per cent in January, most shop owners are worried about the effect it will have on their already struggling businesses.

The council commented that they had done everything they could to help the owner, including agreeing a special arrangement over which would have spread the business rates payment over a longer period.

Anyone who fails to pay their business rates on time will be given a reminder, then a final notice. Failure to pay a reminder notice will land the company with a court summons. If the business fails to pay at the reminder or final notice stage then they will lose the right to pay in instalments.

The council say they have undertaken a number of measures to support local businesses during the recent difficult economic times, including working with Business Link to help with other support services.

Nick Sercombe, Director of Surveying Services comments, "Business Rates are a fact of life. They have to be paid and we would never advocate refusing payment. However, there are ways to save money which are within the law and every opportunity should be taken, such as:

•1.       Spreading the payment over a maximum period.

•2.       Ensuring that the rateable value is correct by checking the floor areas, level of assessment and reflecting any abnormalities of the site.

•3.       Making full use of the empty space provisions for under used properties.

•4.       Obtaining reliefs for certain charitable occupations.

•5.       Challenging the level of assessment when a material change of circumstances occurs in the locality.

Ruddle Merz can help with all of the above. For a free Business Rate Review please call 0800 883 03 53 or email enquiries@ruddlemerz.co.uk.

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