Business rates are a hot topic for any business owner, and empty car parking spaces are no exception. With the rise of online shopping and remote working, there has been a significant decrease in foot traffic to traditional brick-and-mortar stores, leading to an increase in empty parking spaces. This has left many business owners wondering about the implications on their business rates. In this article, we will delve into the world of empty car parking spaces business rates and discuss what business owners need to know.
Business rates are a tax paid on non-domestic properties in the UK. This includes commercial properties such as shops, offices, and warehouses. However, what many business owners may not realize is that empty car parking spaces are also subject to business rates. The Valuation Office Agency (VOA) assesses the rateable value of these spaces based on factors such as location, size, and accessibility.
The rateable value of empty car parking spaces can have a significant impact on a business’s overall rates bill. In some cases, business owners may be unaware that they are liable to pay business rates on these spaces, leading to unexpected costs that can put a strain on their finances. It is important for business owners to be proactive in understanding their rateable value and how it is calculated to avoid any surprises.
One common misconception among business owners is that if a car park is empty, they should not have to pay business rates on it. However, this is not the case. Business rates are based on the rateable value of the property, not on its usage. Even if a car park is empty, it still has a rateable value that needs to be paid. This is why it is essential for business owners to accurately assess the rateable value of their empty car parking spaces to ensure they are paying the correct amount.
One way that business owners can reduce their business rates on empty car parking spaces is by appealing the rateable value. The VOA assesses the rateable value of properties every five years, so if a business owner believes that their rateable value is incorrect, they can lodge an appeal. This process involves providing evidence to support why the rateable value should be lower, such as information on footfall, accessibility, and competition. If successful, a lower rateable value will result in lower business rates.
Another option for business owners looking to reduce their business rates on empty car parking spaces is to consider leasing the space to another party. By leasing out the space, the responsibility for paying business rates may shift to the tenant, depending on the terms of the lease agreement. This can be a mutually beneficial arrangement for both parties, as the tenant gains access to parking spaces while the business owner reduces their rates bill.
It is also worth noting that some business rates relief schemes are available for empty properties, including empty property relief and small business rates relief. Empty property relief provides a 100% relief on business rates for the first three months that a property is empty, and 50% relief thereafter for certain properties. Small business rates relief offers a discount on business rates for businesses with a rateable value below a certain threshold. By taking advantage of these relief schemes, business owners can reduce their rates bill and alleviate some of the financial burden of empty car parking spaces.
In conclusion, empty car parking spaces are subject to business rates, and business owners need to be aware of the implications on their rates bill. Understanding the rateable value of these spaces and exploring options for reducing rates, such as appealing the rateable value or leasing the space, can help business owners mitigate the financial impact of empty car parking spaces. By staying informed and proactive, business owners can navigate the world of empty car parking spaces business rates with confidence.