Click on the advert above to visit the company web site

Product category: Building Trade Associations and Institutes
News Release from: The Forum of Private Business
Edited by the Buildingtalk Editorial Team on 28 July 2006

Small Business Rates Relief unclaimed

The Forum of Private Business (FPB) is calling on the government to do more to help firms claim Small Business Rates Relief (SBRR), as well as highlighting the unfairness of the present system.

The Forum of Private Business (FPB) is calling on the government to do more to help firms claim Small Business Rates Relief (SBRR), as well as highlighting the unfairness of the present system As the consultation aimed at reducing the administration involved in the scheme comes to an end (Friday 28 July), the FPB says not enough is being done to raise awareness of firms' entitlements and the rate relief criteria should be changed

The FPB's Research Analyst Andy Mowlah said there are a large number of businesses that are missing out.

"A recent survey by the Local Government Association revealed that less than half of the 870,000 small businesses across England that could qualify for the scheme, have so far applied for it." "These businesses are potentially missing out on rate relief of up to £2,500 per year." he added.

Martin Rooney, who runs Focused Nutrition in Stockport, Cheshire said: "More should be done to highlight the qualifying criteria.

We are only very small and have been struggling to make ends meet over the couple of years we have been going.

Some help would have been good." Mr Rooney also said that rent rebates and surveys had been "traditionally an area for potential scams and time wasting activities, so I have not usually been involved." The consultation ends in the same week that a survey by PricewaterhouseCoopers shows that targeted tax relief schemes and incentives are being undermined by ignorance of government support available.

The FPB has recently surveyed 140 firms to find out their thoughts on the Department for Communities and Local Government's proposed changes to SBRR.

They approved of the simplified system but wanted an increase in the level at which firms qualify for SBRR.

Mr Mowlah says the current system doesn't compensate for small firms with larger premises.

"The level at which a business is entitled to Small Business Rates Relief must rise.

There are currently many small firms with similar or even lower turnovers than those entitled to the relief who miss out because they need larger premises due to the nature of their business." "Take for example a second hand car lot.

The owner needs larger premises than, say, an online retailer but could have a considerably smaller turnover.

Under the current system the smaller premises with the greater turnover is entitled to claim relief, but the car dealer is not," he added.

In a response to the Government's proposed amendments to speed up the administration of SBRR the FPB is today (28 July 2006) calling for the threshold for relief to rise from its current level a rateable value of up to £10,000.

Mr Mowlah said that would enable more small businesses to benefit.

"If the system is to be based on the size of the premises and not the turnover of the company the threshold should be put up to allow more firms to apply.

In the meantime the government should be doing more to educate those firms who are currently eligible but haven't realised that they qualify.".

• The Forum of Private Business: contact details and other news
• Email this article to a colleague
• Register for the free Buildingtalk email newsletter
• Buildingtalk Home Page

Search the Pro-Talk network of sites

Put your news on Buildingtalk  |   Advertise  |   Get the free Buildingtalk newsletter  |   Buildingtalk Home
About Buildingtalk  |   Copyright © 2000-2008 Pro-Talk Ltd, UK