Advice needed - Business rates

Hoping someone on here is a bit more clued up about this sort of lark than I am. Sitting comfortably? Then I'll begin.

Once upon a time, a small business owner moved into a set of offices in town. On signing the contract, said small business owner was delighted to read that his rent was "fully inclusive of rent, business rates, service charge ...".

Some time later, our plucky small business owner receives a letter from the local council, stating that he owes them business rates for the property. Helpfully, the local council have already got a nice bailiff involved, which was far easier than say, typing the business owner's company name into Google and sending a bill to the first address that popped up.

The small business owner duly paid the bill ( hey, there's a bailiff monster around - you gotta ) and contacted the council to moan about their lack of due diligence, the fact bailiffs were involved, and the fact that according to his contract, he was already paying business rates through monies paid to the landlord.

The council was unrepentant, saying that the business owner has to chase his landlord for the money and that they always invoice the occupier, irrespective of any agreement between landlord and tenant.

So questions for the more legally aware of SaintsWeb.

a) Who is actually liable for this?

b) What is the best option to retrieve the money?

c) Should I trot down to the town hall and do a dirty protest? ( kebab and big poo in staff toilets )

Unusual for business rates to be included in rental agreements, but if it is, then it is. Best get some legal advice on the contract you signed. On another note, there is relief on rates for small businesses at the moment (something that nasty Chancellor proposed i believe )

Hoping someone on here is a bit more clued up about this sort of lark than I am. Sitting comfortably? Then I'll begin.

 

Once upon a time, a small business owner moved into a set of offices in town. On signing the contract, said small business owner was delighted to read that his rent was "fully inclusive of rent, business rates, service charge ...".

 

Some time later, our plucky small business owner receives a letter from the local council, stating that he owes them business rates for the property. Helpfully, the local council have already got a nice bailiff involved, which was far easier than say, typing the business owner's company name into Google and sending a bill to the first address that popped up.

 

The small business owner duly paid the bill ( hey, there's a bailiff monster around - you gotta ) and contacted the council to moan about their lack of due diligence, the fact bailiffs were involved, and the fact that according to his contract, he was already paying business rates through monies paid to the landlord.

 

The council was unrepentant, saying that the business owner has to chase his landlord for the money and that they always invoice the occupier, irrespective of any agreement between landlord and tenant.

 

So questions for the more legally aware of SaintsWeb.

 

a) Who is actually liable for this?

b) What is the best option to retrieve the money?

c) Should I trot down to the town hall and do a dirty protest? ( kebab and big poo in staff toilets )

a) Business owner is

b) Talk the owners agent or see a solicitor

c) No

HTH

Unusual for business rates to be included in rental agreements, but if it is, then it is. Best get some legal advice on the contract you signed. On another note, there is relief on rates for small businesses at the moment (something that nasty Chancellor proposed i believe )

Yeah, the one helpful person I spoke to at the Council said that rates were cut.

Weirdly enough, landlord has actually been most helpful so far.

Just find it amazing that it could have all got so far without someone just looking up my company. Registered address is my home address and all that.

*sigh*

pap - first rule of business is never to assume that any statutory body or public authority will make any kind of effort to resolve any issue. They won't, unless it benefits them, end of!

Even if something is supposed to be paid for by your landlord, ask them HOW they are doing that, and also make contact with the authority they're supposed to be paying, to make sure everything is sorted at both ends, because otherwise your business suffers.

As for the liability for rates, to quote Southampton City Council:

Please be aware that where a private agreement may exist it is not binding on the authority and therefore the occupier would continue to remain liable for payment of business rates.

 

If you are the occupier and have entered into a private agreement with your landlord, you will remain liable for payment, if the landlord fails to make payment on your behalf. All such bills and recovery letters will be issued in your name and not the landlords.

So, I'm afraid that is quite clear.

So, finally, assuming your lease is legally sound, it becomes a breach of the terms of your lease and you should approach them to discuss it, and if the worst case happened, you would have to get legal advice and pursue it through official channels.

I realise you've spoken to the landlord and it's good that they've been helpful (probably because they know they're liable), but just thought it was worth clarifying.

But back to my first point, NEVER assume anyone else has done what they say they will do, especially if it could affect your business. ALWAYS check and chase.

 

a) Who is actually liable for this?

b) What is the best option to retrieve the money?

c) Should I trot down to the town hall and do a dirty protest? ( kebab and big poo in staff toilets )

Answers:

a) (i) The occupier is liable to the Council.

(ii) As between the occupier and the landlord, the landlord is responsible.

b) The occupier should ask the landlord to reimburse the expenditure, which he is legally bound to do. If he doesn't reimburse, other options will need to be looked at.

c)

Minty - that is really good advice. Thanks for that.

FWIW, think the landlord will either come good with the paperwork or resolve the issue through a cheque. They've always been sound as a pound, and they wouldn't want the bother. Plus I've got a couple of mates who are still in the building and they haven't paid a penny for rates - they've been there longer than me too.

The amount of money isn't an issue really - only about £265 - but it's crap timing for Chrimbo and I'm just bloody incensed with the council for not performing a very simple check that anyone in business would be able to do.

But you're right mate. Always do everything yourself. It's the only way to be sure.

Demands for rates must have been sent out previously. Do you know where they have been sent? Otherwise, demands are usually addressed to 'the Occupier' and are delivered to the property. I don't believe that small business rate relief is automatically applied. You, or whoever is entitled to this, might have to appply for it.

The demands did go to the office, but as far as I was concerned, I'd settled all accounts ( rent and broadband, basically ) and had no reason to go back.

Still, another of life's lessons learned. Little bit poorer, little bit wiser and managed to get the bailiff issue sorted today, so it's not all bad.

Pap,

If the Rateable Value is below £6000 and you don't occupy any other property, you're probably liable for 100% relief. See link http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1080355862&r.lc=en&furlname=estimatemyrates&furlparam=estimatemyrates&ref=http%3A//www.voa.gov.uk/&domain=www.businesslink.gov.uk