£200m rebates going begging

By HELEN LOVELESS, MAIL ON SUNDAY ENTERPRISE EDITOR
Updated:

 

Owners of small businesses are being urged to claim millions of pounds of tax relief on their office buildings.

Tim Rhodes

Tax relief: Skypark's Tim Rhodes wants a one stop shop for all business benefits

Small Business Rate Relief (SBRR) was introduced in 2005 to help businesses in properties with a low rateable value to reduce their business outgoings.

The rateable value of a building is based on the cost and value of the property itself, which is reviewed every five years by local councils.

Companies based in a property with a rateable value of £5,000 or less are eligible for rate relief of 50%. This falls by one percentage point for every £100 of rateable value between £5,000 and £10,000.

About £200m in rebates is unclaimed every year and fewer than half of the 87,000 UK businesses that qualify for relief have applied for it. Previously, business owners had to apply for relief every year, but since April 2007 they need to apply once every five years. The deadline for 2007-08 is September 30.

The Forum of Private Business believes many companies may not realise they are eligible for a rate rebate.

Nick Palin, finance and administration director of the FPB, says: 'The Government needs to do much more to promote the scheme to help small firms, which need more help now than ever.'

Tim Rhodes, 55, managing director of Liverpool-based Skypark Freight, which runs quality checks on new cars, says: 'Though I cannot claim because we have two premises, I think the relief is a good thing. The problem is that the Government doesn't do enough to ensure that small businesses know about this. There should be a one-stop shop where firms can find out what business benefits, reliefs and grants they are entitled to.'

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