Garage owner speaks out against business rate changes

Some independents face a substantial increase in rates while others will see a dramatic reduction

Garage owner speaks out against business rate changes
Susanne Mead says her business is having to face a significant rise in business rates.

The owner of Caxton Hill Motors ltd in Hertford has spoken out against changes to business rates which could force the garage to relocate.

The government is reviewing its business rates for the first time since 2010 and it could see some independent garages have to pay thousands more every year.

Business rates are charged in proportion to the value of the property, estimated by government surveyors.

Currently businesses can get ‘small business rate relief’ if the property value is less than £12,000 and the business operates from just one property.

If the value is less than £6,000, the business will get 100 per cent business rate relief.

However, from April 2017, the ‘small business rate relief’ threshold will be raised to £15,000 and property values of less than £12,000 will get 100 per cent relief.

It could mean Susanne Mead, owner of Caxton Hill Motors, may be slapped with a bill of more than £10,000 because the garages new rating will be £12,250 – just £250 over the threshold for 100 per cent business rate relief.

‘Massive impact’

She said: “It has a massive impact when you are trying to be competitive.

“The chances are we will have to close and there must be lots of garages in exactly the same position.

“The difference before was we had this small business rate relief but now the rules have changed.

It’s been estimated that 36 per cent of businesses are likely to see an increase in rates, with 20 per cent likely to see a ‘significant’ increase.

Susanne added: “I will have to look at our labour rates and work out what will increase our profit.

“We will have to look at raising prices for our customers which I don’t want to do.

“We are a small business, we look after our customers.

“We’re like a family.

“Nobody seems to be looking after small businesses and the government doesn’t seem to look after the little guy.”

Will your garage see a rise in business rates? How will it affect your business? Share your comments and concerns below.

20 Comments

  1. You will only pay around £5000 .00 ,

    Reply
  2. You will only pay around £5000 .00 ,

    Reply
  3. Not only are there high business rates to deal with but certain size buildings based where i am in London have to pay towards the cost of Crossrail via their business rates bill, This is for about 15 years or so. The argument that it will increase income for London businesses by making in easier to travel here by TRAIN does not really help a garage!!!

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  4. Not only are there high business rates to deal with but certain size buildings based where i am in London have to pay towards the cost of Crossrail via their business rates bill, This is for about 15 years or so. The argument that it will increase income for London businesses by making in easier to travel here by TRAIN does not really help a garage!!!

    Reply
  5. Being a small operation we will still be not paying any hopefully. Having said that we PAY for a recycling bin at present which stands beside my household one which is free and emptied at the same time. The government need to decide whether or not they want small businesses in this country or put up with the unemployment that would result from their failure.

    Reply
  6. Being a small operation we will still be not paying any hopefully. Having said that we PAY for a recycling bin at present which stands beside my household one which is free and emptied at the same time. The government need to decide whether or not they want small businesses in this country or put up with the unemployment that would result from their failure.

    Reply
  7. Hitting the small guy’s again and again. The goverment must be getting back handers from the already rich and greedy. Why else would they want us all gone.

    Reply
  8. Hitting the small guy’s again and again. The goverment must be getting back handers from the already rich and greedy. Why else would they want us all gone.

    Reply
  9. We are a small garage so we don’t think we will pay anything, but that’s yet to confirmed.
    I resent paying business rates as its paying good money out for nothing. Perhaps we should invoice our respective councils with a sum equivalent to the rates and see how they like it. There was nothing wrong with the old system so the only reason to change it is so they can get more money. I foresee a lot of places closing

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  10. We are a small garage so we don’t think we will pay anything, but that’s yet to confirmed.
    I resent paying business rates as its paying good money out for nothing. Perhaps we should invoice our respective councils with a sum equivalent to the rates and see how they like it. There was nothing wrong with the old system so the only reason to change it is so they can get more money. I foresee a lot of places closing

    Reply
  11. I run a small garage business and I’m in exactly the same position as Caxton Hill Motors – my rateable value is £250 over the £12k rate relief threshold. My annual rates bill will be just over £6000. Surely a sliding scale of rate relief would the fairest way forward for all small businesses. I don’t expect to pay nothing, but I don’t see why my neighbour who has 300 sq ft less than I do pays no business rates and I do. This has forced me to reassess our situation, but shouldn’t result in letting staff go.

    Reply
  12. I run a small garage business and I’m in exactly the same position as Caxton Hill Motors – my rateable value is £250 over the £12k rate relief threshold. My annual rates bill will be just over £6000. Surely a sliding scale of rate relief would the fairest way forward for all small businesses. I don’t expect to pay nothing, but I don’t see why my neighbour who has 300 sq ft less than I do pays no business rates and I do. This has forced me to reassess our situation, but shouldn’t result in letting staff go.

    Reply
  13. Welcome to the real world.
    Last year our business rates were £39,263.00
    I started as a one man band in 1990 and I had to pay business rates from the day I started.
    Why should I have to compete with competitors paying no rates at all.

    Reply
    • Easier in 1990 bob.

      Reply
  14. Welcome to the real world.
    Last year our business rates were £39,263.00
    I started as a one man band in 1990 and I had to pay business rates from the day I started.
    Why should I have to compete with competitors paying no rates at all.

    Reply
    • Easier in 1990 bob.

      Reply
  15. Business rates is a real bone of contention with me i’m afraid . Now currently my business operates over two industrial units . One i get a small rate relief on and the other i cant . Now under the new system i loose all entitlement . Now the bone of contention . Both units if occupied by different businesses are of a size where 100 % relief would be received , but we can’t , now if i understand the new system correctly and if i wanted to be dishonest i could break the company into different divisions under different business names , one being a Mot shop, tyres , and the other a repair garage invoiced , leases , company reg nos accounts and i could get 100% relief again and save the company £10k per annum. I get nothing whatsover from the local council , not even bin collection. I employ the same people in two units as i did in one , i turnover the same but i no longer wanted to be crammed in struggling to work around ever increasing in sized vehicles so opted for another unit. i feel additional help could be given and a rethink necessary.

    Reply
    • Tell me more how does this work I’m on to it

      Reply
  16. Business rates is a real bone of contention with me i’m afraid . Now currently my business operates over two industrial units . One i get a small rate relief on and the other i cant . Now under the new system i loose all entitlement . Now the bone of contention . Both units if occupied by different businesses are of a size where 100 % relief would be received , but we can’t , now if i understand the new system correctly and if i wanted to be dishonest i could break the company into different divisions under different business names , one being a Mot shop, tyres , and the other a repair garage invoiced , leases , company reg nos accounts and i could get 100% relief again and save the company £10k per annum. I get nothing whatsover from the local council , not even bin collection. I employ the same people in two units as i did in one , i turnover the same but i no longer wanted to be crammed in struggling to work around ever increasing in sized vehicles so opted for another unit. i feel additional help could be given and a rethink necessary.

    Reply
    • Tell me more how does this work I’m on to it

      Reply

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