Reader email: What happened to the promised reduction in small business rates?

Relief reported to knock a third off company bills but are independent garages benefiting?

Reader email: What happened to the promised reduction in small business rates?
Roger Hannant is yet to receive a reduction in small business rates.

Roger Hannant of R H Motor Services in Norfolk writes to GW to find out if other independent garages are benefiting from a promised reduction in small business rates.

I have a long established garage and car sales business in North Walsham, Norfolk.

I wondered if you have had any feedback on the budget business tax relief from October, which the chancellor announced would be coming into force from April 2019 for the next two years.

“My council has not given any rebate”

Reason for asking is that my council has not given any rebate to my business rates, yet we have a car sales forecourt as well as parts, MOT’s and servicing sales.

My rateable value is £19250 and I pay £775 per month.

If I get relief it will save approximately £3000 per annum for the next two years, if they back date it.

It is a lot of money that the motor trade could save and invest in future technologies and training.

“If I get relief it will save approximately £3000”

I think the government work out eligibility based on planning codes.

All garage workshops and repairs are given a code of B2, light industrial.

All retail shops etc are given a code of A1/A2 and car showrooms, car hire firms and dealerships are a unique code of “Sui Generis” which qualify.

As I am car sales as well as a garage, my planning back in 1997 should have fallen on that bracket but not sure if it even existed then.

It seems my council will not grant the garage service side of the business relief at present.

We are awaiting the rates valuation office to come and assess the business.

In the meantime, my local MP is writing to the Ministry that control business rates to question why garage services – sales and repairs – are not retail.

They should qualify for this relief but as the government categorises garages as workshop premises, they deem them as industrial businesses.

My council who will only award me if it is deemed by the valuation office that car sales is the prominent part of my business.

Irrespective of my councils views, I am trying to get garage service recategorised as a retail service so independent – standalone garages will get the business rate retail relief.

I really would like to know if any garage workshops with car sales and a rateable value over £12,500 and under £51,000 are receiving this relief.

Small business rates relief explained

Chancellor Philip Hammond announced a cut in small business rates for companies with a rateable value of £51,000 or less in his 2018 Autumn Budget. Targeted at small retailers, the relief could knock a third off bills and it’s reported that 90 per cent of them would benefit. Businesses should contact their local council to apply for small business rate relief.

Has your business benefited from small business rates relief? Share your comments below.

Home Page Forums Reader email: What happened to the promised reduction in small business rates?

  • This topic has 1 reply, 1 voice, and was last updated 4 years ago by Mr John Hayward.
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    Roger Hannant of R H Motor Services in Norfolk writes to GW to find out if other independent garages are benefiting from a promised reduction in small
    [See the full post at: Reader email: What happened to the promised reduction in small business rates?]

    #193412 Reply
    Mr John Hayward
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    I have had the same fight with the council with them refusing any retail relief. I do however not sell cars, we are just garage repairs and serving.
    I have a rateable value of £26000.
    In my correspondence with he council they would not even tell me why I was not retail, just that I was industrial and I should except that.
    After quite a bit of research I managed to find out that it might be because of the B2 planning codes, but never got it confirmed.
    I did however find a dozen or so councils that are including vehicle repair workshops in their retail relief scheme, so it will depend on where your business is located.
    With the current crises it is even more of a blow as we will not be entitled to the free rates for a year, or any of the grant money announced.

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