Empty car parking spaces can be a significant source of frustration for business owners. Whether due to low foot traffic, seasonal fluctuations, or changing consumer habits, empty parking spaces can weigh heavily on a company’s bottom line. However, what many business owners may not realize is that these vacant spots can also have an impact on their business rates.
Business rates, also known as non-domestic rates, are taxes that businesses in the UK pay on the commercial property they occupy. These rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). The rateable value takes into account various factors, including the size and location of the property, as well as its intended use. Empty car parking spaces are often included in this calculation, as they are considered part of the overall property.
For businesses with a significant number of empty parking spaces, this can result in higher business rates than necessary. After all, if these spots are not being utilized to generate income, it seems counterintuitive to have them counted as part of the rateable value. However, the reality is that the VOA considers any space that is available for use by the business as part of the rateable value calculation, regardless of whether it is actually being used at the time.
So, what can businesses do to mitigate the impact of empty car parking spaces on their business rates? One option is to challenge the rateable value assigned to the property by the VOA. Businesses can do this by providing evidence that the empty parking spaces are not being used for commercial purposes and therefore should not be included in the rateable value calculation. This could include providing documentation such as photographs of the empty spaces, records of foot traffic and customer numbers, or any other relevant information that demonstrates the underutilization of the parking spaces.
Another option for businesses looking to reduce their business rates is to explore the possibility of applying for relief or exemptions. The UK government offers various relief schemes that are designed to help businesses lower their business rates burden, including relief for empty properties. By applying for these relief schemes, businesses with empty parking spaces may be able to reduce the amount they pay in business rates each year.
It’s worth noting that the rules and regulations surrounding business rates can be complex and vary depending on the specific circumstances of each business. As such, it’s important for business owners to seek advice from a qualified professional, such as a chartered surveyor or business rates consultant, to help navigate the process of challenging rateable values or applying for relief schemes.
In addition to seeking professional advice, businesses can also take proactive steps to minimize the impact of empty parking spaces on their business rates. For example, one option is to consider leasing out the empty parking spaces to other businesses or individuals. By generating income from the spaces, businesses can show the VOA that they are being utilized for commercial purposes, which could potentially help reduce the rateable value assigned to the property.
Another option is to consider repurposing the empty parking spaces for other uses that could generate income for the business. For example, businesses could explore the possibility of converting the spaces into temporary pop-up shops, food trucks, or advertising spaces. By finding creative ways to make use of the empty spaces, businesses can not only potentially lower their business rates but also generate additional revenue streams.
In conclusion, managing empty car parking spaces business rates can be a challenging task for business owners. However, by taking proactive steps such as challenging rateable values, applying for relief schemes, and finding creative ways to utilize the empty spaces, businesses can help minimize the impact of these vacancies on their bottom line. By seeking professional advice and exploring all available options, businesses can ensure they are not paying more in business rates than necessary.