Business Rates

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    Business Rates

    I have been trading in front side part of full shop size 7 feet wide front , 14 feet deep own separate entrance with my own shutters for the last 20 yrs. Total full shop size is approx 18 feet wide by 45 feet deep.
    My rents are always on time every week by cheques or online transfer to landlord account without fail. My landlord had been trading in the other part of his own big shop till 2010 and carried on paying full business rates for his shop including mine and whole basement. I don’t have basement only occupy 7x14 that small part. In 2010 Landlord stopped trading and leased out his big part of the shop to third party. I continued my trading as normal. According to my knowledge my landlord was continuing paying business rates for my part of shop and his own basement since 1993. Third party was paying their own business rates for their part of the shop (not basement). Third party stopped trading after running for approx two years and left.
    Last week my landlord received a big bill since Dec 2010 till today from Council asking for his basement and my part of shop business rates. All of sudden after my 20 years trading Landlord approached me to pay business rates for my part of shop from Dec 2010, the bill he received on his name. I disagreed with him as I have been paying my rent and rates all inclusive since 1993 but there was no contract made between us, just £3000 deposit (premium) was given to him. I have receipt as a proof for my tenancy. I refused to pay business rates, as my business rates are included in rent since 1993 which was verbal agreement between us. Landlord went to Council yesterday asked them to chase me for my area business rates since 2010. We received a call from council saying that they are sending us bill for our area since 2010. Why should we pay this huge amount of amount of business rates due to negligence of my Landlord. How come this bill did not come to me or landlord did not inform council in 2010 why after 2 and half years.
    Please suggest what should I do and where do I stand in this situation regarding business rates. Do I have to pay or landlord should continue paying the way he was paying since I occupied my small part of shop in 1993.
    Many thanks in Advance
    Shruti

    #2
    It sounds like you both have benefited from the council not rating your part of the premises so a fair deal wants working out either by your landlord to increase his rent to absorb the rates suddenly being applied to your area of your occupation or by you paying the now chargeable rates for that area. Its only fair to do that surely. Looks like you have both had twenty years of no rates being applied which is a fair benefit already taken.
    The on line rating register gives the square meterage of various areas and there price per meter so you should be able to check if rates were ever applied in the last two valuations to the areas in question.

    Comment


      #3
      Hi Bricks&mortar

      I think you misunderstood here, My landlord has been paying business rates for the whole shop including mine till 2010 including all those previous years since he owned shop. Then new tenant taken over landlord part of the shop in late 2010 and he continued paying business rates for whole full shop on mutual understanding by paying 25% less rent to landlord and not showing my company name (don’t understand why ). When new tenant could not survive in business after approx two years he asked local authority to refund overpaid money which he paid for basement and my area since late 2010, (so confusing matter for all of us) Actually this new tenant wanted to recover his losses somehow from somewhere. After receiving new tenant refund from local authority, the same amount bill (invoice) were sent to landlord for recovery by local authority. After receiving court notice from local authority for recovery of landlord basement and mine area business rates, landlord approached me and asked me to pay the bill for my premises. Amount gradually grown to £8300 since 2010 for which I have no knowledge about this and no one told me that I will have to pay business rates and there was no letter from local authority since 2010. Now my question is why My landlord did not inform local authority about my presence as s shop keeper at the same time in late 2010 when he rented his own part to new tenant. Only last week Sep 2012 he informed council that this bill which he received on his name from local council from 2010 till today should be transferred to my tenant (me) name as a separate business trader. I don't understand when Landlord was taking high rent from me from last 20 yrs till today all inclusive (including business rates) in rent why did not he inform local council in 2010 that I am trading separately or since 1993 when I actually occupied this small area, at the same time when he leased out his part of shop to new tenant in 2010. My question is why should I pay business rates for my area to local council from 2010 till today when I am already paying more than enough rent which covers business rates as verbal agreement. Why my landlord did not inform local council about my area (shop) when he leased out to new tenant in 2010. Why did not he tell local authority in 1993 when I took over my part as a shop. Main question is am I liable to pay business rates from 2010 till today or from 20th Sep when landlord informed local authority.
      Many Thanks in advance

      Comment


        #4
        Thanks Bandontherun

        My question is my landlord went to local authority on 20th SEP 2012 and informing authority to demand this £8300 bill from me since late 2010. As per rules and regulations my landlord should have informed local authority in 1993 if not then late 2010 when new tenant occupied that shop. He has informed local authority on 20th of this month and I should be liable to pay business rates from 20th not from late 2010.
        Please read post (question) send by in bricks@walls
        Many thanks

        Comment


          #5
          Oh I see sorry for the misunderstanding. Sounds like a lot of the blame for this complicated state of affairs lies with your landlord not having the portion of the building you are in rated separately right from the start.

          If you are looking for the landlord to absorb the new rates bill for your area it will be as Band On The Run says down to the negotiating strengths of each party. Even though your right in feeling aggrieved you may have to compromise to sort this matter out . There is often no justices’ in these sort of situations its just a matter of sorting a sometimes unreasonable compromise out. If you have occupied the premises and the council are giving you a rates bill for past time it sounds as though you may be liable ..

          You could get 50 people to be on your side but you may end up having to pay business rates on top of the rent because of the fact you have been occupying the premises. Maybe some kind of moratorium on a future rent increases to absorb some of the rates payable in future is a way out. Its not a good outcome but it may be the best you can negotiate.

          If you had a written contract saying your rates were inclusive you would maybe have some bargaining power but all this verbal understanding stuff can be very vague.
          Best get a legal contract with the landlord for the future . Good luck.

          Comment


            #6
            Thanks Brick&Mortar

            Many thanks for your advice however my question after all understanding is why my landlord did not inform local authority about my existence for those years since 1993 or even when new tenant occupied next door on late 2010. Local authority should charge me business rates only from 20th September 2012 when my landlord informed local authority about my existence not from late 2010. He should have informed local authority in 2010 as soon as new tenant stared his business next door. We work 7 days a week how can we even think of these things when everything was running smoothly for the many many years. I personally think I should be liable to pay business rates from 20th September 2012 not from late 2010. I did not have any clue what was happening till landlord told me to in early September 2012 to transfer this huge amount bill £8300 on my name. Local authority should take this into account too if not then it will be very very disappointing and depressing for me. It sounds like Landlords can twist tenants anytime but tenants have no rights so shame and no fair in justice. But I have decided to take this matter further because I am hurt. Any suggestions are respectably acceptable please advice.
            Regards

            Comment

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