Cut-off looming on £1bn unclaimed business rates refund - as government admits many firms occupy over-valued premises
More than £1billion in unclaimed business rates could be kept by the government if firms fail to meet the strict deadline for appeals, advisers have warned.
The government has admitted that many companies may be occupying over-valued premises, which means thousands could be in line for refunds.
The Chancellor’s Autumn Statement ruled that they have only until the end of this month to appeal.
Get your rates right: More than £1billion in unclaimed business rates could be kept by the government if firms fail to meet the strict deadline for appeals
However critics claim the deadline will mean millions will remain unclaimed.
Business adviser RatesRecovery revealed there are more than 1.35million properties that have not appealed their rates yet, and based on previously successful claims there could be about £1billion waiting to be refunded.
Martin O’Neill, director of RatesRecovery, said: ‘If you compare it to a personal tax code, it’s like the HMRC saying, “Yes, we admit we got your code wrong and have been overtaxing you, but I’m afraid we’ve just introduced a rule that states we can’t pay back your money.” ’
The cut-off set by the government means occupiers will be denied the right to reclaim rates overpaid between 2010 and 2015.
The current rating period runs until 2017 but if appeals are not made by the deadline businesses will only be able to claim for payments between now and 2017.
Time is if the essence: The cut-off set by the government means occupiers will be denied the right to reclaim rates overpaid between 2010 and 2015
Five years of overpayment could amount to many thousands of pounds for some businesses, RatesRecovery claims. O’Neill added: ‘Although those that appeal from April onwards will receive their reductions for the last two years of the period, they will lose the right to a refund of overpayment.’
The government nets £28billion from business rates a year levied on just over 1.9million properties.
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