Business Rates for non profits ...

[diesel41]

Hello,
I am a board member of a non profit organisation with charitable objectives.
Until recently we had a building that the project ran from. We asked our Local Authority to waive the business rates. They reduced them but didn't write them out.
We complained, gathered huge support to say all of our work was charitable from people within the council that we have SLA's with and heard nothing for 6 months.

Now we have an invoice that should be paid by the council. The rates section have impounded it under the statutes of set off 1729 and 1735 as they are now saying we owe them 7k for rates.

They have not responded to the complaint, they have not given us any reasons for why they made the decision this way and they have not sent us an amended bill.

It means we now cannot pay our staff and effectively the organisation will fail.

Can they do this and is there any means of challenge?
Can we take them to court for the £750 and get a judge to order the paper work for the decisions made on business rates. They wont respond to a Freedom of information act request. Can we go to the Local Government Ombudsman, they never responded to the complaint.

I dont know if any one can help I hope so, the project supports 150 marginalised children and young people a week - its a resource they cannot afford to loose.

Many THanks - D

[teaboy2]

Re: Business Rates for non profits ...

Better still goto the press, that will surely get the councils attention.

Though i must state that the maximum relief that charities are entitled to on business rates is 80%.

So the question here is whether you got the full 80% relief when they reduced the amount of business rate you had to pay. Looking at the rate of 7K that they are asking you for i would say you did not get the full rate releif you are entitled to as a charity - Though it only applies if you are in a non-domestic property which is wholly or mainly used for charitable purposes. This is what the HMRC states by the way.

[Judge mental]

Re: Business Rates for non profits ...

Hi:

I may be wrong but I thought the 80% relief for charities was madnatory.

Local authorities can also provide discretionary relief for the other 20%, the relief needs to be applied for, so once you have established whether the 80% entitlement has been given I suggest you apply for the other 20%.

For the discretionary relief to be awarded one or more of the following must apply

a. the property is wholly or mainly used for purposes of recreation and all, or part of it, is occupied for the purposes of a club, society or organisation not established or conducted for profit;
b. all, or part of the property, is occupied for the purposes of one or more institutions or organisations, none of which is established or conducted for profit and each of whose main objects are charitable or are otherwise philanthropic or religious or concerned with education, social welfare, science literature or fine arts;
c. The ratepayer is a charity or trustees for a charity, and the property is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities);

You might also consider writing to the councils chief exec, the local councillor and your M.P. As you have had no response to your complaint you can submit a complaint to the Ombudsman.

Stuart

[ploddertom]

Re: Business Rates for non profits ...

Are you a registered Charity?

[labman]

Re: Business Rates for non profits ...

A little more background as I exchanged some information with diesel41 last night.

It turns out that the not for profit company has insurances in place, and one of these offers free legal advice. They were going to explore this avenue first and post back if they thought LB could be of any further help.