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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5607
Experience:  FCCA FCMA CGMA ACIS
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I am paying business rates and service charges on my empty

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I am paying business rates and service charges on my empty shop which is crippling me as the only income that I have are a few parking fines that I received. Can I offset the cost of the rates etc against my employment income? My business closed a few years ago due to ill health. It is impossible to lease the building and the potential investors looking to buy the property from me may not go ahead as planning has not been agreed. Any help would be appreciated, thanks.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

What is the rateable value of these premises?

Customer: replied 6 months ago.
the rateable value is 31250

That is well above the exemption limit at GBP 2899 so the imposition of business rates on empty premises is correct. It would be possible to set this expenditure against your employment income were you in business, but from the tenor of your question you closed it some years ago. You would have been better advised to keep it running whilst you are still lumbered with commercial premises and offset the loss. I doubt if HMRC will permit you to reopen it if you had formally closed it down and notified the taxman to that effect. You could always try though.

I am so sorry to have to impart such gloomy news.

Customer: replied 6 months ago.
Thank you, ***** ***** what I thought but I thought I would check if there was anything I had missed....

Try having a go at HMRC to attempt to wriggle out of your business closure as an honest mistake as you were not aware of the shop retention situation and the financial consequences thereof. It is always worth having a try!

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