I was wondering
how helpful Sunderland Council/Labour have been to small businesses in
the local area, and I decided to put in a Freedom of Information request to see
what the uptake of the government's Small Business Tax Relief scheme. The
council isn't allowed to say who is claiming this, but strangely enough, they
are allowed to say who isn't! Bureaucrats! Anyway, the results were very
interesting. I asked:-
Q. The number of small businesses with a
rateable value below £12,000 in the Sunderland area, which is the current
threshold for Small Business Rate Relief.
A.
There are 2792 properties in Sunderland with a
rateable value below £12,000.
Q. The number (and percentage) of these
businesses who are eligible for but not claiming Small Business Rate Relief.
A.
2075 (74.32%) of those properties referred to
in (a) are not currently claiming Small Business Rate Relief.
Q. How
does the council inform businesses whether they are eligible for this, if
indeed they do so?
A.
We actively promote Small Business Rates
Relief, information is included with bills and is explained fully on the
council’s website. We also send out application forms and inform businesses during all
contact with them that they could be eligible.
So in other words, three quarters of all businesses
are entitled to claim money back from the council, but don't! Outrageous! You'd
expect our esteemed councillors to shout about this to the rooftops, wouldn't
you. It would make them look good. But then, it would also impact on the amount
of money that the council claws into its' coffers. It's a simple enough choice.
Give businesses money to help them, or keep it for things like those high salaries. It was in the news last
week that the chief executive and 11 of his executives were paid £1,662,768
last year! £229,547 of that was for the chief executive himself!
You can see the full list at:-
Some interesting things emerged. As well as the many
business addresses listed, there were several other types of business facility
on the FOI list, which must obviously be eligible for making claims. Some
examples are:-
(i) Advertising hoardings - I suppose there's a
rental cost for these which is claimable.
(ii) Telecommunications masts and receivers - I
know these pay land rent. Obviously another tax loophole.
(iii) Rented office facilities
(iv) Car parks. Quite puzzling that the council list
has its own carparks on, e.g. Raby Road Carpark, Washington (item 1726). Also a
few schools, and recreation grounds. Is the council saying it can claim back
tax on its own property so it doesn't have to pay itself? One of those internal
markets or limited companies? Or did they just copy and paste the info from
another document?
(v) There are a number of charities, sporting and
volunteer organisations on the list. Is the council saying these are liable for
tax relief, but it's not telling them? Very charitable.
All I can say is, it raises a lot of questions (and
hackles) even in somebody like me with a very basic knowledge of tax. It really
needs the research skills/advice of a tax expert or accountant.
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