Saturday 15 August 2009

Rate relief hit by red-tape delays

Small businesses are facing delays in taking advantage of the Government's rate relief scheme because of the complexities of the software needed to calculate the new rates.

The scheme - which allows firms to defer payment of 60% of the increase in rates bills - came live last week.

Although The Local Government Association believes most councils met the deadline in sending out formal notification to businesses about the scheme the complexity of calculating the rates has led to fears they will not be done in time.

"When the Government announced its business rates deferral scheme at the end of March it claimed to be helping businesses with lower rates bills during the recession," said Jerry Schurder, head of business rates at Gerald Eve.

"In the event businesses have had to continue paying full rates since April and it will not be until October at the earliest that they see any benefit."

www.ukba.co.uk

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