How can I apply to defer payment of the increase in my business rates?

Question:

I have heard about a scheme to defer payment of the increase in my business rates in the 2009/10 financial year - will this work for me and how can I apply?

Answer: 

Such a scheme does exist and is called the Non-Domestic Rating (Deferred Payments) (England) Regulations 2009, which came into force on 31 July 2009.  These regulations allow rate payers to apply to defer up to 60% of the increase in rates for the financial year 2009/10.  An application has to be made to the relevant billing authority by 31 March 2010. 

If a rate payer occupies more than one property within the area of the billing authority, a single application can be made for deferral in respect of all of those properties. Rate payers must satisfy certain conditions in order to become eligible for a deferral.  A rate payer must not have already paid the rates for 2009/10 or be due to pay them in full within 21 days of the making of any application.  If a deferral is granted, it will spread payment by instalments over the following two years.

The regulations are primarily designed to ease the financial pressure on rate payers following the increase in the multiplier as a result of the inflation in September 2008. Unfortunately, the regulations have been drafted so that they are, in many practitioners' views, unnecessarily complicated and involve significant administration.

The regulations also provide for any deferral to be withdrawn and full liability to become due if a property is sold or occupation ceases by the ratepayer during the period of the deferral.

Although there are potential financial benefits of having the liability deferred, the application process is not easy and any real financial advantage will have to be weighed against the hassle of applying.

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