16 February 2018

The extent of business rates relief fraud

It is estimated that there could be over £25m worth of fraud being perpetuated by businesses falsely claiming Small Business Rates Relief across England, according to data analytics experts Destin Solutions.

Small Business Rates Relief (SBRR) is provided to a number of businesses across England on the basis that they either only use one property or have a rateable value of less than £15,000.

Historically information provided by small businesses claiming relief has been extremely difficult for local authorities to verify due to lack of resources and an inability to access a country-wide view of businesses and the properties they occupy.

Analysing the business rate information of 98.5% of English local authorities, Destin Solutions found that a number of businesses claiming relief have been doing this erroneously or falsely.

A significant number of businesses had other branches set up in neighbouring and other authorities and are therefore not entitled to the relief they are claiming.

Focusing on 24 selected authorities, there was a staggering £2.68m worth of suspicious claims requiring further investigation.

These 24 authorities represent just over 7% of English authorities meaning that the actual figure for fraud will be significantly higher and for cash-strapped authorities, recovery of funds and cutting down on fraudulent claims will provide a much-needed boost to finances.

One of the founding directors of Destin Solutions, Duncan Baxter, said: 'Our inability in the past to gain a single country-wide view of all 'ratepayers', has led to a situation where I think businesses think they can get away with not declaring the full extent of their operation.

'We now have a very strong deterrent and the fact that HUB requires no input or additional effort from local authorities and is available now, means we can start tackling the problem head-on.'

SIGN UP
For your free daily news bulletin
Highways jobs

Practice Supervisor (Permanence & Reunification)

North Yorkshire Council
£47,181 - £51,356 per annum
Thank you for your interest in joining our Children and Young People’s service. Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Fleet Technical Officer

Derbyshire County Council
Grade 9 £32,347 - £34,317 per annum
You must also be able to demonstrate a basic level of understanding of the Operator’s Licence compliance requirements Derbyshire
Recuriter: Derbyshire County Council

LGR Programme Director

Worcestershire County Council
Up to £120k
This is a once in a generation opportunity to shape the future of local government in Worcestershire. Worcestershire
Recuriter: Worcestershire County Council

Team Manager - Future First

London Borough of Richmond upon Thames and London Borough of Wandsworth
£51,540 – £62,451 per annum
Team ManagerFuture... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Developer Obligations Officer

The Royal Borough of Windsor & Maidenhead
£39,526 - £43,613 per annum
We have an exciting opportunity for a Developer Obligations Officer to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead
Linkedin Banner