My ltd company moved into a large empty factory about 3 years ago on a long lease. Immediately, we divided it up into small offices and workshops and then sublet to a variety of small businesses. I notified the Valuation Office and the LA that this is what we were doing, and requested that they reassess for the purpose of business rates. I wrote and phoned regularly, and eventually about three months ago, the VO sent an inspector to take measurements etc. We had a conversation that day and she agreed to backdate the arrangement by two years.

We then heard nothing more for a couple of months, and she sent a set of plans that agreed with what was the case in real life. Yesterday, however, I got a summons for nearly £50k for three years business rates at full whack. I rang the council who told me a) the valuation office had only agreed to backdate this division by 6 months and b)I'd have to pay up and argue the toss later. The amount on the summons does not reflect even this paltry backdating, but goes right up to April 2012.

Needless to say, I'm not pleased. The Valuation Office took so long to look at the building after my initial request I lost the opportunity to pass the business rates onto the tenants - in fact they would all have been eligible for small business rates relief. I've also got an archive of contracts that shows my company was not the final occupier of the premises, and just effectively a management company.

Additionally, the property as defined on the bill includes a large basement area, which is nothing at all to do with us - it has a separate entrance and is not even on my lease. The council refuse to have any conversation on the subject, saying they can only act on information they receive from the Valuation Office. I've been trying to contact them since the summons appeared, but I guess they've all cleared off for the holidays.

Does anyone have any idea where we stand legally on this? The VO office information was wrong, and we tried repeatedly to get this corrected. We weren't the beneficial occupiers. Frankly I'd struggle to find five hundred quid, let alone £50k. Any case I could make to the magistrates? Are there any channels for disputing the Valuation Office decision re the backdating?

Thanks for any help!

I hope this may help.If the summons clearly states it includes an area (basement) over which you have no legal responsibility, then you should have more than enough casue to get the summons either withdrawn or at the very least adjourned at the hearing. The LA does have a duty to collect and enforce as based on the entry in the Local Rating List, BUT if you can prove that you do not have any legal entitlement to any part of the assessemnt you have been summonsed for, then you cannot be expected to pay it. If you have licences etc to prove that others are in rateable occupation of parts of the assessment then that also is good evidence to prove you are not liable. Recourse I am afraid is to your local Valuation Officer who, I expect, should have a large file on the hereditament and should be in a postion to establish the correct partitioning of the premises. Make sure that you copy your Councils rates office into any correspondence you send to the VO. As for the occupiers of the parts, if the changes are backdated, the Council will be obliged to issue backdated bills to the individual occupiers, whether they are still there or not. This may generate some unwelcome contact from them as they would likely have expected that their liabilities are cleared.Best of luck in getting a suitable resolution.

That's really helpful, thanks. It's common sense that we can't be made to pay the business rates on someone else's property, but of course I'm worried the law might not work that way. So would the best procedure be to ask for an adjournment on the basis that the facts are incorrect to give them time to sort the bill out properly? Could the magistrate consider the matter there and then and make a charging order for part of the amount claimed if they find our documentation incomplete, for example? Or is it an all-or-nothing situation where if the basis of the summons is inaccurate, it will get kicked out until the facts are properly established? Appreciate the advice.

Have a read of these:

http://www.northumberland.gov.uk/default.aspx?page=3320

http://www.kirklees.gov.uk/answers/business-rates/pdf/rbnndrliosumleaflet.pdf