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It is also called a business rate scamwhere the companies fail to report the actual work or locations to avoid paying local charges. Such organisations do not declare the actual state of the property by saying it is not in use to get an exemption.
People who use the building for non-domestic purposes like shops, holiday homes, warehouses or other functions need to inform the local council and pay the charges. The tax determines the property's rateable value, and the council determines the rate against its value.
The institutions located in rural areas, the small firms, those working for a charity or facing greater hardships, may get some relief. Rate relief allows the owners to get a discount on the total payment.
Fraud is committed when people do not report their business. In most such cases, it is not a victimless crime as the money goes out from public services, affecting the community.
Not just the public but many others are affected by non-declaration. Businesses that meet the obligations are undermined through unfair competitive advantage, which can affect the local economy.
Small firms can apply for rate relief by filling in the application form if the rateable value is less than £15K. If the value is below £12K, you get a 100 per cent exemption. Although it is automatically deducted, one may have to apply for the exemptions.
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