Report business rate fraud
Business rates fraud is when businesses attempt to gain relief or exemptions from business rates that they're not entitled to. It's also known as non-domestic rate fraud.
Rates are worked out based on the 'rateable value' which is set by the Valuation Office Agency. There are many reliefs and exemptions available, including small business rates relief, which means businesses under a certain rateable value may not have to pay any business rates.
Other reliefs include discounted rates for charities, non-profit organisations, community amateur sports clubs, and buildings that are empty.
According to The Chartered Institute of Public Finance and Accountancy's counter fraud tracker, business rates fraud costs local authorities an estimated £7bn+ a year.
Examples of business rates fraud
- False applications for reliefs and discounts: for example, a business applies for small business rate relief and fails to declare they have other business properties that would affect their entitlement
- False tenancy or lease agreements
- Charitable exemptions where the premises is actually being used for something not related to a charity, for example, storage
- Failure to report changes in circumstance: changes that might affect the amount of business rates to pay include increases in the ‘rateable value’, taking on new business premises, or not informing the council when a business closes
- Identity fraud to attempt to avoid paying for business rates
- Impersonation attempts to obtain credit refunds
Report suspected business rates fraud
You can report your suspicions directly to us:
Complete our online form to report fraud
or
- Call the fraud hotline on 01432 260698
- Write to us at: Counter Fraud Department, Corporate Services, Plough Lane Offices, Hereford, HR4 0LE
Your referral will be taken in complete confidence and any personal information provided will be treated as strictly confidential.
Please provide us with as much detail as possible so that we can investigate the matter effectively. Where a referral does not provide us with enough detailed information about the matter, it may not be possible to investigate.
You can report fraud anonymously. However, in most cases it would help us if you leave your contact details, so that we can contact you for further information should we need it.
How we deal with fraud reports
All reports of alleged business rates fraud are treated very seriously and are investigated by the Counter Fraud Service.
Any individual that intentionally and dishonestly provides false information, may be investigated in line with the Fraud Act 2006 and other relevant legislation. We may also pursue prosecution, under Section 222 of the Local Government Act 1972, or work alongside the Crown Prosecution Service (CPS).