Around two thirds of small businesses in London are not claiming tax relief that could make the difference between staying afloat and going bankrupt, according to a report by the Local Government Association.
The Small Business Rate Relief, which can help small businesses cut their bills by up to £2500, currently has approximately £400m worth of unclaimed funds.
Around half of the small business in England and Wales are failing to take advantage of the tax relief opportunities available to them. The North East has the highest level of take-up, with 79% of eligible businesses using the relief.
Most recent figures show that the number of companies facing liquidation in the first quarter of 2006 rose to 3,439 – up 17.6% on the previous year.
Council leaders are urging small businesses to contact their local council to ascertain how much tax relief they are entitled to.
Chairman of the Local Government Association Sir Sandy Bruce-Lockhart, said: “Small businesses up and down the country are facing immense difficulties keeping their heads above water. Hundreds of millions of pounds is sitting around waiting to be claimed by hard-pressed bosses of small firms.
“When local businesses are facing rising costs, it is vital that they apply for the tax relief that they are entitled to.”
