The Ombudsman's final decision
Summary: We will not investigate this complaint about the Council’s billing for business rates. This is because there is no evidence to suggest fault by the Council sufficient to warrant an investigation.
The complaint
Mr X complains that despite providing evidence to the Council to show he is a sole trader, it will not change business rates liability from a limited company.
The Ombudsman’s role and powers
We investigate complaints of injustice caused by ‘maladministration’ and ‘service failure’ which we call ‘fault’. We consider whether there was fault in the way an organisation made its decision. If there was no fault in how the organisation made its decision, we cannot question the outcome. (Local Government Act 1974, section 34(3), as amended) We provide a free service but must use public money carefully. We do not start or continue an investigation if we decide there is not enough evidence of fault to justify investigating. (Local Government Act 1974, section 24A(6), as amended, section 34(B))
How I considered this complaint
I considered information provided by the complainant, including the Council’s response to the complaint.
I considered the Ombudsman’s Assessment Code.
My assessment
Mr X complained to the Council about being charged business rates as a limited company rather than being treated as a sole trader. The Council explained it had received a copy of the lease for the premises in 2023 which showed Mr X had signed the lease in the name of a limited company in 2022 and it had set up the business rates account accordingly.
It said in 2024 it received an amended lease from Mr X in his own personal name but that as the initial lease had been in the name of the limited company and the rent had been paid using the company name, it was satisfied the business was liable for business rates and it would not accept a backdated lease showing Mr X’s sole name. It confirmed it would reassess matters if there had been a change of occupier and the required proof of trading was provided.
It is not our role to act as a point of appeal against decisions made by councils with which complainants do not agree. We cannot question council decisions if they have followed the right steps and considered the relevant evidence and information. The Council considered the information it had and that provided by Mr X but satisfied itself the business rates account had been properly set up. This is disappointing for Mr X but there is no evidence to suggest fault affected the Council’s decision.
Final decision
We will not investigate Mr X’s complaint because there is no evidence to suggest fault by the Council sufficient to warrant an investigation.
Investigator's decision on behalf of the Ombudsman