The owner of a small business has slammed Barnet Council for dragging its feet over a tax refund.

David Lee, managing director of Rexell Products, says the council took weeks to refund more than £1,500 in business rates he had overpaid on a property in East Barnet Village.

By the time the council finally paid up, he had begun legal action in a desperate bid to get hold of the money.

Mr Lee said: “It is one rule for the council and one rule for small business owners. Local boroughs have no interest in helping small businesses.”

The dispute began when Rexell Products – a wholesaler and distributor of health and beauty products – took out a lease on a property at 209 Crescent Road, East Barnet Village, in June 2018.

Mr Lee said the agent marketing the property told him there would be no business rates payable because it was below the required rateable value.

But after moving into the building, he said he was sent a letter from the council in September 2018 saying he would have to pay more than £2,900 per year in business rates.

Mr Lee challenged the ruling with the Government’s valuation office, but in the meantime he said the council told him to keep paying the higher rate.

When the council told him to pay more than £1,300 by January 12 this year or face eviction, Mr Lee said he had to borrow money from family and friends to make the payment.

Days later, the Valuation Office Agency told Rexell Products the business rates payable on the building were significantly lower than the amount demanded by the council.

Mr Lee wrote to the council and asked for his money back. He was owed more than £1,500 – and a letter sent by the council has confirmed this amount.

But nearly two weeks later he had still not been paid – so he threatened to take legal action if the council did not refund the money within seven days.

When the deadline passed and he had still not received the money, Mr Lee issued a county court summons to recover it, along with late payment and admin charges.

The council refunded the business rates overpayment the following day – but not the late payment and admin charges.

Following a hearing at Shoreditch Magistrates Court on August 12, the council was told to cover Mr Lee’s legal costs, totalling nearly £300.

While the council says legal expenses are being finalised, a statement provided by the court shows the local authority spent £2,455 contesting the case.

A Barnet Council spokesperson said: “We acknowledge there was a delay in processing Mr Lee’s business rates refund. We would like to apologise for any inconvenience this has caused. We’re currently reviewing our processes to prevent this from happening again.

“There was no legal basis for Mr Lee’s late payment claim and we therefore contested this. The legal expenses accrued are currently being finalised.”

The Barnet Times has seen court documents ordering the council to cover Mr Lee’s legal costs, and letters by Mr Lee demanding the payments and threatening legal action.