Business rates are a significant expense for companies across the UK. With many business owners grappling with rising costs in the current economic climate, should you challenge the amount you are paying on your business rates?
Business rates are a significant expense for companies across the UK. With many business owners grappling with rising costs in the current economic climate, should you challenge the amount you are paying on your business rates?
For many commercial property owners and tenants, business rates, or non-domestic rates, are a hindrance. Business rates are charged on most non-domestic properties, including shops, offices, pubs, warehouses, factories and holiday rental homes.
A modern variation of a 500-year-old tax, the current business rates were introduced in 1990 to fund local services. The amount of business rates you pay is based on the estimated rental value of your property, which is known as the Rateable Value (RV). Your RV determines the amount you pay for your business rates, in short, the higher your RV, the higher the liability.
Between 2021 and 2022, the Ministry of Housing, Communities and Local Government, collected £25.1billion in business rates and the tax is among the most secure income for the government.
A successful appeal of your Rateable Value could reduce your business rates liability and, in some cases, may result in a refund of business rates already paid.
The appeal process is a three stage process known as a check challenge appeal, which can be submitted through the Valuation Office Agency, who determine the initial rates liability, based on their estimation of your RV.
Various factors, including location, property size and condition can influence your rateable value. The rates bill is then calculated by applying a multiplier, set by the government, to your RV.
Business Rates valuations can be technical where valuation principles are underpinned by legislation and case law. A report in 2021 revealed that over one third of small businesses were unaware of small business rates relief, a system that could drastically affect their business’ outcomes.
Your RV can also be appealed if your property is undergoing building works, is partially or full vacant or is affected by local disruption. Challenging your Rateable Value can save business owners and landlords a significant amount of money.
Leeds-based property firm, Bradley Hall, recommends that commercial property owners undertake a business rates review, and if appropriate, their team can submit an appeal of the Rateable Value, in order to ensure you are not overpaying.
With their in-house expert valuer Paul Dodds, Bradley Hall can support clients through the appeal process, ensuring your business receives the best possible outcome.
Paul Andrew, Head of Office at Bradley Hall Leeds, commented: “Paul Dodds joined Bradley Hall after a three-year tenure at the Valuation Office Agency (VOA), where he specialised in resolving rating disputes. During his time at the VOA, Paul handled rating disputes across various asset classes nationwide, including retail, office, and industrial units.
“In his final year, he was part of the National Valuation Unit, where he focused on resolving disputes involving properties with higher Rateable Values (RVs) within the City of London. His expertise also extended to representing the VOA at valuation tribunals.
“Since joining Bradley Hall, Paul has continued to leverage his experience by advising clients on appealing their business rates, providing them with strategic guidance to navigate the complexities of the rating system.
“If you would like a free consultation to see if you can reduce your business rates, please contact paul.dodds@bradleyhall.co.uk”
