Business rates are taxes charged on non-domestic properties like shops, factories and offices. For example, if you are using a non-residential building then you are required by law to pay business rates. The billsare sent out every year, in either February or March. The amount is highly dependent on your property’s rateable value.
The value is based on yearly market rent value which is computed by the Valuation Office Agency. This is reviewed every 5 years and it considers the size and usage of the property.
Some buildings are exempt from business rates such as farm buildings, places of worship and buildings for disabled people. If your building is currently empty, you may not be required to pay the rates for 3 months. Also, some industries can actually extend the empty property relief such as for warehouses, listed buildings and buildings with a rateable value below £2,900.
When asking for an appeal
You can use the government website to appeal against your business rates. First, you have to appoint an agent who is an expert in business rates management. Afterwards, you can request a detailed review of your property’s valuation. Indicate the current usage of the property including mergers and splits. Also, tell the VOA of any external factors that are affecting the property. Once these things are done, you can challenge your current business rate.
If you still don’t agree on the business rate set by VOA, you can take your case to the Valuation Tribunal.
Estimating your business rates
Computing the exact amount might be difficult for some, so we will just provide you with quick and easy steps to estimate how much it will cost you.
First, look for your property’s rateable value by postcode, then find the proper multiplier for your property’s size, nature of business and location. Simply multiply itby the multiplier, then you will be able to estimate your business rates.
Business rates increase
The government delayed the current valuation by two years to avoid it from affecting the general election. Because of this, the increase in rates bills has been really huge. Some businesses might face up to a 100% increase in rates. Small businesses in some areas will be highly affected once this has taken place.
A lot of establishments and firms in England and Wales are about to see a dramatic change to the price they pay for business rates since the government has already issued the latest rateable values of their properties. This is considered to be the largest change to business rates as it will highly impact small businesses in the high street.
The government will provide a transitional arrangement so that business owners will have enough time to adapt to this huge change. So, businesses that are facing higher rates will see an increase in their business rates gradually over the next five years. But for those businesses where the property value has also increased, the rates increase will still be steep.