Reducing your Business Rates
Business rates are one of the largest overheads which typically equate to 50% of the annual rent on a commercial property. For the majority of companies, this tax is too complex to understand, which inevitably results in missed opportunities to reduce business rates.
There are a number of important steps a business can take to ensure that it is paying the correct amount and is not overcharged. The majority of information needed will be found on the live rating assessment entry for the property which is held on the Valuation Office Agency’s website. This can be found here.
The initial steps required to determine if you are paying too much as set out below.
- Check the rateable value - remember it is the Valuation Officers opinion of the properties annual rent – does it match the actual rent paid? (Tip- the estimated rent /rateable value is always set at a fixed date two years before the list goes live so adjustments may be needed (i.e., 2023 Rating List – all properties valued to rental market of 1st April 2021)
- Check the summary valuation areas – there is a link within the rating list entry which will take you to the valuation. As you are charged rates based on your area it is important to ensure that these are correct. (Tip, the VOA use different methods of measurement depending on the type of property involved. Before measuring up make sure you are on the right method. These can be found here.
- Review the valuation scheme reference number - check if it matches the age/specification/location of your property.
- Check the other properties on that scheme - see if any have been reduced by a Check or Challenge. (Tip there are three stages to the appeal process, and it is important to know which stage resulted in the successful alteration – (1) Check Stage is only contesting factual matters like areas, (2) Challenge Stage involves contesting the valuation basis and any disagreed factual matters from the previous Check Stage, the final stage is an (3) Appeal to the Valuation Tribunal which can involve all unresolved matters from the Challenge stage).
- Check the Valuation Tribunal website - see if any of the properties on your valuation scheme or which you consider comparable have been reduced as a result of a Tribunal decision. The link to their website can be found here.
- Is there a change in the Locality - if you find your business is affected by a change in the locality such as a competitor stores opening/road closures/building works – then there may be scope to secure a temporary business rates reduction. (Tip- remember you only have one right of appeal so contact the Valuation Office first with reasons why you think the assessment is too high. However, remember that the works need to still be causing a disturbance when you lodge your Check.)
- If you're still not satisfied, then it may be worth getting a professional rating specialist to take this forward. (Tip - most rating advisers work on a success-related fee so there is no upfront cost.)
Track Record
Knight Frank has an excellent track record in helping large and small businesses contest and successfully appeal business rates as well as manage rate payments, mitigating costs as every stage. Contact us for help and advice when it comes to reducing business rates. Our experts will be happy to conduct a full audit and provide recommendations on where we can save you money.
Our services include:
- Full Rate Account management
- Audits on past and future payments
- Full Council Tax & BTR Account Management
- Empty Rate Mitigation Service.
- 360 Review of current rating valuations with full Check & Challenge Service.
- Full representation at Valuation Tribunal Hearings
We advise clients on all property sectors including offices, industrial and retail premises as well as specialist properties such as hotels, theatres, leisure facilities, museums, and power plants.