Business Rates

[josor]

Just a few quick questions, I am getting bugged by rate reduction specialists.

How does it actually work?
Can they actually provide a saving?

Or is it something I can do myself to save some pennies?

The rates for the property previously was 10k now 14k they say they could get a reduction on this. Just wondering how and what do they actually do to suposrt this.

many thanks

 

[Chris94]

I think it is something you can do yourself.
TV program a year or so back showed this was a widespread scam (though of course the company contacting you may not be like that)

 

[andygambles]

Ring up the council and ask for information about the small business rate relief. If you have just one property and meet a few other criteria you can get a reduction of up to 50% IIRC.

There is also the ability to get your business rates re-assessed. If you can prove that the rateable value of your property is too high they may reduce it. However this can work in the opposite direction. If they decide the rateable value is too low because you have not been re-assessed for years then the rates obviously go up.

 

[shadesofblue]

Just a few quick questions, I am getting bugged by rate reduction specialists.

How does it actually work?
Can they actually provide a saving?

Or is it something I can do myself to save some pennies?

The rates for the property previously was 10k now 14k they say they could get a reduction on this. Just wondering how and what do they actually do to suposrt this.

many thanks

is 14K your ratable value or what you actually pay? If it's the former you will qualify for small business rate relief which is something you can do yourself.

If your ratable value is over the 20K mark a ratings agency may be able to get you a reduction. Some operate on a no win no fee with payment due once savings have been realised and others request a payment upfront.

If they feel you have a case they will appoint a surveyor to assessor your property and make an appeal on your behalf to the VOA. Again, this is something you're able to do youself but it can be quite complex and if the VOA take a closer look at your property the can raise the value as well as lower it.

So best to use a surveyor who can give you guidance.

 

[KernowQueen]

i would look into doing yourself too, some basic info here on BusinessLink site with links to more up to date info

 

[Billmccallum]

Main elements of the announcement. see http://www.communities.gov.uk/publications/localgovernment/bril062010

BUDGET ANNOUNCEMENT!


Temporary Increase in amount of Small Business Rate Relief Available to Eligible Business Ratepayers​

Key Facts

What is the Government doing?

It is increasing the support available to small businesses who pay business rates. It is doing this by increasing the level of Small Business Rate Relief available to eligible businesses for a temporary period. From 1 October 2010 to 30 September 2011, eligible businesses with a rateable value of up to £6,000 will be entitled to 100% relief on their bill. If your rateable value is between £6,001 and £12,000, you will be entitled to relief on a sliding scale between 100% and 0%.

Who is eligible?

Anyone who is entitled to Small Business Rate Relief and has a rateable value of £12,000 or less will be eligible for the increased level of discount off their rates bill.

When does this happen?

The revised reliefs will apply between 1 October 2010 and 30 September 2011.

Is it worth it?

Yes! The Government's changes will mean that those who, for example, are entitled to a 50% reduction in their rates bill will be entitled to a 100% reduction between 1 October 2010 and 30 September 2011.

Do I need to meet any criteria?

Small Business Rates Relief is available to all businesses whose rateable value is less than £18,000. To qualify for the relief, businesses must apply to their local authority and confirm that:

· the sole or main hereditament they occupy must have a rateable value of less than £18,000 (£25,500 in Greater London) and
· if they occupy any additional hereditaments, each of the additional hereditaments must have a rateable value of less than £2,600, and the total rateable value of all of their hereditaments must be less than £18,000 (£25,500 in Greater London).

Where the rateable value of the hereditament is £12,000 or less, the business is eligible to claim a discount on the rates bill, as well as having their bill calculated on the basis of the small business rate multiplier.

For businesses with a rateable value of between £12,001 and £18,000 (or £25,500 in London), there is no discount, but the business will continue to be entitled to have their rates bill calculated using the small business rate multiplier.

Do I need to do anything?

If you already claim the relief, you do not need to do anything more. Your local authority will calculate your revised payment schedules and write to you later this year.

If, however, you do not already claim the relief (see the criteria listed above), but think you may be entitled to the relief, you should contact your local authority who can advise you on what you need to do.

Can I change my bill payments now?

You must continue to pay your current bills, on the existing payment schedule from your local authority. Current collection and enforcement procedures will continue to apply to ratepayers who miss a scheduled instalment. Your local authority will write later this year to advise of any reductions that might be necessary to your 2010/11 bill. Any changes to your liability that are necessary for 2011/12 will be set out in your 2011/12 bill when that is prepared in March 2011.

When will I find out what my revised bill will be?

The changes need to be agreed by Parliament. Subject to Parliamentary approval, the Government expects that local authorities will be able to issue revised bills for 2010/11 before 1 October 2010.

What if I have already paid too much by 1 October?

If, as a result of the payments you have already paid by 1 October 2010, you have paid an amount greater than any revised bill you are due from the new arrangements, then your local authority will arrange any necessary refund to be made to you.

My rateable value is over £12,000. Do I get any help?

If your rateable value is over £12,000, you are not entitled to a discount within Small Business Rate Relief. However, if your rateable value is below £18,000 (or £25,500 in London), and you are eligible for Small Business Rate Relief, you will be paying your business rates using the Small Business Rate multiplier which is set at a lower level than the general business rate. In these circumstances, there will be no change to your bill.

 

[josor]

thanks for the replies, appreciated.

The ratable value is 14,750, I have small business rate relief as well.

I did appeal some of the costings which they have removed, but it was this compnay saying that I am paying x amount over what I should be on the floor space

 

[Rhodes100]

Again it is easy to check the "scheme" you are banded within comparing to other similar businesses in your area, the information is freely available on the valuation office website.

Approx 41% of all businesses entitled to receive small business rates relief have not applied.

These companies are similar to heir hunters, they simply do what anyone can do because they know that money is being left on the table.

 

[Billmccallum]

thanks for the replies, appreciated.

The ratable value is 14,750, I have small business rate relief as well.

I did appeal some of the costings which they have removed, but it was this compnay saying that I am paying x amount over what I should be on the floor space

If you already have rate relief and already appealed, its unlikely that anyone could get it reduced as the case has already been investigated.

 

[yankee candleman]

I claimed the rates were wrongly calculated on my premises and got them down from RV of £36,000 to £22,000.

Be warned, you need to find out what others are paying first as it can go against you if they have been miscalculated in the opposite direction.

 

[kulture]

There are 4 main points you can raise in an appeal

1 their measurments are wrong. Take a tape measure and check the sq footage. If it is wrong then this is a factual problem and difficult for the valuation office to dispute.

2 You feel that their rate is wrong for the area. Troublesome, your opinion verses theirs. This is where you have to look at the per sq ft rate for your neighbours and see if you are the same or not.

3 You think they have used the wrong scheme in assessing you. Obvious discrepancies like you have been assessed as a shop, and in fact you are offices.

4 There is some physical aspect of your shop that you feel means the zoning (A,B or C) is wrong. E.G double fronted and there is an entrance only on one side. You could try to argue that the other half is outside zone A (the first x feet from the front). Or you may have extended the stock room, or put in a staff room, so these areas should be rated much lower.

So it is always worth checking everything as a previous appeal may not have covered all areas. As others have stated, the RV can go UP if you appeal.