When do you pay rates?

[locutus]

I have heard that if you lease a place, and if the rent is less than £12k (approx), rates are not applicable? Is that correct? What about if a unit is sublet, who then pays the rates?

 

[Scalloway]

Who pays Business Rates

https://www.oldham.gov.uk/info/200208/business_rates/955/who_pays_business_rates

 

[kulture]

I have heard that if you lease a place, and if the rent is less than £12k (approx), rates are not applicable? Is that correct? What about if a unit is sublet, who then pays the rates?

This is incorrect in so many ways.
The amount you argree to pay in RENT has nothing to do with what you have to pay in RATES.
The rates are set by the valuation office. If the Rateable Value is below £12,000 AND if this is your only busines property, then you can claim relief which is 100% off the rates bill.

The rates are normally paid by the OCCUPIER, so if you have sub let it then you pay the rates. HOWEVER the lease could say that the landlord pays the rates, and not the occupier. So the landlord pays them. But I would not like to be the occupier in the case where the landlord fails to pay the rates. The link in the previous post explains this in great detail.

 

[scstock]

The amount you argree to pay in RENT has nothing to do with what you have to pay in RATES.

It is supposed to though - "Rateable value represents the rental value of a property if it was let at the standard valuation date"

It bothers me that the rateable value of my premises is significantly less than the that determined by the Valuation Office.

 

[Newchodge]

It is supposed to though - "Rateable value represents the rental value of a property if it was let at the standard valuation date"

It bothers me that the rateable value of my premises is significantly less than the that determined by the Valuation Office.

The rental value and the rent charged are not synonymous.

 

[scstock]

The rental value and the rent charged are not synonymous.

I get that, but surely they should be in the same ball park?

What I meant to say above is that it bothers me that the rateable value of my premises as determined by the Valuation Office is significantly less than the rent we currently pay.

 

[Newchodge]

I get that, but surely they should be in the same ball park?

Hows does the standard valuation date compare with the date you agreed the rent?

 

[scstock]

Hows does the standard valuation date compare with the date you agreed the rent?

Last valuation is dated 1 April 2017. Last lease began 1 August 2017.

 

[Newchodge]

Last valuation is dated 1 April 2017. Last lease began 1 August 2017.

I would have been arguing the rent based on the valuation, then.

 

[pcourtney]

Small Business Rates Relief
Examples
If your rateable value is £12,000, you’ll get 100% off
If your rateable value is £13,500, you’ll get 50% off
If your rateable value is £14,000, you’ll get 33% off

 

[scstock]

I would have been arguing the rent based on the valuation, then.

Yes, I have tried that but they bat it back with variations of "the rental value and the rent charged are not synonymous"

As discussed on other threads on here, at the end of the day in the negotiation you have to be prepared to walk, and that means finding another place that suits your needs and absorbing all the time and expense of moving.