Member Article

Check business rate before 31st March!

In a little publicised change to the business rate appeals process, communicated only in the wider documentation of the autumn statement 2014, swathes of business owners stand to lose their right to access five years’ worth of business rate overpayments owed to them.

Following a government change to the rules surrounding the back dating of refunds due for overpayment of business rates, business owners who fail to log a ratings appeal before the 31st March 2015 will only receive rebates for successful appeals that are backdated to the 1st April 2015.

In simple terms, if you fail to check your business rates and log an appeal before the 31st March 2015, you will only receive a rebate for the two year period of 1st April 2015 to 30th March 2017 for a successful appeal. This is in contrast to a refund of overpayment for the full seven year period of the current effective rating that presently applies to successful rating appeals.

David Pearce, Chartered Surveyor and RICs registered valuer for Kempton Carr Croft comments:

“Business owners are already stretched financially in a recovering commercial market. Many are stuck paying excessively high business rates due to an out dated rating system that takes historical rent levels into account. We’re urging all business owners to check they are paying the correct business rates well before the 31st March 2015 deadline or to instruct a rating professional to advise you to ensure you don’t miss out on any financial rebates owed to you.”

Rate payers can appeal against the value shown on their bill if they believe it is wrong at any time a rating is in force. Rating appeals can continue to be made after the 1 April 2015 but any changes that result from the appeal will only be backdated to an earliest date of 1 April 2015.

For help or advice on the change outlined above, checking business rates or submitting an appeal, our Chartered Surveyors are on hand to assist. Please call 01628 771221 and speak to David Pearce, BSc, MRICS or Nathan Hall, BSc, MRICS.

Further business rates information:

Business rates are one of the biggest overheads for businesses behind wages and rental costs. The current ratings were set in 1 April 2010 and are due for renewal on 1st April 2017. All non-domestic property, except for those exempt from business rates have a rateable value that determines the amount of business rates payable. Business rates are calculated and set by the valuation office agency (VOA) every five years based on the rental value of a premises. It is intended to broadly represent the annual rent the property could have achieved if rented out on a particular date. The last revaluation came into effect on 1 April 2010. You can check the rateable value of a commercial premises on the valuation office agency website.

This was posted in Bdaily's Members' News section by Kempton Carr Croft .