Partner Article

Guy Nicholson shares his expertise on Business Rates

Guy Nicholson is sole Principal of Guy Nicholson Chartered Surveyors, a Ponteland based niche commercial private practice giving expert advice in business rates, lease advisory and property acquisitions. He is considered to be one of the regions leading rating specialists. He has worked in both public sector at the Newcastle Valuation Office Agency and local private sector for commercial chartered surveying firms. He has some 20 years property experience.

In his opinion, many of the regions companies may be missing out on occupational cost savings from Business Rates which in such challenging economic times could run into thousands.

Business Rates

Business rates are often one of your highest annual overheads, typically second only to rent or wages costs. Non Domestic Rates is a tax that must be paid by every business and as such many businesses simply accept the charge without considering what might be done to reduce this expense.
Rate Liability can be a complicated issue as the factors involved can include, Transitional Relief, Transitional Premiums, Supplementary Business Rates (and Business Rates Supplements), Small Business Rate Relief, Rural Rate Relief, as well as allowances such as Empty Property Relief, Charitable Relief, and Section 44a Allowances.

Rateable Value

Even though there are many factors that make up your rate bill, the basis of the charge is dependant on the Rateable Value (RV). Every non-domestic property has a Rateable Value which can be appealed at any time between 1st April 2010 and 31st March 2015. There is a rating revaluation every five years.

In most cases only one appeal* is permitted in each revaluation period so it is advisable to use an experienced rating specialist.
* The Valuation Office Agency will only accept one appeal for any one event occurring in the life of the rating list (i.e. the five year period). The revaluation itself is classed as an “event” and therefore only one appeal will be accepted against the Rateable Value as at 1st April 2010 on the grounds that it is incorrect. Subsequent events, such as a Material Change of Circumstance effective after 1st April 2010 may also be appealed but again, only one appeal for any one event will be accepted. Once an appeal is accepted it must be either settled or withdrawn so it essential that you have an experienced rating specialist acting on your behalf who will be able to progress the appeal to the most favourable conclusion.

Business Rates set to increase in 2012

The high inflation rate for September 2011 will result in bigger Business Rates Bills in April 2012. Inflation of 5.6% means that ratepayers will face the biggest increase in rates payable for over 20 years.

Many groups have lobbied government to address this, but the Chancellors response in his Autumn Statement will be a little disappointing as the increase will still go ahead.

However, ratepayers will be offered the opportunity to defer 60% of the increase and pay back the deferral over the following two years.

The Autumn Statement brings better news for Small Businesses as the Small Business Rates “Holiday” has been extended for another six months.
Business Rates continue to be one of the biggest expenses a business can have and the rules relating to the amount payable are increasingly more complicated. This makes it even more important for all ratepayers to seek advice from a Chartered Surveyor and Business Rates Specialist.

This was posted in Bdaily's Members' News section by Guy Nicholson .