Business Rates

What are business rates?

Business rates are taxes on properties that are used for business purposes. Most non-domestic properties such as offices, shops and pubs will be liable to pay business rates.

They also may be charged where only part of a building is used for non-domestic purposes.

How much are business rates?

Business rates are calculated using the property’s ‘rateable value’ which is the estimated property value on the open market. The property is valued by the Valuation Office Agency (VOA) every 5 years. The last valuation was in 2017 which means that the next valuation will be this year, in 2023.

There is a calculator on the government website that calculates how much you will need to pay however; your local council will send a bill in February or March each year for the following tax year with the exact amount due.

Exemptions?

Certain properties are exempt from business rates such as those used for training or welfare for disabled people, agricultural land and buildings registered for public worship.

Reliefs?

Additionally, some properties may be eligible for relief. An example of this are empty properties which are not liable to pay business rates however, it is important to note that this relief is only up to 3 months. Some properties can get extended empty property relief such as industrial premises and listed buildings.

What could go wrong?

As soon as a property has been sold and possession has been vacated, companies will not be liable to continue paying business rates on that property. However, companies often forget to inform the Council of this which means that they will continue sending bills for business rates as the Council will continue to hold them liable for the business rates on the property.

How could I fight this?

To fight situations like this, proof that the property was disposed of, and ownership was transferred is essential. Additionally, evidence from a director of the company to show the background of the property transfer and what has happened since this point is beneficial.

Refunds will be issued for those who have continued to pay business rates past their liabilities if they are successful.

If you have any queries on business rates then please do get in contact with us using our online contact form, we have vast experience in this area and will be more than happy to assist.