A new Government tool allows individuals in England and Wales who pay business rates to easily check their new draft rateable value, and, from this, get an estimate of what their business rates will be from April 2017.
The Government’s Valuation Office Agency (VOA) recently revalued all 1.96 million non-domestic properties in England and Wales. These new rateable values are based on the rental value of properties on 1 April 2015, and will be used to calculate business rate bills from 1 April 2017.
The news has been welcomed by business groups, but some have also raised concerns about the new system since certain businesses could face a significant hike in their rate.
Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), said: ‘This review has been delayed by two years and means small businesses have been paying rates based on 2008 valuations which are now out of date.
‘Many businesses across the country will be getting some relief from years of overpayment or see their rates remain steady. In other areas, there will be a big jump between the old valuation and the new one. To avoid such big discrepancies in payments, we believe more frequent valuations are necessary.’
Transitional relief plans recently announced by the Government include spreading the tapering over five years and having a new band for medium businesses.
The new VOA tool can be found here: www.gov.uk/correct-your-business-rates
Tools for calculating business rates in Scotland and Northern Ireland can be found on the relevant Government websites.