As Business Rates are linked into the rise of RPI, many businesses are facing increases compared with decreases in turnover, particularly leisure operations, such as restaurants and takeaways. As the Government has postponed the next Rating re-valuation until 2017, these businesses will continue to pay rates based on pre-recession turnover figures for 2007/8, when business was far more lucrative.
“One may, though in the interim, succeed in a rating reduction if you can prove that external changes in the locality have affected turnover. For example, a new development may have attracted custom away from a more established location reducing customer footfall” says Marcus Andrews of Goadsby Surveyors.
Other events could also see a short term reduction or ‘nil’ figure. It could be significant Public Work lasting more than 6 months or during refurbishment work, say at a pub, which forces it to close.
The key thing is to log the impact the external change or Work has on turnover as evidence to support your claim.
The final advice is to act early, there is around ¼ of a million outstanding rating appeals with the Valuation Office, some even dating back to the 2005 List. “In my experience” says Marcus Andrews “rating appeals can take up to a year to be processed and negotiated, and in the interim, the rate payer carries on paying the ‘high’ rates bill”.
