Rogue business rates agents hit disgruntled pubs
Licensees still need to be wary of rogue agents offering to appeal their business rates.
The companies telephone a pub and offer to get its business rates reduced in return for a flat fee of up to £600.
Many of these operators do not have the necessary expertise to launch an effective appeal on behalf of a licensee. Also, many take the money and fail to make any application at all.
The new system, which was introduced last year and set the rates payable for the next five-year period, saw substantial increases for some premises. Many pubs found that their rates spiralled after the revised bills were issued on April 1, 2005 - in some cases by as much as 30 per cent.
Licensees who want to lodge appeals against their set rates have been able to do so since April 1, 2005. However, those licensees who are concerned about this should only seek advice from agents who are members of the Royal Institute of Chartered Surveyors (RICS).
The Valuation Office Agency (VOA) - the organisation responsible for the business rates review - advises businesses to talk directly to its own officers, as it does not cost anything for a business to make an appeal itself.
Business rate payers can also access a new website which offers advice and information and brings together everything that licensees need to be aware of, and could help if you are considering an appeal. Go to www.mybusinessrates.gov.uk. In addition, information on rateable values is also available on the VOA's own website www.voa.gov.uk.
Advice from the VOA
- Beware of the hard-sell tactics of telesales or doorstep sales people offering to help you appeal against your business rates. Always ask searching questions before you sign anything
- Take time to probe the terms of any contract you are offered and be aware there may be terms which commit you to a period of service
- Find out if the agent is able - and willing - to put you in touch with satisfied clients
- Be suspicious of any agent who claims to be able to get you a big reduction in your rateable value without inspecting your property and checking your accounts
- Check the credentials of any agent who claims to be a member of a professional rating body.
Grounds for appeal
The rateable value of a property reflects its value on a specified date. A change in circumstances can bring grounds for a rate reduction, such as:
- A change in occupation
- Physical alterations to the property
- New competition affecting trade
Or temporary reductions due to circumstances:
- Refurbishment of the property
- Building construction in the local area
- Roadworks, diversion or temporary closure
For more information go to www.voa.gov.uk
