Just weeks left to contest old business rates

03-Mar-2010 - Last updated on 28-Aug-2011 at 08:37 GMT

Companies have until the end of this month to lodge an appeal against the amount they have paid in business rates over the last five years, which in...

Companies have until the end of this month to lodge an appeal against the amount they have paid in business rates over the last five years, which in some cases could lead to refunds worth thousands of pounds.

The Valuation Office Agency (VOA) has set the deadline of March 31 for companies to contest the amount they have had to pay since April 1, 2005, when the current rateable period began.

Appeals can be lodged free of charge and the Forum of Private Business (FPB) believes around 160,000 small businesses have already won backdated reductions in their rates for the period.

The FPB says many more companies may be eligible for a reduction without realising it and says there are two key areas which could help a business win a rate rebate.

First, it could show it is paying more than neighbouring properties - the VOA's website (www.voa.gov.uk) allows business owners to find out what neighbouring premises pay and whether or not they have appealed against the amount.

Or it could try and prove there has been a 'material change' in its circumstances since 2005, for example, streets being closed off due to roadworks; a high proportion of empty shops or a change in the size, or use of the claimant's premises itself.

The FPB's business rates adviser, Andrew Bacon of LeaseholdersUnited, said following the new rates revaluations businesses can make one main appeal for the period April 2010 to March 2015.

"But they can also appeal against their old valuation by the end of this month if they disagree with it.

"The burden of explaining the details of what is wrong with the valuation is on the person making the appeal. It is therefore important to understand clearly how your rateable value has been calculated and why it might be wrong before making an appeal."

Bacon, who is a chartered surveyor, said the timing of revaluation process had led to a dispute over potentially over-inflated rates costs for small businesses.

"The 2010 rateable value is based on April 2008 rental values - just around the peak of the market. Should low rents agreed in 2009 now be taken into account in setting the correct rateable value? The Valuation Office will probably say no, but it is not that clear cut."

The Publican is supporting a series of business rates roadshows organised by the BII. For more information clicl on the link on the right.