Is your business property in the wrong scheme for business rates?
8 February 2010
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Did you know that if your business premises are on the wrong ratings scheme, you could have been paying thousands of pounds in overpaid business rates for years? If you have, there are only weeks left for you to claim that money back.
Businesses rates are based on rateable values assessed by the Valuation Office.
 
To make their life easy when calculating rateable values, the Valuation Office "groups" together properties that they believe are similar and value them at similar levels, known as a "scheme".
 
The trouble is that the Valuation Office hasn't inspected many properties for over 40 years and uses old file records that are incorrect and puts premises in the wrong scheme.
 
One of the team at our partners, LeaseholdersUnited, has first hand experience of the problem and it cost him £50,000!
 
"We occupied an industrial building that was classed by the Valuation Office as built in 1973 and valued for rating as a 1973 building.
 
This is curious as it was known as the Propeller Factory and made propellers to build Mosquito Aircraft in the 1940s. No one ever told me this, and I only found out by chance in 2000.
 
What had happened is someone from the Valuation Office had visited the premises in 1973 and, as no one had visited since, they assumed that it was built in 1973.
 
This meant I had overpaid rates since 1990 but, as I only found out and told them in 2000 I was not allowed to reclaim the money I had overpaid from 1990-2000. That cost me £50,000."
 
Nick Brown, Head of Marketing, LeaseholdersUnited
 
 
If you are in the wrong scheme and you don't get it corrected before 31 March 2010, you won't be able to claim any refund from 1 April 2005. So now is the time to check.
 
You can find information about your rateable value at the Valuation Office website www.voa.gov.uk. However, this can be difficult work and you should bear in mind that the VOA have targets based on them NOT conceding reductions. But if you find an error that means you should get a reduction, they are duty bound to give it to you.
 
About the author
 
This article was provided by LeaseholdersUnited, an organisation which helps UK businesses to negotiate lower property costs without incurring professional fees. Their business rate section shows you how to look for errors in your rates bills, and how to get your money back without employing a Surveyor.
 
You can get an "independent view" on whether you are in the right scheme, and what to do about it by joining LeaseholdersUnited. They are currently waiving the £150 joining fee for all members of the FPB, find out more here.


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