Business rates FAQs
Q. Am I entitled to a refund in business rates – backdated to 1 April 2005 – and if so, how can I claim it?
 
Andrew Bacon of LeaseholdersUnited.com replies:
 
A. You will generally be entitled to a refund if you can show that your 2005 rateable value is too high. 160,000 firms have already agreed reductions in their 2005 rateable value. But 800,000 firms have done nothing and as a result the CBI estimates that £1.8bn is overpaid each year.
 
A reduction of just 10% on a rateable value of £6,000 can result in a £1,200 refund in rates. And you don't necessarily have to appeal or use an agent to agree a reduction. If you believe that:
  • The Valuation Office has used the wrong facts in calculating your rateable value eg. incorrect floor areas or descriptions, or
  • The Valuation Office has used the wrong ‘rate per sqm' in calculating your rateable value, or
  • Your neighbours have agreed reductions and you should be given the same.
You can just phone the Valuation Office to correct its mistake. But you must do this before 31 March.

You can access a detailed breakdown of your 2005 rateable value at www.voa.gov.uk.
 
About the author
Andrew Bacon is a chartered surveyor at LeaseholdersUnited.com, an online service helping small businesses keep their rent, rates, service charge and building insurance down. 
 
Q. Will the recent fall in property values mean that my business rates will go down when the new Rating List comes into force on 1 April?
 
Richard Smith MRICS, Director of Fifield Glyn, replies:

A. Every five years the Government adjusts Rateable Values for businesses to align the rates levied with whatever changes in property prices have taken place in the commercial market. These are broadly based on rental values around 1 April 2008, so the full effect of the drop in values as a result of the recession may not be reflected in the new Rating List. It must be remembered that the Rating List is meant to correctly apportion between businesses the liability of the rate return to central Government – not the rates payable, which are determined by the Government through setting the Multiplier/Uniform Business Rate.
 
About the author
Fifield Glyn Ltd is a firm of commercial chartered surveyors, property consultants and real estate valuers with offices in London and Cheshire. www.fifieldglyn.com; 01606 351351.