What is he going on about you ask yourself? Well as a family member once said to me mites go up and tights go down and it appears we are now at a point where it’s the same with business rates.
It’s been a busy time the last few years working out what you do and don’t have to pay, as well as what you have been able to claim when it comes to business rates.
There was small business rate relief where if your rateable value was below £12,000 and you met the criteria you could qualify for 100% relief. Then we had small business rate relief where if you had a rateable value below £15,000 you would qualify for a discount however the relief would be tapered with larger discounts being given to those whose rateable value was closer to the £12,000 rather than the £15,000.
Pre covid there were discounts for those in the retail and leisure industry which were further enhanced over Covid and in addition to this there were grants available to those who had a rateable value for their commercial premises but not so much for those in serviced offices paying all-inclusive rentals!
Many feel that the existing system is disproportionate in various ways, where certain parts of the country pay more than others, where industrial premises pay proportionately less than offices, retail and leisure despite generating greater profits and also how retail and leisure have benefitted from support where offices have not in recent times.
Coming full circle now an important thing for both existing business owners with premises and also very importantly for those looking to take new premises is what their rateable value will be, come the 1st of April 2023. Business rates have been re-assessed and the interesting thing is that we are seeing rateable values go both up and down!
From what we have seen it appears that the valuation office has increased the rateable values in stronger performing areas, however, have taken on board that certain locations have not been performing so well and the need to encourage occupiers into those locations which in turn will help encourage customers as well. There will be premises now that previously would have been paying in excess of £6,000 per year in rates or more than have now crept under the threshold and will not be paying any business rates at all!
As such when you are looking at premises right now it’s well worth not only looking at the agent's details which will most likely have the current rateable value but also checking out the upcoming rateable value for April. If your rateable value is borderline it may be that you could be in for a massive saving or alternatively you may need to adjust your budgets if they have gone up!
For the most up-to-date information on Business Rates Valuations, see here
Photo by DC intheCity on Unsplash