There are a few instances where you may need to challenge your business rate for your commercial property in England or Wales. Whether you’re an office manager, hairdresser, cafe owner, theatre director or manager for a place of worship, the following advice has been gathered to help you out.
Understanding the system is important for business owners in major cities such as London, Birmingham, Leeds, Liverpool and Manchester; unsurprisingly, rates are more expensive in those areas.
When you need to challenge business rates
Below are a few common reasons that may cause you to challenge your business rate for your SME premises.
- Overvaluation – Your rateable value (RV) may be too high or based on outdated data.
- Change in circumstances – Property alterations (e.g. reduced size or new layout) may not be reflected in the RV. Also, external factors, like nearby construction or declining footfall, could lower the value.
- Economic factors – Market downturns or industry changes might make your rates unaffordable. Also, the long-term impact of the pandemic may justify a reassessment.
- Valuation errors – The Valuation Office Agency (VOA) which sets business rates might have incorrect details about your property’s size, use or layout. Also, they might have misclassified (e.g. retail vs. office) your property, affecting your RV.
- Relief and exemptions – You might be missing out on relief for empty or partially vacant properties.
- Transitional relief – Errors in applying transitional relief could result in overpayment.
Check the rateable value
Now you have an idea of whether you need to challenge your RV, go to the VOA website to verify your property’s rateable value, and check for inaccuracies.
Prepare for a long, drawn-out process though! And don’t rush through it – it’s essential to collect the required evidence…
Collect evidence
Gather relevant documents as evidence to submit with your challenge. These can include:
- Lease agreements or ownership documents
- Proof of your property’s size and layout to challenge incorrect VOA data.
- Photographs showing the condition of your property, especially if there’s disrepair or structural issues.
- Details of renovations or alterations.
- Examples of nearby premises with lower RVs. Lease agreements or advertised rents for similar properties in the area are helpful.
- Evidence of roadworks, construction projects, or closures that impact your property’s accessibility or footfall.
- Data or reports showing how market or industry trends affect business viability in your area.
- Evidence of declining revenue or footfall that could justify reduced rates.
- Documentation of your property’s use if it’s changed.
- A valuation professional’s independent assessment of your rateable value.
Submit your challenge
Submit your challenge to the VOA, providing all the necessary evidence to support your case. Log into your Government Gateway account, then submit a check to the VOA, and raise a challenge with this supporting information.
Wait for the outcome
Be patient. The government has a huge backlog of cases, but they will get to your challenge eventually. It’s worth the wait as you might be eligible for a significant rebate like our client who manages coworking spaces in London.
Launching an appeal
If you disagree with the outcome of your challenge, you can always appeal. Find out more about the process on the Government website.
To build a successful business that occupies a commercial property, you really need to stay on top of your business rates. If you think you could benefit from some help, contact our team of experts for affordable and free* support: info@propertyadviceservices.co.uk
*We also work in partnership with local authorities, so we can offer services to SMEs in their areas for free. Please drop us an email telling us which local authority area you are in, and we’ll confirm whether or not you are eligible for free support.
