Small business owners such as barbers should keep their business property values up to date to ensure they are paying accurate business rates. Photo credit
The UK government’s Valuation Office Agency (VOA) has issued a warning to businesses about false claims regarding the deadline to appeal their 2023 business rates. Some agents are falsely stating that the deadline is June 30th, which is not true.
Businesses generally have until March 2026 to challenge their property valuation on the 2023 list. The VOA urges businesses to be wary of any agent who:
- Pressures them to make quick decisions or sign contracts
- Makes claims about ‘unclaimed credits’
- Claims to be acting on behalf of the VOA
- Demands large upfront payments
The VOA highlights that most agents are reputable and provide valuable services, but a small minority engage in bad faith practices. They encourage anyone with evidence of poor agent behaviour to report it to ccaservice@voa.gov.uk.
When might a small business owner challenge their property valuation for business rates? Here are several reasons:
- Inaccurate Valuation: The Valuation Office Agency (VOA) assesses the rateable value of commercial properties. If the owner believes the assessment is too high, it could result in paying excessive business rates. A challenge can lead to a reassessment and potentially lower rates.
- Changes to the Property: If the property has undergone significant changes since the last valuation, such as renovations, extensions, or changes in use, the rateable value might no longer be accurate. An updated valuation could reflect these changes and potentially impact the rates.
- Economic Changes: Economic conditions can fluctuate, affecting the rental value of properties. If a property’s market value has decreased due to economic downturn, it’s reasonable to challenge the existing valuation and potentially secure a reduction in business rates.
- Comparable Properties: If similar properties in the area have lower rateable values, a business owner can use this as evidence to support their challenge. Demonstrating inconsistencies in valuations can strengthen the case for a reassessment.
- Financial Hardship: High business rates can put a strain on small businesses, especially during challenging economic times. Challenging a valuation and securing a reduction could provide much-needed financial relief and help sustain the business.
Important Note: It’s crucial to gather evidence and build a strong case before challenging a property valuation. You can do this by researching comparable properties, documenting any changes made to the property, and seeking professional advice from surveyors or rating advisors.
The government provides a process for challenging business rates valuations. You can find more information and guidance on the government website:
- Check and challenge your business rates valuation: step by step: https://www.gov.uk/guidance/check-and-challenge-your-business-rates-valuation-step-by-step
