Business rates shocker
Partner and head of tourism and leisure, Flora Bennett, takes a look at what the revaluation of business rates will mean for tourism businesses, when it comes into effect on 1 April 2017.
Tourism businesses are very worried about the revaluation in business rates which will take effect on 1 April 2017. Some fear it will put them out of business by wiping out their profit – a client has, in fact, reported a rate increase of over 300%!
The Valuation Office has notified businesses of the revised valuation and suggested they lodge any objection by 30 November 2016.
Business rates are charged by applying a multiplier to the rateable value. This is set at 48pence for 2017-2018.
Small business rate relief may be available where the rateable value is below £12,000. This means that some who pay nothing at present could face a large annual bill if the revaluation takes them above the £12,000 limit.
Should a business cease to trade, the charge will usually still apply after 3 months' relief for empty properties. This could have an adverse effect on the value of the property itself.
- Use the online tool to check your current valuation against your old valuation. Visit: www.gov.uk/correct-your-business-rates
- Calculate the potential charge
- Compare with similar businesses
- Contact the Valuation Office Agency if you are unhappy with the proposed changes
- Appeal the rateable value if the increase is unjustifiable.
Speaking from personal experience, the rateable value of the self-catering apartments on our farm has jumped from £5,200 to £14,000! Guess what? We’ve lodged an objection!