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!
