There are 1.9 million commercial properties in the UK and historically, these businesses are paying approx. £26 billion in business rates every year. But as many as 50% are estimated to be paying more than they should due to the perfunctory way in which properties are valued. Manchester-based independent rates specialist, RVA Surveyors, is leading the charge to dispel the fog around business rates and support businesses with their rates reduction strategies. Managing Director, Anthony Hughes, tells us more…
“Every year, as much as £1.5 billion is ring fenced to account for businesses that are re-evaluated and paying too much for their business rates . That’s a colossal figure and it gives a real sense of scale to the issue of rebalancing business rates. It’s of course encouraging that businesses could benefit from been incorrectly valued but the hidden truth in this data is that there are a great many more businesses missing out on reduced rates.”
“The biggest challenge when it comes to business rates is the level of misunderstanding and lack of engagement can risk overpayment.”
“Many businesses do not engage in the business rates revaluation process and in the majority of cases, this is due to a lack of awareness. For example, the VOA recently issued a call out to the retail industry after receiving an alarmingly low response from businesses to the re-evaluation process. This lack of engagement from retailers ultimately means that they will likely end up paying inaccurate business rates for their circumstances – especially considering that most retail businesses have undergone major operational changes throughout the pandemic.”
“As with most tax assessments, the business rates system is full of complexities and can be somewhat overwhelming to navigate. Periodically the VOA will compile a new rating list that will stipulate the business rates for a variety of non-domestic properties and this provides a framework from which to calculate a property’s Rateable Value. That seems simple enough but the system expects business owners to know all the elements of their property that contribute to the value , the vast differences from one property to the next and even calculate a change of use. Add to this the potential reductions that many businesses are due in business rates relief, and you immediately have a complicated and unfamiliar system that many businesses can fall foul of.”
“And they do. This convoluted system means that many businesses in the UK are currently overpaying. At RVA, we have found that nearly 50% of the businesses we engage with are paying too much in their business rates. Incorrect valuations have, and always will be an issue. Why else would the Valuation Office Agency set aside approximately over a billion every year for business rates that are re-evaluated and found to be paying too much?”
‘Understanding Check Challenge and Appeal’
“In 2017, the VOA introduced the Check Challenge and Appeal process, and this was intended to make the business rates calculation a far more structured and transparent process. In theory, this is a very positive move for businesses. But it relies on businesses having the time and inclination to follow a formal process of creating an account, supplying identification, claiming the property and understanding the multitude of ways in which their property may have been wrongly valued. This is why having a specialist advisor to undertake this process on a business’ behalf can be invaluable. “
“At RVA Surveyors we have been engaged by over 47,000 commercial properties across England and Wales and our support enables them to navigate the complexity of the business rates system. We don’t charge them for our assistance and expert evaluation; our fee is only due if a reduction or rebate is achieved. And 85% of the time, this is the case . We’re extremely proud of that figure, but it is a sobering figure that demonstrates the sheer prevalence of overrating and overpayment in the business rates system. Only a little over a 1/3rd of all commercial properties have been re-evaluated which means companies need to start fighting back and we can help them.”
Established in 2008, Manchester-based RVA Surveyors employs over 100 people and is the fastest growing business rates reduction specialist, with industry leading success rates and offering no reduction no fee service. RVA is the number one choice for businesses looking to achieve a significant reduction in their business rates liability. Working with a variety of businesses across England and Wales, RVA Surveyors helps to reduce business rates liability for its clients.
ENDS
NOTES TO EDITORS
RVA Surveyors is an independent rates reduction specialist. We act on behalf of business rate payers, whether commercial property owners or tenants, on a no reduction no fee basis. Our independent status means we are solely focused on achieving reductions for our clients. For information on why you should challenge business rates read about it here in an article by RVA Surveyors.
RVA Surveyors have been engaged by over 47,000 UK commercial properties. Our success rate is 85% in achieving a reduction with our client’s business rates liability when we have begun the Check Challenge Appeal and Audit process.