One of the biggest overhead costs for any business, large or small, is their business rates as this can be around 50% of the annual rent on a commercial property! The tax system is extremely complicated and for many business owners, they would simply rather pay someone to take care of the business rates management and leave them to focus on the day to day running of their business. By doing this, you will ensure that you are not missing out on reduced business rates and other opportunities to save some cash. Below, we have listed a few of our top business rates tips that you can try and implement to save some cash!
What Are Business Rates?
For those of you are not familiar with business rates, this is essentially a tax imposed on business properties. The amount of tax that a business pays is set by the government and the local authorities collect this money from you. This is a form of council tax and is a way for businesses to contribute towards the cost of local services.
Simple Steps to Reduce Business Rates
There are a few key steps that you can take which can potentially help you to reduce your business rates and also ensure that you are definitely paying the correct amount and are not being overcharged. If you want to qualify for a business rate reduction, you will need to check the following.
The first simple and easy step that you can take is to look at the rateable value. Does this match your annual rent? If it does not, then you may want to query this! However, you will need to remember that the estimated rent value is fixed two years in advance, so you may need to allow for some adjustments. You will also want to look into the summary valuation which is attached to your rating assessment entry on the rating list. You should be looking to make sure that the areas that you have been valued on are right.
The next step is to look at the valuation reference scheme number that has been used and then check this against the property. They should both match up in terms of location, age and specification. When doing this, you can also look to see if any other properties on the scheme have had a successful appeal. This can give you a good indication of whether your appeal would be successful.
Finally, why not look into getting a temporary business rates reduction? This can tend to be overlooked if you are managing your own business rates, however, if you are facing competition from new businesses opening nearby, there are building works going on or there are road closures, then you may be entitled to a reduction in your business rates. If there are vacant premises in your area, this may also allow for a reduction in business rates.
Use our top tips to try and reduce your business rates today!
