Business owners in Wales are being urged by a business rating expert to take action before the summer holiday season to ensure they are not charged the wrong amount when a massive revaluation is brought in.
Steve Plowman, Rating Director at Colliers International, who covers South Wales, is concerned that many business people think they still have plenty of time to deal with the changes that will be made in the forthcoming 2017 Revaluation, and have not realized that draft rateable values will be published in a matter of months.
“The key date that owners of any type of business need to keep in mind is 30 September 2016,” he explained.
“This is when the Government will be publishing a draft list of valuations for the the 2017 Revaluation, which will affect all business owners who occupy a premises.
“With the summer holiday season coming up it is advisable that business owners take action now so, they do not return to work after their break and find they have just weeks in which to review their present rateable values.”
The new business rates that will cover 2017-2022 will be based upon rent levels in 2015. At present, business rates are based upon 2008 rental levels under rateable values introduced in 2010.
Steve Plowman said: “All business owners and occupiers should review their current 2010 Business Rates assessment if they have not done so already, as Current Rateable Value will have an impact on companies’ business rate liability for 2017 – 2022.
“The last revaluation was in 2010, and the 2008 rental levels used largely covered the period before the property market crash, which has meant many businesses are paying higher rates than they should.
“However, it will only be possible to get an accurate picture when draft rateable values are published in September 2016, and it is essential that business owners ensure they are paying the correct amount now to ensure they get the transition correct.”
Under the current system, business rates are recalculated every five years, but in 2013, the Government announced it would delay the 2015 revaluation which would have resulted in thousands of businesses nationwide receiving a reduction in their business rates bill.
Colliers has been calling on the Government to consider three-yearly revaluation in order to produce a more accurate rateable value, and to reduce the need to appeal.
Steve Plowman added that in addition to new rateable values, business owners also faced having to deal with a new rating appeals system, and a new method of calculating rates locally whereby councils set their own rates in the pound.
“After years in which the rating system went unchanged, businesses owners face having have to contend with a host of changes,” he said.
“The best way to approach this is by being well-prepared. We are seeing this happen among larger businesses, but it is a matter of concern that so many smaller companies do not seem to be ready.”