Companies across the UK are set to see an increase in business rates this year, with small businesses bracing themselves for the upcoming rise in costs.
A new survey by the Federation of Small Businesses reveals more than a third (36%) expect their business rates to rise, with nearly half (44%) believing their rates could increase by more than £1,000 per year.
Business rates are a tax on business properties such as offices, shops, pubs, warehouses, factories, guest homes etc. They are charged in proportion to the value of a property, estimated by government surveyors, which means if you run a business in a thriving area where property prices are high, you’re likely to pay higher business rates.
On April 1, there will be a revaluation of business rates where the government will adjust the value of business rates to reflect changes in the property market. The minimum rate at which businesses qualify for small business rate relief is increasing from £12,000 to £15,000.
The government postponed the last valuation from 2015 to 2017 to avoid it clashing with the general election so rate bills are expected to increase markedly.
Business rates that business owners pay is determined by its rateable value, set by the Valuation Office Agency (VOA) . You can check the rateable value for your business property here, and contest changes to the valuation or property details if you think they’re wrong.
Bruton Knowles is an expert on commercial property, and as part of its consultancy service can offer expertise in all areas of the market, including business rates.
For more information about the Federation of Small Businesses Survey, click here.
For help with all your property matters call James Bailey on 0115 988 1160 or email This email address is being protected from spambots. You need JavaScript enabled to view it.