Expert Business Rate Guidance for Retail, Hospitality & Leisure Businesses
We provide specialist advice to RH&L businesses across the country to help determine if a rating appeal could lead to significant cost savings
Many businesses in the retail, hospitality and leisure sectors believe the Valuation Office Agency (VOA) approach to assessing rateable values is flawed, often resulting in valuations that are inaccurate, punitive and disproportionately high. In many instances, this approach appears to conflict with the VOA’s statutory obligations.
While the VOA has a legal duty to value these types of properties, some valuation methods they use are not set out in law. Instead, the VOA relies on internal guidance and sector‑specific valuation practices, some of which have been developed with input from industry bodies, landlord reps and external experts i.e., ratings agents or other valuers.
Many retail, hospitality and leisure business owners feel the VOA is failing to meet its duty to accurately assess rateable values and is instead basing valuations on factors such as actual trading performance rather than objective and fair evidence. This leads to volatile valuations and wild swings in the RV from revaluation period to period.
Looking to challenge your business rates?
THE CHECK CHALLENGE APPEAL PROCESS
The introduction of the Check, Challenge, Appeal process in April 2017 aimed to effectively handle the volume of cases in a transparent manner, enabling ratepayers to make informed decisions on how to proceed.
The 2023 revaluation has been the subject of criticism due to the added requirement for businesses to have a Government Gateway Account, leading to an increased administrative burden. However, RH&L can alleviate this burden by acting as your Agent and handling the complexities of the CCA process on your behalf.
To get started, key facts about the property must be agreed between the VOA, and the ratepayer, or their Agent. This Check case requires us to carefully consider all factual information relating to the property prior to any Challenge against the VOA assessment. The VOA will acknowledge the Check case submission and issue a Check decision notice.
Ratepayers who confirm within four months of receiving the Check decision notice that the property details held by the VOA are accurate can proceed directly to Challenge. The ratepayer or Agent can easily access the confirmation through Government Gateway Account.
After confirming the relevant facts, in order to raise a Challenge case, the rate payer or the Agent will need to submit a comprehensive assessment including a valuation proposal and an evidenced statement. Based on the Challenge submission, the VOA will issue a Challenge decision notice. This Challenge decision notice may result in a reduced assessment if they agree with the proposed valuation.
If the VOA does not agree with the Challenge submission, you have the opportunity to appeal to the Valuation Tribunal (VT).
At the Appeal stage, items that are in dispute are addressed, based on the arguments and evidence that have already been established.
To initiate an Appeal to the Valuation Tribunal (VT), it is mandatory to wait for a Challenge decision notice from the VOA. The appeal must be filed within four months of receiving the challenge decision to request an impartial review by the VT.
In case the matter goes to Appeal, you will have a chance to present your case to an independent panel and question the VOA’s case. The VT should provide a decision 28 days after the Appeal hearing and proceedings.
Before instructing a company for assistance with your business rates check, challenge or appeal, it is crucial to ensure that you are comfortable with the terms they offer.
We are aware of cowboy rating advisors attempting to profit from the revaluation of business rates, and we appreciate the concern many pub business owners may have before engaging with business rate advisors.
If you decide not to engage our services, we recommend business owners thoroughly review the Terms & Conditions before engaging another company or agent to represent their case. Verify if they will charge for savings in future years or for changes that affect the next revaluation. Confirm which rating list the work pertains to and check if the agreement commits you to future revaluations. Determine where any refunds will be sent, whether it is a client account or directly to you.
Please be advised that many rating advisory firms or agents attract clients through ‘no win no fee’ based service agreements, and are seen to be disparaging of firms or agents who choose to charge upfront fees, without a guarantee of success.
While this might appear attractive, please be aware that many ‘no win no fee’ based service providers charge a fee based on a percentage of the total reduction in rateable value achieved. This can sometimes involve a tie-in arrangement, meaning that the business rates advisor may attempt to claim for their fee, based on a percentage of the reduced rateable value, for any reduction in business rates during an extended period, even if they had not contributed to the reduction.
Initiate a Business Rates Review
Before reviewing your rateable value, we recommend having an initial consultation to ensure that we can provide the necessary assistance. We will cross reference your rateable value against our database and interactive map. Our initial consultation is free of charge and done in order to assess how strong your case is, we like to give an honest opinion upfront and you are under no obligation to continue with our services.
Contact us for help with your business rates by clicking the “speech bubble” icon on the right hand-side of the page.