Page 27 - PWM2025_AUGUST EBOOK

BETTER BUSINESS

ing at £60 /sqm, he says that the which is an adverse finding.
burden is on the business to prove In this regard, Midwinter cau-
its case. tions firms to remember that “a rat-
Regardless, the VOA should com- able value can be increased as well
plete this stage within 18 months
but in practice seem to reach deci- as decreased,” if, for example, the
sions in around 12 months. floor areas of the property are actu-
If, at this point, the sides continue ally higher than in the records held
to disagree, then the matter can be by the VOA.
sent to an independent tribunal for Indeed, Morrish says to “never
an Appeal. Here, as Izett says, “both put your head above the parapet
ratepayer and the VOA present their unless you are sure” of the facts.
respective cases to a panel of lay But beyond this is the perennial
members to decide the correct value
of the assessment”. risk of fraud or bad practice where a
so-called business rates consultant
Options can either charge fees for a non-
Apart from Check Challenge existent service or worse, do such a
Appeal, another route that ham-fisted job that the rateable
Midwinter advocates is to consider value is increased through negli-
if there are any reliefs that can be
applied for. gence.
It shouldn’t be a surprise, then,
Here he explains that “if any area that Midwinter says that when seek-
of the premises is vacant then there ing a review that it’s critical to seek
is the possibility of receiving short- advice from a firm of qualified rating
term vacant rates relief. Also, if the surveyors. In particular, he says to
property is open to members of the
public then the company may be eli- “ensure that they are members of
gible for other [retail] reliefs”. The Royal Institution of Chartered
Izett expands the point and says to Surveyors (RICS), The Rating
ber of reasons, all of which relate to data held by the VOA. “look at small business relief which Surveyors Association (RSA) or
This is where the Check Challenge Appeal process comes into play.
is available and can zero a bill”, but Institute of Revenues, Rating &
Midwinter outlines how the process works. “only if the rateable value is below Valuation (IRRV). Members of
£12,000 and the business occupies a
He says that the initial phase, Check, is to “agree factual matters such as single property”, Izett then notes these bodies have their work over-
floor areas and use of the property”. The second part of the process is the that the relief is tapered between seen and must work to set stand-
Challenge stage where the value (cost in £/sqm) of the property is chal- £12,000 and £15,000. ards.
lenged. Midwinter says that if this can be agreed at Challenge stage then Unfortunately, by definition, this Izett agrees and adds that firms
the process ends there, and any reductions are refunded to the ratepayer. won’t be of use to anything other should “do their homework before
However, he warns that “if a figure cannot be agreed then the final stage is than a very small operator. agreeing instructions; unfortunately
the Appeal to a valuation tribunal for it to determine the rateable value fig- Overall, though, Morrish notes there are a number of rogue agents
ure”. that “local authorities offer very lit-
He says that, in terms of Check, an agent will “inspect the property in tle in the way of discretionary relief out there”.
question to ascertain the floor area, make notes on the standard of the these days.” Morrish thinks the same. He
property and take photos”. He reiterates though, that the rent paid at the And precisely because the whole warns firms to “be wary... if some-
property is also an important factor in determining the rateable value as regime is complex, Midwinter con- body can tell you your property is
are rents paid by comparable properties in the locality. siders it advisable to “take advice over assessed without having under-
Izett says there’s more to consider and adds other factual matters that from a rating surveyor or business taken suitable due diligence – that
may be relevant such as specification, age and so on, “all of which may rates professional to determine is, they’ve inspected, measured and
have an impact on the value of the assessment”. what reliefs your company may be crunched numbers – then they’ll
But where there is a factual error Morrish reckons that “the VOA usu- able to apply for”.
ally sort it out within six months but should be given 12 months to com- have remarkable powers”.
plete”. Be careful Of course, a ratepayer can
As to matters of opinion, Challenge, which Morrish takes to mean, for Any statutory regime is going to attempt to seek reductions them-
example, a building assessed at £80/sqm but which should really be pay- be riddled with traps, the greatest of selves, but they’d be advised not to.

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