You will generally be liable to pay business rates if you occupy business premises. Business rates are a tax based on the rateable value of the property, which reflects its rental value at a given date. The rateable value can, however, be challenged.

Jones Granville provides a rating service and general advice on procedures and appropriate courses of action to reduce liability including an understanding of transitional relief and adjustments.

Rating is complex and Jones Granville’s expert advice ensures the best rateable value is negotiated on your behalf. We know the system and our knowledge and experience will help you to save money.

YOUR BILL – HOW IS IT CALCULATED?

Similar to your income tax, it is calculated by measuring:

Income x Tax Rate

For business rates, it is:

Property Value x Rate in £

YOUR PROPERTY VALUE

This is assessed as the Valuation Office’s opinion of the value of your property, currently on 1st April 2015. If your Lease started around that time, it will give a good indication of what the Property Value (called ‘Rateable Value’ or RV) will be on your rates bill. It is more complex than that, but it is a good guide. 

RATES – WILL THEY BE ABOLISHED ANYWAY?

Every Government says they want to abolish or change Business Rates since the Layfield Report in 1974. No one does, for one simple reason: the collection rate is over 98% yielding £26bn a year. That’s because it’s a tax on buildings which don’t disappear easily, unlike moveable assets or people (the income tax collection rate is below 94%)

Winston Churchill once said about democracy that “it is the worst form of government, except for all the others” This is true of the current rates system. So, whilst the Government wants to get rid of the system, the Treasury is not keen to give up such an easily collectable tax. 

NEXT STEP

Email Gareth or Konnie and we will track your Rateable Value to help you budget for future bills and hopefully reduce the bill itself.