Flint Bishop

Warning over business rates hike

Pictured: Philip Meade

Farmers and commercial business owners in Shropshire are being warned to check their rates notices carefully as some inflated bills are being received in the county.

The warning comes from Philip Meade at Davis Meade Property Consultants who has been acting on behalf of several clients facing hefty rates increases.

"The problems seem to be arising when a business changes circumstances or moves into new premises," he explained.

"We had an instance recently of a small private business moving into premises in Oswestry facing a Rates bill for £4,500. On close inspection we discovered that our client was being charged for the whole three storey building not just the one floor being occupied.

"We appealed and the bill was more than halved, to a more acceptable £2,000," he said.

The key is to double check you are on the level of rates appropriate for the type of business.

"One client who runs a diversified enterprise on a farm was facing a £40,000 rates bill. But on challenging this we were able to point out that half the building he was being charged rates on was still being used for agriculture and therefore exempt, reducing his bill to less than a quarter of the initial assessment" he said.

For farmers who have never paid business rates before it can be quite a shock when suddenly a business  rates bill drops on the doorstep of their new, ancillary enterprise.

"Farms with a farm shop for example will have a non agricultural element and you should ensure that the rates charged is just for the ancillary business, not over the whole farmstead," Philip advised.

Careful analysis of the business is necessary and it might be possible to bring the rates down to small business level so small business rate relief can be claimed. Businesses with a rateable value under £6000 are entitled to 100 per cent rate relief in Wales and a significant reduction in England.

"Rates were reassessed in 2010 and if you are on the 2010 list there is still time to appeal, " he said.

"We compare the rate assessments with comparables on the District Valuer's website after measuring up the premises and breaking  the business down to ensure the right rates are being paid per square metre," he explained.

If you think your rates are excessive, Davis Meade Property Consultants may be able to help on a no win, no fee basis.

"We are prepared to do an initial assessment and if we feel the case is worth pursuing we can proceed on a no win, no fee basis," Philip said.

"Send in your details to us and we can see if there is any merit in appealing."

Philip Meade can be contacted at the Oswestry office of Davis Meade Property Consultants on 01691 659658 or email philipmeade@dmpropertyconsultants.com.

 

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Article published by Midlands Business News on 5 September, 2011

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Articles submitted by Davis Meade Property Consultants:



  • Warning over business rates hike - click to read
  • Time running out to secure development value of land - click to read
  • Tenant groups gain clout at negotiating table - click to read
  • Joint venture offers unbiased advice on renewable energy for farmers - click to read
  • Landlords quit farms for higher returning investments - click to read
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