This briefing note on business rates is in response to interest from local businesses in the recent revaluation of non-domestic properties and the impact on business rates bills.
Revaluation of non-domestic properties
The recent revaluation of non-domestic properties by the Valuation Office Agency (VOA) across the country is due to take effect from 1st April 2023. In some cases, the rateable value (RV) of properties will go up but in others the RV may go down or remain the same. The RV is based on an estimate by the VOA of your property’s open market rental value on 1st April 2021 for the 2023/24 tax year.
How do I find the RV of my property?
You can check this the RV of your property on the Gov.uk Find Business Rates page.
This website also explains how the rateable value of your property and your business rates bill were calculated.
What will be the effect on my bill and what support is available?
In some cases, there may be no change in your bill. In other cases, your bill may be going up.
You can get supporting small business relief from 1st April 2023 if both of the following apply:
- your business property’s bill is going up after the next revaluation takes effect on 1st April 2023
- you’ll lose some or all of your Small Business Rate Relief or Rural Rate Relief
If you’re eligible, your bills will go up by no more than £600 for the 2023/24 tax year.
If you have a retail, hospitality or leisure property you may be eligible for a business rate discount. From 1st April 2023 to 31st March 2024 the discount is 75%.
For those that are not eligible for Small Business Rate Relief, transitional relief should be available for up to three years.
What should I do if I think I am eligible for support?
In most cases, you will not need to do anything – the necessary adjustments will have been made to your bill automatically. These adjustments will be made clear on the bill for 2023/2024. But if you are in any doubt or worried about the impact on your business of an increase in your bill, then help is available.
Where ratepayers have had an increase, the Business Rates Team are always willing to discuss a revised payment arrangement as well as making sure that any relief that you are entitled to can be given.
Please note that from 1st April, the new Somerset Council will be taking responsibility for business rates. In fact, your 2023/24 bill will have been sent out in the name of Somerset Council. However, the Business Rates Team that you will have been used to dealing with will continue to administer Mendip area ratepayers.
Contact: mendipbusinessrates@secure.capita.com
This email address will be live after 1st April when the new Somerset Council is operational.
What can I do if I think the RV of my property is wrong?
You can check and challenge your property’s rateable value if you think it’s wrong.
A step by step guide to challenging your valuation
The deadline for appeals against the business rates tax paid since 1st April 2017 is 31st March 2023. The new valuation can only be challenged after 1st April 2023, which is when the new valuation legally takes effect. You must continue to make payments of your business rates as normal in the meantime.
Before submitting a challenge, you can contact the VOA to discuss your rateable value and why you think it is wrong. They may be able to resolve your query.
To contact the VOA:
- fill in the contact form
- call 0300 050 1501
What help is available?
Website: www.somerset.gov.uk/businessrates
Enquiries: You can send enquiries and documents to the Business Rates Team at: mendipbusinessrates@secure.capita.com
This email address will be live after 1st April when the new Somerset Council is operational.
Business advice: free business advice is available at: Heart of the South West Growth Hub
