1. Understanding Business Rates
Business rates are a tax on non-domestic properties, such as shops, offices, warehouses, and factories. They are calculated based on the property’s rateable value, which is determined by the Valuation Office Agency (VOA) in the UK. For many businesses, this is a significant expense — making it essential to explore ways to reduce these costs.
2. Check Your Rateable Value for Accuracy
An incorrect rateable value can lead to overpaying. You should:
- Verify property details with the VOA.
- Check if size, layout, or usage has changed.
- If errors are found, request a reassessment.
3. Apply for Small Business Rate Relief (SBRR)
If your property’s rateable value falls below a certain threshold, you may qualify for:
- 100% relief for the smallest properties.
- Partial relief for slightly higher rateable values.
Eligibility and thresholds vary by region in England, Wales, Scotland, and Northern Ireland.
4. Explore Other Relief Schemes
Depending on your circumstances, you may qualify for:
- Rural Rate Relief for businesses in small rural communities.
- Charitable Rate Relief for registered charities.
- Enterprise Zone Relief for businesses in designated growth areas.
- Retail, Hospitality, and Leisure Relief for eligible sectors.
5. Appeal Your Business Rates
If you believe your rateable value is too high:
- Gather evidence of comparable properties with lower valuations.
- Contact the VOA to discuss your case.
- If necessary, submit a formal “Check and Challenge” appeal.
6. Consider Temporary Reductions
You may qualify for temporary reductions if:
- Part of your property is unusable due to repairs or renovations.
- Your business has been affected by unforeseen events such as flooding.
7. Sublet Unused Space
If you have unused space, renting it out may reduce your rateable value or help offset your rates bill through extra income.
8. Relocate to a Lower-Value Area
If rates are disproportionately high in your current location, moving to a property with a lower rateable value can significantly cut costs.
9. Use Professional Rating Advisors
Specialist rating surveyors can assess your situation, check valuations, and negotiate on your behalf — often working on a “no win, no fee” basis.
10. Keep Up to Date with Government Announcements
Business rates policies change regularly. Staying informed ensures you take advantage of new reliefs and temporary reductions as soon as they’re introduced.
Frequently Asked Questions
Q1: How often are business rates reassessed?
In England and Wales, revaluations currently take place every three years.
Q2: Can I reduce my business rates if my revenue drops?
No, business rates are based on property value, not turnover — but you may qualify for certain reliefs.
Q3: Is there a cost to appeal business rates?
There’s no charge for submitting an appeal, but professional advice may have associated fees.
Q4: Do home-based businesses pay business rates?
If you work from home and use a significant portion exclusively for business, you may need to pay business rates.
Q5: Can I get a refund if I’ve overpaid?
Yes, successful appeals or reassessments can result in refunds, sometimes backdated.
Q6: Are business rates the same across the UK?
No, rates and relief schemes vary between England, Wales, Scotland, and Northern Ireland.
Conclusion
Knowing how to reduce business rates can save your company significant money each year. By checking your rateable value, applying for available reliefs, considering appeals, and seeking professional advice, you can ensure you’re not paying more than necessary. Staying proactive is key to keeping this major expense under control.