Don’t wait until 31 March to challenge your business rates valuation

Businesses are being urged to review their current business rates valuation before the deadline at the end of March, ahead of the new rates which will come into force from 1 April.

This follows widespread calls from businesses, particularly those in the hospitality industry, for reforms to the business rates system, which has been labelled unfair.

For small businesses, this marks an important, but narrow, window to straighten out errors that could otherwise lock in higher-rate bills for years to come.

Why this matters for small businesses

Business rates have been a topic of ongoing discussion among small businesses. In the last Budget, the revaluation of rates was announced and is set to come in from this April.

Business rates have long been a high fixed cost that many SMEs struggle to manage. This is particularly true for RHL (Retail, Hospitality, and Leisure) businesses, which face higher overheads than online businesses due to having physical premises. This imbalance has only been further amplified by the end of the 40% RHL relief on 31 March. 

Going forward, the relief will be replaced with permanently lower multipliers for these sectors, alongside a support package worth billions. The new business rates system will take effect from April 1, which means there will be a major reevaluation of all non-domestic properties.

Those valued at under £500,000 will then pay lower rates, which will be compensated by increased rates for properties with higher rateable values.

Now, the Valuation Office Agency (VOA) is allowing businesses to correct any inaccurate information it holds about business properties, such as their size, layout or usage. This information will be used to determine the revaluation, which in turn will decide which multiplier your property will fall under.

This means that if there’s any inaccurate information held by the VOA that’s left unchecked, it could lead to paying higher rates than necessary.

What businesses need to do now

To check the details on file or request a change, you need to have a business rates valuation account, which requires you to have a Government Gateway or One Login account. 

It can take up to 15 working days to register and claim a business property. This means that if you’ve not already set this up in good time, you may risk missing the 31 March deadline. If you miss the deadline this year, the next revaluation is in three years. So if you think your valuation could be wrong, start the process immediately.

Reviewing the details held by the VOA is the only way to ensure that your business rates bills are accurate and in line with your property. Acting now will make sure that businesses don’t miss the opportunity to access the fairest rates.