Insight \u00b7 Cost reduction

Business rates UK: how to check and reduce your bill

Business rates are a tax on non-domestic property in the UK. For businesses with offices, warehouses or shops they are often one of the largest fixed overheads after rent and wages. Because the bill arrives from the council, many finance teams treat it as fixed. It is not always. This guide explains how the bill is built and where it can be reduced.

By Matt Buckley

How business rates are calculated

In England and Wales the Valuation Office Agency sets a rateable value for each property, broadly its estimated annual rent on a set valuation date. The council multiplies that rateable value by a multiplier set by government, then applies any reliefs. Scotland and Northern Ireland run separate systems with their own assessors and rules.

Where the bill can be wrong

Errors usually come from the property record rather than the tax rate.

  • Floor areas measured incorrectly or out of date
  • Parts of the property no longer occupied or used differently
  • Two properties that should be assessed as one, or the reverse
  • Reliefs that were never applied for

Reliefs worth checking

Reliefs change with each budget, so check the current position on GOV.UK. Common ones include small business rate relief, relief for empty property for a period after it becomes vacant, charitable relief and sector reliefs. Relief is not automatic in every case; many require an application to the council.

Check, challenge, appeal

In England the formal route is Check, Challenge, Appeal through the VOA's online service. Check confirms the facts about the property. Challenge disputes the valuation with evidence. Appeal goes to an independent tribunal. Be wary of firms that cold call offering guaranteed rebates for an upfront fee.

Business rates as part of a cost review

We look at rates alongside facilities, energy and property costs, because the same decisions drive all of them. Giving up an unused floor can cut rent, rates, cleaning and energy at once. See our cost reduction consultants page for how we scope a review.

Frequently asked questions

Can I reduce my business rates?

Sometimes. Check the property details held by the VOA, apply for reliefs you qualify for, and challenge the valuation if you have evidence it is too high.

Does Caventis run rates appeals?

We review rates as part of an overhead cost review and work with specialist chartered surveyors where a formal challenge is justified.

References

Every figure cited above is drawn from the independent sources below. Numbers in square brackets in the text link to the matching source.

  1. Business rates — GOV.UK
  2. Business rates relief — GOV.UK
  3. Check and challenge your business rates valuation — GOV.UK

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