Challenging a business rates bill

Question
Can I challenge my business rates bill?

Yes, you can challenge your business rates bill, and there are several routes depending on what exactly you are disputing. It is worth understanding the distinction between challenging the rateable value of your property and challenging the bill itself, as these are handled by different bodies.

Challenging the rateable value:

The rateable value is set by the Valuation Office Agency (VOA) and is the figure used by your local council to calculate your bill. If you believe the rateable value is wrong, you can challenge it through the VOA's "Check, Challenge, Appeal" system, which has been in place since April 2017.

1. Check. You first verify the details the VOA holds about your property. You do this by creating an account on the VOA's online portal. If the factual details are wrong, for example the floor area or the type of property, you can ask the VOA to correct them. If the VOA agrees the facts are wrong and this changes the rateable value, the matter may be resolved at this stage.

2. Challenge. If you still disagree with the rateable value after the Check stage, you can formally challenge it. You need to explain why you think the value is wrong and propose an alternative figure. The VOA will consider your challenge and respond. This stage can take some time.

3. Appeal. If the Challenge does not resolve the matter, you can appeal to the Valuation Tribunal for England (or the Valuation Tribunal for Wales if the property is in Wales). The tribunal is independent and will hear your case. There is no fee for lodging an appeal with the Valuation Tribunal for England.

It is important to note that the current rating list is the 2023 list, which took effect from 1 April 2023 based on rental values as at 1 April 2021. If your property's circumstances have changed materially since that valuation date, or if comparable properties in the area have lower rateable values, these can form the basis of a challenge.

Challenging the bill itself:

If your dispute is not with the rateable value but with the bill your council has issued, for example you think you are entitled to a relief or exemption that has not been applied, you should contact your local council's business rates team directly. Common reliefs include small business rate relief, charitable relief, empty property relief, rural rate relief, and various discretionary reliefs. If the council refuses to apply a relief you believe you qualify for, you can request a formal review and, if necessary, pursue the matter further.

If you believe the council has made an error in calculating the bill, the council is obliged to correct it. If you cannot resolve the matter informally, you can make a complaint through the council's complaints procedure and ultimately to the Local Government and Social Care Ombudsman if the council has acted with maladministration.

Practical considerations:

You should be aware that while a challenge or appeal is ongoing, you are still required to pay the business rates as billed. Failure to pay can lead to enforcement action, including liability orders in the magistrates' court. If your challenge succeeds and the rateable value is reduced, you will receive a refund or credit for any overpayment.

It is also worth considering whether instructing a rating surveyor or business rates specialist would be helpful, particularly if the property is high value or the issues are complex. Some firms operate on a no-win-no-fee basis, but you should check carefully what fees and terms apply before engaging anyone.

One further point: be cautious of unsolicited approaches from firms offering to reduce your rates. Some are legitimate, but others charge significant fees or take a large percentage of any saving. Always check credentials and terms before signing anything.

If you can share more detail about what aspect of your bill you want to challenge, I can give more tailored guidance.

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