Businesses face rating confusion from “nightmare” checking system

Adrian Smith

BUSINESSES looking to check their rates liability following the recent round of changes are likely to be deterred by delays and complications built into a “nightmare” of an online system, according to ASRating.

Adrian Smith said the new “check, challenge, appeal” website which is being phased in by the Valuation Office Agency (VOA) could trip up a lot of users with processes which are rigid and time-consuming.

He said many business owners will need expert help to tackle the procedures and, faced with a waiting time of up to 18 months for a response from the VOA, they may decide not to bother.

Adrian added: “Businesses and their agents need to register with the Government Gateway, identify whether they should challenge their assessment and then start the procedure. Then they wait for up to 18 months, and some businesses could fold in that time.”

Under the revaluation process which came to a head in recent months, some businesses received a cut in the rateable value of their property, and some qualified for 100 per cent small business rates relief as the threshold was doubled to £12,000.

Others were hit with sizeable increases, prompting the Chancellor to try and soften the blow with measures in this year’s Budget. AS Rating’s view that the Chancellor’s provisions were inadequate is reinforced by the outline publication of the VOA’s procedures for rectifying faults.

The new rating list came into effect in theory on 1 April but the website is still under construction, with the Royal Institution of Chartered Surveyors warning that completion is not due until late 2018.

Ratepayers who want to check the rating assessment of their properties must register through the Government Gateway, which may involve setting up a new account. They must also register the details of their agent if they decide to appoint one.

A ratepayer who wishes to challenge their valuation is asked to compare their property with others of similar age, size and character in their area. They must also set out why they think their valuation is incorrect. If their challenge is dismissed – or if the VOA has not responded within 18 months – they have the right to appeal to a Valuation Tribunal.

Adrian said: “The new website is the essential tool for businesses to check their valuations and, if appropriate, challenge and appeal. It is complicated and time consuming and has been imposed by the Government, who don’t seem to be aware of the problems it will cause. It is a nightmare and people will find it very difficult to deal with it.

“Some business owners have still not received their rates bills, and those who have may find them inaccurate because the calculations do not allow for the changes in the Budget.”

Specific concerns are that individuals may have to submit their own applications for small business relief, whereas in the past some local authorities made the change automatically. Businesses which face a large increase or decrease could find their calculations thrown into disarray by the transitional system which introduces changes gradually. Some new properties may not yet have a valuation, but the occupiers will still become liable for the full, backdated amount once a figure is set.

Adrian said: “If someone thinks their assessment is incorrect it is up to them to tell the VOA what they think the assessment should be and why. The system will become clogged up and a lot of people may take the view that a challenge is not worth the time it will take, so it is likely to lead to a reduction in the number of challenges.”