Business rates reform welcomed
Posted on in Business News , Political News
The Chancellor has confirmed his commitment to carry out the most "far-reaching" and "radical" review into the business rates system in a generation.
The announcement which came as part of the pre-election budget speech, will kick-start a process that leads the way to changes to how businesses across England pay the tax.
It was also confirmed that the government would go ahead with further help on rates including the extension of both the small business rates relief for another year and transitional rate relief to support small business facing significant bill increases due to the ending of transitional rate relief. Retailers will also see roll over for another year of the discount for retailers with properties of less than £50,000 rateable value.
The Government have undertaken a number of reviews of business rates over the last two years including the administration process for rates and a selection of short term measures including targeted reliefs for retail premises and capping annual increases in rates at 2%. The Commitment to a full strategic review of rates represents an opportunity to take a fresh look at the entire business rates system.
ACS chief executive James Lowman said: "We welcome this overdue review, and we are pleased that it will take a look at radical options for reforming the outdated business rates system. The review must deliver help for high streets, be simpler than the current system, and offer incentives for investment rather than penalising businesses which improve their premises."
Are you paying too much?
Despite the fact that business could benefit from a review of how business rates will be calculated in the future, many businesses are actually due a rebate for over-paying rates in recent years.
RatesRecovery have revealed there are more than 1.35million properties that have not appealed their rates yet, and based on previously successful claims there could be about £1billion waiting to be refunded.
If not appealed by 31st March 2015, this refund will not be given.
The cut-off set by the government means occupiers will be denied the right to reclaim rates overpaid between 2010 and 2015.
The current rating period runs until 2017 but if appeals are not made by the deadline of 31st March businesses will only be able to claim for payments between now and 2017.
Martin O'Neill, director of RatesRecovery, said: ‘If you compare it to a personal tax code, it's like the HMRC saying, "Yes, we admit we got your code wrong and have been overtaxing you, but I'm afraid we've just introduced a rule that states we can't pay back your money.'
Five years of overpayment could amount to many thousands of pounds for some businesses, RatesRecovery claims. O'Neill added: ‘Although those that appeal from April onwards will receive their reductions for the last two years of the period, they will lose the right to a refund of overpayment.'
The government currently nets £28billion from business rates a year levied on just over 1.9million properties.
To see if you could be due a refund send a copy of your rates bills to info@actsmart.biz and we will forward it on to RatesRecovery.
ActSmart subscribers will not only receive the refund they are owed but will also benefit from:
- FREE initial consultation
- Save 20% on RatesRecovery's standard fee
- No win, no fee
- Backdated rebate and future savings