It’s April and one question you might be asking yourself is “Where is my rates bill?”
The answer could be that the myriad changes imposed on your council have taken their toll and the software updates have resulted in delays to getting bills out. This may have knockon effects for the bill payer, with your 12 month collection option may be shortened to 11 or even 10 payments. Make sure you allow for this by having an estimate ready for your personal budget. Another big issue could be that your pub has been pushed into being liable for rates payments for the first, or in a long time. Remember, the important thing is not to panic. Ask the questions you have and make sure you have the correct bill for the correct amount. The BII is here to answer those questions and to point you towards reliable help, if it is needed.
Why has my rateable value increased so much when my profit is falling?
Business rates are liabilities calculated for a property tax system imposed on all commercial property. Pubs are based on Fair Maintainable Trade and rental percentages. Your old figure (2023 to 2026) was based on trade from 2019, minus the Covid effect, while your new figure 2026 to 2029 is based on turnover NOT PROFIT from 2024. It’s no surprise that there is so much confusion and uncertainty over rateable values and rates bills.
Why is the 2026 rateable value relevant when my rates bill seems to be frozen from last year?
Some valuations go down, others stay roughly the same, and some go up by a limited amount. Please refer to your individual rates bill and seek advice from the BII, if you are still worried. Rateable value can have a bearing on your water rates, TV subscriptions and other bills you pay — not just your business rates.
Can I make an appeal to get this rateable value lowered?
Yes, you can, although the outcome of any challenge is not certain and it is to be remembered that the BII recommend using a Trusted Partner, Accredited Advisor or reputable rating surveyor to help you. There are many “ambulance chasers” operating in the market, who may not represent your best interests. Advice can be sought from the BII and the helplines for independent guidance — and always use a reputable agent to assist you.
What does the future of ratings hold for public houses?
At the moment, there is a degree of uncertainty beyond April 1, 2029, but this should be ringed by the light of hope that a revised system could prove fairer for all publicans and underpin the future of the pub in our communities, instead of crushing our young people’s job prospects and removing so much experience from the hospitality fortress.
