Check your business rates are not too high

Business rates can represent a significant overhead for UK companies, especially in the current economic climate. Many business owners pay their bills without questioning whether the valuation is actually correct—but here’s the thing: there’s a formal process to challenge it, and getting it wrong could cost you thousands annually. At Severn Accounting, we’ve helped Worcester-based businesses recover overpaid rates, and we want to walk you through what you need to know.

Understanding Your Business Rates Bill

Business rates are calculated by your local authority based on the rateable value of your property. This value is assessed by the Valuation Office Agency (VOA), an independent government body. The rate you pay is then set by your council and applied to your rateable value using a multiplier (which changes annually, set by central government).

For the 2024/25 tax year, the standard multiplier is 51.2p in the pound, with a small business multiplier of 49.9p for eligible properties. The issue is: rateable values don’t always reflect reality. Properties are normally revalued every five years, but your circumstances might have changed dramatically since the last revaluation. Empty units, lack of parking, poor access, or local market conditions might all justify a reduction.

How to Challenge Your Rateable Value

The first step is to obtain your rateable value from the VOA’s online Check, Challenge, Appeal (CCA) system. This is free and gives you access to your current assessment and comparables. Review it carefully—does it match similar properties in your area? Are the floor dimensions accurate?

If you believe it’s too high, you can submit a challenge through the CCA system. You’ll need supporting evidence: comparable property data, details of any physical defects, market rental evidence, or photographs highlighting issues. The VOA takes these challenges seriously, and many result in reductions.

Timing matters. If your property was revalued in April 2023 (the last national revaluation), you have roughly 18 months from the valuation date to challenge. Once you’ve submitted, the VOA has about four months to respond. If you disagree with their decision, you can appeal to the Valuation Tribunal—again, free to do.

Common Reasons for Successful Challenges

We’ve seen businesses win appeals based on several factors. Structural defects or poor condition (damp, outdated facilities, broken lifts) frequently reduce valuations. Location issues like inadequate parking, poor accessibility, or being situated above noisy venues also count. Similarly, if your premises are in an area with declining rental values or weak demand, that’s compelling evidence.

One often-overlooked issue is over-assessment of floor space. Check your measured dimensions against what the VOA has recorded—errors do happen, and they can add thousands to your bill. If you’ve made physical improvements that weren’t reflected in the assessment, or conversely if the property has deteriorated, these should be factored in.

What About Small Business Rate Relief?

If your rateable value is under £15,000 (outside London; £19,500 in London), you may qualify for Small Business Rate Relief, which can mean paying nothing at all. Many eligible businesses miss out because they don’t realise they qualify. Check your local authority’s website for the specific thresholds and eligibility criteria in your area—it’s often worth the quick phone call.

Additionally, if you’ve been adversely affected by business rates increases, you might be eligible for transitional relief, which gradually phases in larger increases. Discretionary reliefs are sometimes available too, though these vary by council and are typically aimed at charities and community organisations.

Taking Action

The cost of challenging is minimal, but the potential saving is substantial. Some businesses have recovered £2,000–£5,000 annually through successful appeals. The process isn’t overly complex, though it does require care and supporting evidence.

If you’re unsure about your rateable value or whether a challenge is worthwhile, it’s worth a conversation with your accountant. We can help you assess the evidence, gather comparables, and decide whether pursuing it makes financial sense for your business.

For tailored advice, contact Severn Accounting—we’re here to help.