In April 2023, new rateable values came into effect for businesses. These updated values are used to compute business rates bills, which are then issued by local councils. However, as businesses can challenge their valuation if they think it is incorrect, some rogue agents have been submitting inaccurate information, resulting in penalties or increased rates. The Valuation Office Agency (VOA) advises businesses to be cautious of agents who promise big reductions in business rates, which are often based on incorrect information.
Alan Colston, chief valuer at the VOA, said that while the vast majority of agents are reputable and provide excellent services, a small number makes dubious claims resulting in poor quality submissions using the VOA’s online Check and Challenge service. To avoid this, he recommends that businesses conduct their own research before appointing an agent and choose their own agent instead of letting an agent choose them. Mr. Colston also highlighted that businesses can manage their business rates themselves by creating a Business Rates Valuation Account on the GOV.UK website.
To help retailers who wish to use agents, the VOA designed a checklist, which includes:
– Checking the background of an agent before signing a contract, as anyone can call themselves an agent;
– Making sure an agent is a member of a professional body, such as the Rating Surveyor’s Association (RSA), Royal Institute of Chartered Surveyors (RICS), or Institute of Revenues, Rating, Valuation (IRRV);
– Checking the length of a contract before signing, as rogue agents have been known to tie businesses into costly, long-term agreements;
– Fully understanding the services the agent provides and avoiding agents that pressure businesses to sign or demand significant upfront payments;
– Familiarising oneself with the VOA’s Check service and creating a Business Rates Valuation Account to manage one’s property and review communication between the VOA and the agent;
– Remembering that it is the business’s responsibility to ensure that the information the agent submits to the VOA is correct.
The RICS spokesperson stated that businesses should only take business rates advice from a member of at least one of the three recognised bodies – RICS, IRRV, or RSA. Before signing a contract, the spokesperson recommended checking membership with the appropriate body and referring to the joint RICSIRRVRSA Rating Consultancy Code of Practice, which members of these bodies are required to follow. More information can be found on the RICS website.
In conclusion, businesses that challenge their valuations should thoroughly research the agents they wish to employ to ensure that they are a member of a recognised professional body and have an excellent reputation. By taking these steps, they can avoid being tied to costly contracts and submitting inaccurate information that could result in penalties or increased rates.