Article: Annual notification of business rates Article Body What are business rates? Business rates, or non domestic rates as they are otherwise known, are a tax charged on business premises such as shops, offices, warehouses and factories and other property not classed as domestic accommodation. Some properties that have a domestic and business use, for example a shop with a flat above, may be charged both council tax and business rates. Rates are collected by Barnsley Council on behalf of central government. They are then paid into a central pool and redistributed back to us on a proportional basis to be used to pay for the local services we provide. If you would like further details on the services provided by the council access the your council tax leaflet. The borough contains around 6,400 properties subject to business rates. Rateable values All properties liable for business rate charges are assessed with a rateable value which is used to calculate the charge. The Valuation Office Agency (VOA), an agency of the HM Revenue and Customs (HMRC), is responsible for determining each value. The VOA has recently drawn up a new rating list for all business properties across the country in accordance with the normal five yearly revaluation cycle. From 1 April 2010 new rateable values have been applied to business properties that broadly reflect the open market rent each would have commanded on 1 April 2008. You can check your own rateable value, make other comparisons and obtain more information about the revaluation on the VOA's website at www.voa.gov.uk/2010. The VOA is required to maintain a local rating list for all properties in Barnsley and may alter property values if it can be shown that there has been a material change of circumstances, such as an extension to the premises or if part of the property is demolished. Rateable values applied for the previous local rating list, and rate charges that ended on 31 March 2010, reflect the rental values of properties dating back to 1 April 2003. Calculation of rate charges Annual rate bills are issued by the council in March each year for charges payable for the following financial year, the period 1 April to 31 March. Amended bills will, where necessary, be issued throughout the year to reflect any changes in circumstances that take place. If you have not received your bill please contact the Rates Office see business rates account enquiries. Rate charges are calculated by multiplying the rateable value set on the property by one of two multipliers, depending on certain circumstances. The multipliers are determined by the government and change each year in line with inflation. The two multipliers comprise of the standard non domestic rating multiplier, where the rateable value is £18,000 and over and the property does not qualify for small business relief and the small business non domestic rating multiplier, where the rateable value is under £18,000 and the property qualifies for small business relief. The appropriate multiplier will be applied to determine the charge. The following multipliers have been set for 2012/2013: the standard non domestic rating multiplier is 45.8p (0.458) the small business non domestic rating multiplier is 45.0p (0.45) This means that in 2012/2013 the rate charges for a property with a rateable value of £10,000 would be £10,000 x 0.458, which is £4,580. The charge for a business with the same rateable value, but subject to the lower small business multiplier, would be £10,000 x 0.45, which is £4,500. Your rate demand notice will show the multiplier used to calculate your charge. The actual amount of the charge could depend on a number of other factors. For example, transitional arrangements which phase in the effects of the five-yearly rates revaluations could apply to the charge. Other factors could also affect the charge if a business is due a reduction through small business relief, charitable and discretionary relief or other exemptions. Transitional arrangements Rateable values of business properties can in some cases change significantly between the five-yearly revaluations and therefore a scheme of transitional arrangements operates to phase in these affects. The scheme applies to both increases and decreases and limits the percentage amount by which a bill can rise or fall each year. These are automatically calculated on your bill. The scheme for the 2010 revaluation capped increases and decreases in rates bills over a five year period to 2014/2015. A new revaluation should then take place from 2015/2016. The caps will be structured as follows: Year Upward caps Downward caps Small properties (rateable value below £18,000) Small properties (rateable value £18,000 or more) Small properties (rateable value below £18,000) Small properties (rateable value £18,000 or more) 2010/2011 5% 12.5% 20% 4.6% 2011/2012 7.5% 17.5% 30% 6.7% 2012/2013 10% 20% 35% 7% 2013/2014 15% 25% 55% 13% 2014/2015 15% 25% 55% 13% For more information about transitional arrangements contact the Rates Office on 01226 774765. Rates reductions Ratepayers can, depending on entitlement, benefit from a number of reliefs and exemptions to reduce the amount payable on their business rates bill. These include the following: Rates exemptions Small business rate relief Relief for charities and registered community amateur sports clubs (Casc's) Discretionary relief for non profit making organisations Rural rate relief Hardship relief Partial occupation relief More information can be obtained by clicking on business rates reductions. Rate recovery procedures All rates bills include instructions for paying an account. Ratepayers should, where they cannot make or maintain their payments, contact the Rates Office to discuss an alternative arrangement for payment. Where payment is not made in accordance with a payment instruction or any alternative arrangement then recovery proceedings will be carried out in accordance with the legal requirements set out for collecting business rates. The council can at first issue a reminder to request that the payment of an account be brought up to date. If so the amount requested must be paid within seven days or an alternative arrangement agreed with the Rates Office. Payments should then be maintained as required otherwise further recovery action will be taken. Failure to respond to a reminder notice properly will result in more serious steps being taken to obtain payment. In such cases the council may be required to make an application to the magistrates court to issue a summons for non payment. The summons will set out a court hearing time at which the magistrates will be asked to issue a liability order unless payment has been made to the council before the day of the hearing. Additional costs will be charged for the summons and for the liability order if payment is still not made and these will be added to the rates account. Arrangements can be made in certain circumstances where a summons has been issued. In such cases you would not need to attend court personally. A liability order will enable the council to take other legal proceedings to recover outstanding rates, initially through instructing bailiffs to collect the debt. Additional costs will be incurred if the bailiff is instructed to recover an outstanding debt. The council can, if the bailiff is unable to collect the debt, then consider issuing court committal proceedings or bankruptcy or winding up proceedings (in the case of limited liability companies). This would incur substantial costs that will be required to be paid. For more information about making a special payment arrangement and avoiding further recovery proceedings, please contact the Rates Office on 01226 774765. Rating appeals A ratepayer can appeal against the value shown in the list if they believe it is wrong. Further information on appeals can be found on the Valuation Office website or from the local valuation office. The local office for this area is: Sheffield Valuation Office, Cathedral Court, 2nd Floor, 1 Vicar Lane, Sheffield, S1 1HD. Telephone: 03000501501 Fax: 02070236222 More information can be found by accessing Rating Appeals. You can also contact the valuation office direct at the above address or access the VOA website at www.voa.gov.uk Changes in circumstances If you are an owner or occupier and have been charged full business rates but no longer occupy the property, or you have recently purchased or taken over a business property, please contact the Rates Office, see business rates account enquiries to request an amended or new rates bill. You should also notify the council if you feel that you may be entitled to a reduction or there are any changes of circumstances which could affect your entitlement to relief or reduced charges. Changes in circumstances include: moving into or out of a business property (including where partial occupation applies) changing the address to which bills should be issued changes in business names obtaining or losing charitable status Failure to make payment as required could result in recovery action being taken against you. If you are experiencing difficulty making payment you should contact the Rates Office as soon as possible to avoid action being taken against you. More information Click on business rates account enquiries for information including: contact details viewing your account online methods of payment application forms The business rates account number should be quoted when making an enquiry. Additional information To learn more about our compliments, comments and complaints process please see general complaints. Other useful websites Communities and Local Government Business Matters Business Link Institute of Revenues, Rating and Valuation Royal Institute of Chartered Surveyors