Thursday, February 9 2012
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Business Rates FAQs

Q How are my rates assessed?
A
The Business Rates you pay are calculated using the Rateable Value of your property.  This is not set by Wakefield Council, but is the responsibility of an officer of the H.M. Revenue & Customs, called the District Valuer.  The Rateable Value of every commercial property is reassessed every five years, in order that they keep pace with fluctuations in the property market, the last re-valuation took effect from 1 April 2010.
 
Considerations that the District Valuer will take into account when calculating a particular Rateable Value would be the actual size of the property, its location, physical condition and use.  Taking all these factors together, your Rateable Value should broadly equal the annual market rent you pay for your premises.
Q How do I find out how my Rateable Value was calculated?
A
This information is available from the Valuation Office Agency website at www.voa.gov.uk  For many types of property, there is a ‘Summary Valuation’ which gives the size and rate per square metre of the assessment.  Further information is available from the Valuation Office Agency on telephone number: 03000  509900.
Q How do I get my rates reduced ?
A
Appeals are dealt with by the Valuation Office Agency, you can either appeal online at www.voa.gov.uk or by contacting the local office in Leeds at:
 
Valuation Office Agency
Eastgate House
42 Eastgate
Leeds
West Yorkshire
LS2  7JL
 
Telephone: 03000  509900.
Q Can I get my property taken out of Rating?
A

If your property is not capable of beneficial occupation for instance, if it is in poor condition and cannot be economically repaired the District Valuer may judge it should be taken out of the Local Rating List altogether.  However, if a property is damaged for the purposes of avoiding rates, under new anti-avoidance legislation introduced by the Government the valuer will be required to disregard the change in the property state when assessing its Rateable Value. 

For more information, contact the Valuation Office Agency – as above.

 
Q How much does it cost to make an appeal?
A

If you make an appeal yourself then this should cost you nothing.  If you choose to employ a Rating agent to act on your behalf they will charge you a fee, and you should be aware that this fee may exceed the level of savings that they accomplish for you.  This is because there are overriding limits on how much Rates bills can change from year to year under the transitional relief scheme.

Before employing a rating adviser, you should satisfy yourself that he or she has the necessary knowledge and expertise, as well as appropriate indemnity insurance.

Please be careful before entering into any contract and take advice if necessary before you do so.  Also bear in mind that no matter how persuasive they may be, no one can guarantee reductions in Rateable Value. These are always subject to the agreement of the Valuation Officer or the decision of a Valuation Tribunal or higher court.
Q Have I got to pay whilst I appeal?
A
Yes.  If you are awaiting the outcome of an appeal, you must pay your Business Rates as outlined on your bill until such time, as any, that a replacement is issued. 
 
Failure to do so will lead to action being taken to recover the amount.
 
Please be aware that not all appeals are successful, and that, in some circumstances, may lead to an increase in your Rates liability.
Q Can I pay by instalments?
A
Yes.  The instalment plan for you account is shown on the bill that we send you.  If your account is not in arrears, you will usually be granted a number of instalments equal to the number of whole months left in the financial year, less one. 
 
Should you wish to pay your Rates in any way other than that shown on your bill - you must contact the Rates office to make a suitable alternative arrangement.
Q Can I pay by direct debit?
A
Yes.  For people with a Bank/Building Society account, Direct Debit is the most efficient and cost effective method of paying Business Rates.  Once set up, a Direct Debit continues automatically and will take account of any alteration to your Rates liability.  You remain in control and there is even a money back guarantee.
 
Your bank details and authorisation to set up the Direct Debit can now be taken over the telephone to speed up the process, simply telephone the rates office on 01977 727121
 
Direct Debit forms are also printed on the back of many of the documents we issue, or you can download a form from the 'How to pay your Business Rates' page.
 
If your bill states that your instalments will be collected by Direct Debit, there is no need for you to fill in another form or phone us unless your details have altered.
 
Q What do I get or what services are provided for my Rates?
A

Business Rates are a tax based on Non-Domestic property. The money collected by the Council is indirectly used to contribute towards local services. Specific services, however, like trade waste collection are chargeable separately and are not included in the Rates you pay.

This is the same throughout England.
Q I pay my Rates to my landlord, why have you made me liable?
A

The Council realise that some businesses may pay with their rent an element of Business Rates, however the Council are not allowed to recover occupied Non-Domestic Rates from anyone other than the person occupying the property, which is why you as the occupier have been billed. If you are in this situation, you are advised to raise the issue with your landlord, and either change the terms of your lease or ask him/her to meet the payments.

Additionally, ratepayers who are involved in these third-party agreements may not be able to benefit from any discount that they would otherwise be entitled to under the Small Business Rate Relief Scheme.

 
Q What happens if I don’t or can’t pay my rates?
A
If you fail to pay your Business Rates by the due date given on your bill, recovery action will commence. All ratepayers will be subject to the same recovery procedures in accordance with the Non Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989.
 
If you do not pay an installment, we will send you a Reminder which gives you 7 days to bring your account up to date.  If this reminder notice is not paid, the right to pay by monthly installments is lost and the Council will commence formal legal proceedings.
 
If a Summons is issued, this will be for the balance of the Rates for the whole financial year, together with costs.  If you settle in full the amount, including costs, shown on the Summons before the court hearing date, we will take no further action. Please note that should you pay the outstanding charge but not the Summons costs, legal action will continue.
 
Before the hearing, we will be willing to discuss a mutually acceptable payment arrangement but this will be on the understanding that the Council continues with the legal action. We will still attend the hearing to request the Magistrates grant a Liability Order, and thereby secure the debt.
 
The Liability Order gives the Council permission to recover the amount that you owe by the means of instructing a bailiff and/or insolvency or committal proceedings.