Business Rates - Frequently Asked Questions
Please click a question and you will be taken directly to the answer.
1. How can I find out the rateable value of a business property?
2. How can I appeal against my rateable value?
3. How do I register for business rates?
4. How much will I have to pay?
5. What is transitional relief?
7. Will I be charged for business rates if I work from home?
8. Will I be charged if my property is empty?
9. What do I get for my rates?
10. Can village shops and post offices get any sort of business rate relief?
12. I am only using part of my premises. Is there any rate relief that I can apply for?
13. I am having difficulty paying my business rates. Can I make a special arrangement?
14. Why have I received a business rates reminder/final notice/summons?
1.How can I find out the rateable value of a business property?
If you want to check your own or any other rateable values in the East Devon area, or in other parts of the country, you can find the information on the Valuation Office Agency’s website at www.voa.gov.uk.
2. How can I appeal against my rateable value?
You can make an appeal against your rateable value:
a) if you think the rateable value (RV) shown in the rating list (and on your bill) is wrong, e.g. following a revaluation or when the property is first valued;
b) if there has been a change in circumstances which affects the value of the property, e.g. part of the building has been demolished or destroyed or there has been a change in use of the building or in the use of the neighbouring property.
It costs nothing to appeal. You can ask the valuation officer for a form and he will send you one together with some advice on how to fill it in. You can also get a form from the Valuation Office Agency’s website at www.voa.gov.uk.
If you do not agree with the valuation officer’s decision, you can appeal to the Valuation Tribunal. You can get more information about this by contacting:
The Valuation Officer,
Valuation Office Agency
Broadwalk House
Southernhay West
Exeter EX11 1TS
Telephone 01392 606900
Please remember that you must pay your business rates even if you have appealed against your rateable value.
3. How do I register for business rates?
You can contact the business rates team:
1. by PHONE: on 01395 517445
2. by FAX: on 01395 517414
3. in WRITING: to Business Rates, East Devon District Council, Knowle, Sidmouth, EX10 8HL
4. in PERSON: visit the Council Offices at Knowle in Sidmouth
5. by E-mail: revenues@eastdevon.gov.uk
4. How much will I have to pay?
We work out your business rates bill by multiplying your rateable value by the rate poundage, or 'multiplier' as it is known. The Government sets the multiplier each year for the whole of England. For example, the multiplier in 2008/2009 is 46.2p so if your rateable value is £20,000 your bill would be £9,240, unless it is subject to Transitional Phasing. If you qualify for Small Business Rate Relief (SBRR), the multiplier for 2008/2009 is 45.8p.
You can find more information about transitional relief and SBRR.by visiting the official Government website www.mybusinessrates.gov.uk.
5. What is transitional relief?
Business properties are revalued every 5 years and rateable values may change. Transitional phasing arrangements help to limit the effects of any changes so that bills do not increase or decrease beyond certain limits in any year. Increases are limited by transitional relief and decreases by transitional levy. These limits continue to apply over the life of the scheme until the full new amount is due (rateable value x the multiplier). Your bill will automatically show whether or not your property is subject to transitional relief or levy.
You can find out more about transitional relief by clicking here or contact the business rates team on 01395 517445.
6. Can I pay by direct debit?
Yes. You can
Print out a direct debit mandate (21KB - PDF Help) or ring the business rates team on 01395 517445 and we will send you one. Just fill it in and return it to us.
If you have lost the right to pay by instalments because you have been sent a Final Notice or Summons, you can still pay by direct debit if you contact the business rates team and agree a special arrangement to pay.
7. Will I be charged for business rates if I work from home?
You may have to pay business rates for the part of the property you use for your work. But if you are only using part of a room, as an office for example, and it makes no significant impact on the domestic use of the property, you may not be charged business rates.
If part of the property is business rated, you will still have to pay council tax for the rest (although your valuation band may change). It will depend on the circumstances of each case. You can find more information in the Valuation Office Agency leaflet
Working at or from home (140KB - PDF Help). or you can contact the Valuation Office Agency (VOA) at:
The Valuation Officer
Valuation Office Agency
Broadwalk House
Southernhay West
Exeter
EX11 1TS
Telephone 01392 606900
You should also remember that in most circumstances you will need to seek planning permission.
8. Will I be charged if my property is empty?
From 1 April 2008, most property that has been empty for more than 3 months - or, in the case of industrial property, for more than 6 months - will no longer receive any relief from rates and the full amount will become payable. There will still be some exemptions. You can check the details here.
Properties which close seasonally will still pay at the full annual rate because the limited useage is already reflected in the rateable value.
Back to the questions
9. What do I get for my rates?
The business rates collected by East Devon District Council are paid into a central government ‘pool’ and then redistributed as grants to local councils. Together with the money collected from council tax, business rates contribute directly towards the costs of local services such as education, roads, police and fire services, domestic refuse collection, etc (business rate payers remain responsible for the cost of collecting their non domestic waste).
You can view or download a copy of our booklet
Working together in East Devon (1168KB - PDF Help) which sets out spending on these services in 2007/08. Contributions from: Devon County Council, Devon and Cornwall Police Authority, Devon and Somerset Fire & Rescue Authority and East Devon District Council are included in the booklet.
10. Can village shops and post offices get any sort of business rate relief?
Yes. The Council is allowed to give 50% relief from rates to post offices and general stores in areas designated as ‘rural settlement areas’. Click here to get a list of the East Devon settlement areas.
To qualify for the relief the property MUST:
a) be within the boundaries of the settlement area
b) have a rateable value (RV) of not more than £7,000
c) be used, in whole or part, as a general store or post office, or both, and
d) be either the only general store or the only post office in the settlement.
If there is both a general store and a post office in the same settlement, they will both be entitled to the relief if they meet the conditions above. If there is more than one general store or more than one post office, none will qualify.
11. Can any other village businesses, apart from village shops and post offices, get business rate relief?
Yes. The Council is allowed to give 50% relief from rates to certain other businesses in areas designated as ‘rural settlement areas’.
The other types of business which can qualify for 50% relief are:
1. food shops with a rateable value of up to £7,000;
2. the only village pub and the only petrol station as long as they have a rateable (RV) of up to £10,500.
If you have a business in a qualifying rural village with a rateable value of up to £14,000, the Council can give you up to 100% relief. You can find out more about rural rate relief by contacting the business rates team on 01395 517445. Click here for a list of the rural settlement areas in East Devon,
12. I am only using part of my premises. Is there any business rate relief that I can apply for?
Yes. Section 44(a) relief may be awarded for a limited period, if you are only using a clearly definable part of your premises and the remaining area is completely unused.
13. I am having difficulty paying my business rates. Can I make a special arrangement?
If you can't pay the instalments as shown on your bill, you may be able to make a special arrangement to pay. Contact the business rates team on 01395 514445 to discuss a payment plan.
14. Why have I received a business rates reminder/final notice/summons?
You must pay your business rates in accordance with the instalments shown on your bill to avoid recovery action.
Recovery will take the following course if payment dates and amounts are not met:
- If you miss an instalment we send you a reminder.
- If you pay on the reminder and then keep all your remaining instalments up to date, no further action will be taken.
- If you do not pay as stated on the reminder, it will mean that you are no longer entitled to pay by instalments and we will send you a Final Notice to pay the balance in full. You should contact the business rates team on 01395 517445 to make an arrangement if you are unable to pay in full.
- If you pay in full within 7 days, we will not take any other recovery action. It is not enough just to bring your instalments up to date after you have received a Final Notice.
- If you do not pay in full after you have received a Final Notice and have not agreed a special arrangement with the business rates office, we will send you a Magistrates’ Court summons which will cost you £35.
- At the Magistrates Court we will ask for a Liability Order to be granted.
- The Liability Order gives us the power to send in bailiffs to seize your goods. The bailiffs can then auction the goods to pay the rates bill and their fees. You will be charged for the visit by the bailiffs even if you are not in when they call.
Please remember, you must still pay your business rates even if you have appealed against your rateable value or if you are waiting for the result of an application for any form of rate relief.
