Are you stuck in a business rates backlog?

Increasing numbers of members are contacting us about their business rates bill/assessment. While we do our best to answer in line with Valuation Office Agency (VOA) guidance, often our suggestion is to either ask the VOA to check/challenge their assessment or appeal it where they have already done so.

Frequently we find that members have already started a check/challenge process, but have then been left in limbo with no further communication from the VOA as to what to do in the meantime.

Invariably, we are then seeing members having to pay the rates demand that they suspect (or know!) to be incorrect so as not to incur further chasing and charges from their local authority, while hoping that at some point their case will be reviewed and a reimbursement of any overpayment made.

This is obviously not ideal, especially for businesses who do not have large sums of cash in the coffers to pay a questionable rates bill that is higher than they had anticipated or budgeted for.

The business rates appeal process changed in 2017 in England and is now known as “Check, Challenge, Appeal” (CCA). The VOA deals with checks and challenges, while the independent Valuation Tribunal for England (VTE) handles appeals.

Owners, occupiers, and authorised agents must first register to use the online service and view or request details of their valuation.

The check stage sets out exactly how a valuation has been calculated. It provides the business/property owner with the facts applicable to their assessment and allows them to update those facts if they have changed or are incorrect. This is to ensure that everyone understands and agrees the factual basis for any valuation, and that valuation can therefore be amended at this initial stage if necessary.

The challenge stage allows people to challenge the valuation if they feel the calculation which was undertaken, as based on the facts established at the check stage is incorrect. At this point property and/or business owners can submit full evidence for their challenge, giving the VOA the opportunity to review, and hopefully resolve, the issue without the need for an appeal. Once they have reviewed the case, the VOA is required to present the full evidence to support their decision.

If there is still no satisfactory outcome for the property/business owner after having understood all the evidence and basis for the VOA’s decision, they can appeal to the Valuation Tribunal.

In August, statistics on the VOA’s performance in the 2023-24 year were published and while they’re still dealing with a legacy backlog from Covid, and are fairly efficient in dealing with simple checks on ratings, it is a different picture for challenges.

In the last quarter (April – June 2024) 5,000 challenges were registered, while only 880 challenges were resolved. Overall, in the last year 12,620 challenges were registered, of these, 1,870 were resolved and 1,560 were marked as incomplete/awaiting further information, and this leaves 9,190 cases still outstanding, or to put it another way - 73% of challenges remain unresolved.

Conversely, when looking at the statistics for the simple ‘check’ cases, 69,930 out of 81,370 were resolved in the last year – an 86% resolution rate.

Have you experienced issues? The CLA is interested in hearing your views and is here to help. Please call Rosie on 01264 358195 or email rosie.saltcrockford@cla.org.uk