Non-Domestic Rates Challenges

Unpacking Non-Domestic Rates: Why New Business Owners Shouldn't Be Shocked by Their Bill

For many new business owners, the process of starting up can be both exciting and challenging. However, one thing that often comes as a shock is the non-domestic rates bill that they receive from the local council. Non-domestic rates, also known as business rates, are taxes levied on non-residential properties in England and Wales. These rates can be a significant expense for businesses, and new business owners may not be fully aware of the costs involved.

As a new business owner, you may be surprised by the amount of non-domestic rates that you are required to pay, especially if you are not yet generating substantial income. This can put a strain on your cash flow and impact your ability to grow your business.

Working with a professional team like Aurora Assist can also help you challenge the rateable value of your property and ensure that you are paying a fair and accurate amount in non-domestic rates. With our expert analysis and knowledge of the ratings appeal process, we can help you save money and focus on growing your business.

It's important for businesses to ensure that they are paying the correct amount of NDR, as non-payment or underpayment can result in legal action and penalties. It may be helpful to consult with a tax professional or accountant to ensure compliance with NDR regulations.

If you are looking for ways to effectively challenge non-domestic rates in England & Wales, Aurora Assist has extensive experience to help you. Our research team will uncover any possibility that your location has been unfairly rated by the Valuation Office Agency. Our services are tailored to meet your needs, so you can make sure that the non-domestic rates you are paying are fair and accurate. We will supply expert analysis of your properties to uncover errors and omissions that may be costing you money.

At Aurora Assist, we have helped a number of clients in ratings challenges and have successfully argued for lower non-domestic rates on their behalf. It's important to ensure that you are paying the correct amount of NDR, as non-payment or underpayment can result in legal action and penalties. It may be helpful to consult with a tax professional or accountant to ensure compliance with NDR regulations. Contact us today to learn more about how we can help you make sure that your non-domestic rates are accurate and fair.

What are Non-Domestic Rates?

The amount of non-domestic rates payable is calculated based on the rateable value of the property, which is assessed by the Valuation Office Agency (VOA). There are different methods used to value non-domestic properties, depending on the type of property. The rental method is used to value properties like shops, factories, and offices, where there's a lot of information available about lease terms and rents paid. The profits method is used to value properties like hotels, leisure centres, and theme parks when there is not much information about rents paid. The rateable value is based on the rent a tenant would be willing to pay to achieve a certain amount of trade. The contractor's basis is used to value properties like schools, airports, and chemical plants that are never rented out, so there is no information about rents paid. The rateable value is based on the cost of constructing a like-for-like building.

The local council then multiplies the rateable value by a "rating multiplier" to calculate the annual business rates payable.

It is important to note that there are ways to reduce your non-domestic rates bill. For example, you may be eligible for small business rates relief, which provides a discount on your rates bill if your property has a rateable value of less than £15,000. There are some exemptions and reliefs available for certain types of properties, such as charities and small businesses. Additionally, businesses that are adversely affected by local infrastructure projects or economic changes may be eligible for business rates relief.