What to Expect in the Upcoming Business Rates Consultation 2021
As 2021 progresses, businesses in the UK are starting to prepare for the upcoming Business Rates Consultation. This consultation will determine the rates businesses will have to pay for the next few years, and so it’s a critical event for all businesses operating in the UK. In this article, we will explore what businesses can expect from the upcoming consultation.
Background on Business Rates
Business Rates are a tax that all non-domestic properties in the UK must pay. The tax is calculated based on the value of the property, and businesses must pay it regardless of whether they own or rent a property. Business Rates are an essential source of revenue for local authorities and are used to fund local services such as road maintenance, rubbish collection, and schools.
The rates are typically set every five years, and the next Business Rates Consultation is set to take place in 2021.
What Changes Can Businesses Expect?
One of the most significant changes businesses can expect is the increase in rates. This rise is expected to be due to inflation, which could result in an average increase of 4%. There are also concerns that the COVID-19 pandemic could influence the rates as businesses have been hit hard by the pandemic. Many businesses have been closed for long periods, and so there is a chance that their rateable value will be reduced, hence the rates will decrease. However, this is still uncertain as the full extent of the pandemic’s impact is still not clear.
Another change businesses can expect is the delay in the consultation. The COVID-19 pandemic has caused significant disruptions, including the delay of the consultation. The delay means that businesses will have less time to prepare for changes in rates, making it challenging to budget effectively.
How Can Businesses Prepare?
It’s important for businesses to start preparing for the consultation as early as possible. One way of doing this is through conducting a property appraisal. A property appraisal will provide businesses with an accurate idea of their property’s value, making it easier to calculate their rates should there be any changes.
Businesses should also research any relief schemes they could be eligible for. These schemes include Small Business Rate Relief, Rural Rate Relief, and Empty Property Relief. Being aware of these schemes could help businesses make significant savings on their rates.
Conclusion
The upcoming Business Rates Consultation is shaping up to be an event that businesses in the UK need to prepare for. Changes in rates could have significant consequences, making it important for businesses to start preparing as early as possible. By conducting a property appraisal and researching relief schemes, businesses can mitigate the impact of any changes and budget effectively.
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