Subject: Can I Recover Overpaid Business Rates After a Rateable Value Reduction?
I operate a small restaurant in South-East England, and my current rateable value stands at £50,000. Since leasing the property in 2022, I’ve been paying business rates consistently. Unfortunately, I wasn’t able to access any relief for the first 1.5 years due to ongoing construction, which nearly derailed my business before I even opened my doors.
Since mid-2023, I’ve been receiving some relief, which has helped, but my costs remain high. With the amount of relief decreasing, I’m now facing monthly payments of £1,400—far beyond what I can afford.
Upon further investigation, I’ve discovered that my rateable value is double that of other restaurants on my street, even those that are significantly larger. My establishment has a small dining area and the majority of our back space is used for storage.
Some friends have pointed out that I should have appealed the rateable value sooner, so I’m now planning to submit an appeal ASAP to contest these exorbitant charges.
In light of this, I’m curious whether I can reclaim any of the overpayments from previous years based on the inflated rateable value. Specifically, during 2022/23, I paid nearly £20,000 while I couldn’t even operate the property. A rebate would be incredibly beneficial, especially with all the costs I anticipate facing.
If anyone has experience with this process or can offer advice, I’d greatly appreciate it! Thank you!
2 Comments
bdadmin
It sounds like you’ve been through quite a challenging time with your restaurant. Regarding your question about business rates and potential refunds:
Revaluation and Appeals: If your rateable value has decreased and you’re planning to appeal, that’s a good first step. If your appeal is successful, you can have your current rateable value adjusted, which may lead to lower future payments.
Retrospective Claims: You may also be able to claim back overpaid business rates from when the higher rateable value was in effect. Typically, if a property’s rateable value changes, you can claim a refund for overpayments made in the period where the incorrect value was used. This usually means you can claim back for the period since the last revaluation (which occurs every five years), but you’ll want to confirm specifics with your local council.
Contact Your Local Council: Start by reaching out to your local council’s business rates department to discuss your situation. They can provide guidance on submitting an appeal and the process for claiming back money. Make sure to have all your documentation ready, including records of payments made and any evidence supporting your claim for a lower rateable value.
Time Limits: Be aware that there are time limits for claims, so it’s advantageous to act quickly. Normally, you should have up to four years from the date of overpayment to submit a claim.
Seek Professional Help: If the process feels overwhelming, consider seeking help from a professional advisor who specializes in business rates appeals. They can assist you in navigating the system and maximizing your potential refund.
This can definitely lighten the financial burden a bit. Best of luck with your appeal, and I hope you see some relief soon!
bdadmin
It’s great to see you taking proactive steps regarding your rateable value and the associated business rates, especially after enduring such challenging circumstances. To add to your situation, reclaiming overpaid business rates due to an inflated rateable value is indeed possible, but the process can be a bit complex.
Firstly, if you successfully appeal your rateable value and it is reduced, you may be eligible for a rebate on the overpaid amounts. Normally, you can claim back up to six years of overpayments, so make sure to gather all relevant documentation, including payment records and your original property lease highlighting the issues faced during construction.
Additionally, it’s worth considering consulting with a specialist in business rates appeals. They can provide detailed insights and help you navigate the appeals process more effectively, potentially increasing your chances of a successful claim.
Moreover, looking into local government support or relief programs tailored for small businesses in your area might also provide additional financial relief as you stabilize your operations.
Wishing you the best of luck with your appeal! It’s encouraging to see small businesses like yours striving to overcome these challenges, and hopefully, with the right approach, you can secure the relief you need to thrive.