THURROCK Council’s Trading Standards are warning businesses to beware of so-called “reduction” companies which offer to help reduce business rates by appealing against valuations.
Local councils collect business rates on behalf of central government and businesses are re-valued every five years with new rates applied.
Reduction companies offer to appeal the valuations with promises that rates will be reduced, often in exchange for large fees.
Thurrock Council’s portfolio holder for Public Protection, Councillor Angie Gaywood, said: “Our advice for businesses is to be very cautious of claims from companies that say they can secure big reductions in business rates.
“Ask for written confirmation of such claims and if the company refuses, stay well clear.”
Details of the appeals procedure are included in the revaluation notification and in the notes accompanying the rates bill from the local authority.
Information and advice is also available from the local valuation office or online at www.voa.gov.uk.
Cllr Gaywood added: “Always be suspicious if asked to pay large sums of money up-front, especially for something that you can actually instigate yourself.
“Do not agree to anything until you have fully read the terms and conditions, once you’ve signed and paid you will have no automatic right to cancel.
“Always remember, if you appeal, your rates could go up as well as down. This is not made clear by the firms who contact you.”
For more advice visit the Citizens Advice website using this link http://www.adviceguide.org.uk or call 08454 04 05 06 to speak to the Citizens Advice consumer helpline for free and confidential information.
The article is correct, promises of reductions and upfront fees or fees once appeals have been acknowledged (a receipt by the Valuation office), are warning signs that the advice you are getting may not be the best. It is also correct that it is the rate payers right to appeal the assessment but with the Valuation Office current approach of defending the rating list and the fact that you are limited to one appeal per revaluation cycle, I would advise that companies should still seek professional advice. in many cases, the surveyor providing the advice will ascertain if there is a case to begin with and only appeal if so. Be careful and wary but do not be put off, the current valuation in place now until 2017 and savings can be backdated to 1st April 2010, so if savings are possible, this can be significant over this 7 year period. Not to appeal or at least engage a professional can be a costly mistake. Like all things in life, it is the minority that ruin it for the majority.