There’s no doubt this property tax represents a significant fixed operating cost for most recruitment firms. At this early stage of the New Year, we’ve reached a strategic point in the business rates calendar - James Knott, Partner at BGL Partners outlines the reasons why:

We are nearing the end of an extended 6-year 2017 Rating List
Start of the new 2023 Rating Revaluation period is in April

What makes it qualify as being ‘strategic’?

31 March 2023 represents the deadline for ratepayers to make a formal Check submission against their current 2017 list rating assessment. The significance is that a resulting savings can be backdated for up to six years, to 1/4/2017.

Draft 2023 Rating List – these draft assessments were published by the Valuation Office Agency (VOA) in late November and can be viewed via https://www.gov.uk/find-business-rates

2023 Rating Revaluation goes live 1/4/2023 – the new revaluation cycles will be 3-yearly from April. The 2023 rating list assessments are based on an assumed ‘open-market’ rental value as of 1 April 2021 (set two year before the Revaluation – compared to current assessments, which are based on an ‘AVD’ of 1 April 2015)

Duty to Notify – we anticipate a new ‘duty to notify’ reporting responsibility will apply to ratepayers for the 2023 Rating Revaluation, which will include confirming lease and rental information annually, confirming floor areas and detailing any property elements/modifications that should be assessed.

*** For more insight on the 2023 Rating Revaluation, please view our recent Business Rates Autumn 2022 Update

The strategic questions on potential savings/mitigation angles:

- Is there realistic scope/recent evidence to support a reduction in your current 2017 list assessment and/or rate liability?

- Is your new draft 2023 assessment too high, too low or about right? Importantly, there is limited scope to make a representation to the VOA to seek to amend/correct the draft list entry before it goes live on 1 April 2023…and the earlier this action is taken the better!

For those of you that haven’t already taken the sensible step of appointing a specialist rating surveyor for the new 2023 Rating Revaluation, the BGL rating team can help you with initial informal advice on your past, present and future rating position and, where appropriate, to outline recommendations on potential mitigation angles (along with a performance-related approach to any proposal).

In the first instance, please feel free to contact James Knott, one of the Partners on:

Direct Dial : 020 7183 8159

Email: jk@bglpartners.co.uk