Clinic owners warned to prepare for 2017 business rates change

Clinic owners are being advised to check what their business rates will be next year, with the Government’s new business rates “revaluation” coming into force from April 2017.

At revaluation, the Government adjusts the value of business rates to reflect changes in the property market. This usually takes place every five years; however, the current revaluation is the first review in seven years and during this time property prices, especially in London and the South East, have risen sharply.

The revaluation could mean some businesses will see their rates go up and some will see a reduction, while others may be eligible for small business rate relief for the first time.

Currently, you can get 100% small business rate relief if you only use one property, that has a rateable value of less than £6,000. From April 2017, this will double to £12,000 and be made a permanent relief. Businesses with a rateable value between £12,001 and £15,000 will receive tapered relief, so the bill will be calculated on a sliding scale from receiving 100% relief to paying full rates.

Clinics are advised to go online and check what they can expect from April to give them time to prepare. If you feel the revaluation is wrong, you can consider an appeal. However, the Government is also introducing a new appeals system from next April, aiming to reduce the number of appeals being brought.

The Government’s Valuation Office Agency (VOA) posted the new rates online at the end of September. The VOA are also emphasising that a change in rateable value doesn’t necessarily mean rates change. Visit www.gov.uk/ government/organisations/valuation-office-agency