Commercial property investments are a big business these days. So, if you’re looking to join the ranks of successful investors, there’s a lot you need to consider.
Business rates are one of the most important factors to look into. Depending upon the type of property you’re looking into, these rates can really add up, resulting in a large bill at the end of the year. Below, you’ll discover everything you need to know about commercial business rates and the top things to consider.
What are business rates and do you have to pay them?
Pretty much all non-domestic properties are charged business rates including holiday homes/guest houses, shops, pubs and offices. The local council sends a bill in either February or March, telling you exactly how much the rates are. There’s only a very few properties which are exempt from paying business rates and these include:
- Properties used for the welfare of the disabled
- Farm buildings
There are relief schemes available which can help to lower the amount you need to pay. However, the application process varies depending upon whether you live in England or Wales.
If you buy an empty commercial property, you will be exempt from paying business rates for the first three months. If the property is a warehouse or industrial building, this extends to six months.
Calculating your business rates
As with any type of tax, calculating your business rates can be difficult. Therefore, it’s a good idea to consider getting help with business rates calculations from Allsop. Not only can a professional, experienced company help with the actual calculations, but they can also help you to identify any savings which could be made. Obviously, any savings you can make are beneficial!
A lot of business get confused by what the Government defines as rateable value. The appeals process is also notoriously long and difficult. There’s also talk that they plan to introduce an upfront fee to make an appeal so it could become quite costly too. So, if you want to avoid any potential issues, hiring someone to take care of the calculations is an essential benefit.
Overall, business rates are sadly something you can’t get away from. However, with the right help, they don’t have to be too complex or expensive. In such a competitive market, it also helps to be able to find a property with reasonable rates.