Business Rates Revaluation 2017 – how will your business be affected?
Many business owners face uncertainty as the business rates revaluation looms with April 2017 just around the corner, bringing with it the first review of business rates in seven years.
Although little has been confirmed, there is widespread speculation that some areas will face drastic increases, such as Dover Street in Mayfair with an earmarked 415% increase, due to the soaring property values.
Other areas such as the town of Redcar in Yorkshire can sit somewhat comfortably with speculation that rates may get a reduction of 38%, correlating again with the falling property value in such areas.
The government defended the forthcoming decision during the 2016 Budget, as they announced the biggest ever cut in business rates – worth £6.7bn over the next five years. From April, 600,000 businesses will pay no business rates at all and the revaluation will mean that nearly three out of every four businesses will see their bills fall or stay the same.
The Milton Keynes Chamber is calling on the Chancellor to use his last Spring Budget to support long-term business investment by taking action to deliver real reform to the business rate system.
Adam Marshall, Director General of the BCC, has said that the current rates system is ‘broken’ with some businesses noticing the steep increases compared to some with a decline around 40%. Furthermore, these business rates are making the UK an ‘unattractive place to do business’ all at a time when the UK’s uncertainty surrounding the future relationship with Europe is more unclear than ever.
Islington Council have launched a petition with the Islington Chamber of Commerce calling on Chancellor Philip Hammond to halt the rates revaluation until the UK has left the European Union, although there is no current update on the success of this.
Some properties are eligible for ‘Business Rates Relief’ from their local council. An example of this is ‘Small Business Rate Relief’ which you can claim if your business uses only one property or has a rateable value of less than £12,000. Another example is ‘Enterprise Zones’, so if you are starting up or relocating to an enterprise zone, you may qualify for business rate relief, which will be worked out by the council.
These changes in Business Rates are a reflection on the way the property market has changed rather than a direct outcome of decisions from central government.
Filing Tax/Accounts with HMRC Every 3 Months! Are you Prepared?
Many people have reported still feeling in the dark about HMRCs new propositions when it comes to filing business and personal tax returns online from 2018, although one thing is for sure; we are certainly stepping into the Digital era.
This time of year the word ‘deadline’ looms over all of our heads as the paper tax return must be filed by October 31st, albeit it only this way for two more years. Statistics show however, that the majority are already making the switch with only 11 percent of us filing by paper in 2015.
Despite online filing becoming increasingly more common for businesses, research highlights that many still feel in the dark about the foundations of ‘Making Tax Digital’ which was first announced in the 2015 budget.
HMRC have stipulated that one of the four ‘foundations’ of Making Tax Digital will be for businesses, proposing that they should not have to wait until the end of the tax year or even longer before knowing how much tax they should pay. This will be achieved by filing quarterly Tax Returns online.
The Telegraph have commented that this will put an ‘unnecessary burden’ on companies that do still feel that they are in the dark. Experts have told the Treasury Select Committee that this controversial switch is being hastily imposed without any detail of what companies must do.
Mike Cherry, head of Federation of Small Businesses has also told The Telegraph that he predicts ‘these changes would cost small businesses an extra £2,770 a year to file its returns, with many ill-equipped to handle online record-keeping’ HMRC’s intentions, on the other hand, are clear for the move forward. With the abolishment of the paper Tax Return and the October 31st deadline, businesses will be able to concentrate on putting people and profit first, rather than paperwork. Similarly, it seems that there will be greater clarity when it comes to paying tax bills.
Edward Troup, executive chair of HMRC, acknowledged the significant changes of this digital revolution by bringing the tax system into the 21st century and to help make HMRC one of the most digitally-advances tax administrations in the world.
Our parent company Klarity Vision will be speaking at The Business Show at Olmpia, London on Thursday 17th November about this major change for businesses, you can obtain a FREE ticket to the event here. They will be releasing a recording of the seminar after the show and you can register to receive a link by Clicking Here.