Salon owners warned to prepare now for 2017 business rates change
Beauty and hair salon owners have been 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.
The National Hairdressers' Federation (NHF) has warned that the revaluation could mean some businesses will see their rates go up sharply and some will see a reduction, while others may be eligible for small business rate relief for the first time.
Currently salon owners can get 100% small business rate relief if they only use one property, which 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.
Business rates are based on the rental value of your premises and are usually revalued 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.
“What’s important right now is that you get online to check what you can expect from April to give you time to prepare. If you feel the revaluation is wrong, you can consider an appeal,” said NHF chief executive Hilary Hall.
“However, the Government is also introducing a new appeals system from next April, aiming to reduce the number of appeals being brought. So, if you feel your rates bill is wrong it is important to be doing something about it as soon as possible. Your first option should be to speak to the VOA, but you can also appeal to an independent valuation tribunal,” she added.
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.
You can check your business rates here.