For many start-up and fast-growth tech businesses, business rates are not necessarily high on the agenda, but failing to anticipate the rating revaluation coming into effect from 1 April 2017 could have a significant impact on costs.
Initial surveys have shown that areas such as Farringdon, Shoreditch and Spitalfields are going to be subject to the biggest rises in valuation, which could hit tech businesses hard.
So what should you do? The first step is to check the draft rateable value of your property which can be accessed from the government website (see link) and determine whether you believe your property is being overvalued. Then, think about any exemptions or reliefs that may be available e.g. for occupying property that is not fully in use. Finally consider whether you should appeal.
At the very minimum you will need to be aware of the rate changes for budgeting purposes, so start checking now!
The first revaluation since 2010 is likely to create winners and sore losers. Entrepreneurs across the UK are finding out on Friday about the impact of the biggest change to business rates in a generation. Many London-based businesses are facing sharp rate rises, although firms in the Midlands and the north are largely unaffected or are seeing a reduction.