Salons urged to be proactive and check out what business rate changes mean for them

Hair and beauty salons and barber shops, especially those in the more affluent areas of London and south east England, are being urged to go online and check what their new business rates bill will be from next April.

A much-delayed business rates “revaluation” will come into force from April, and could mean some businesses will see their rates go up sharply. Others may find their bills will reduce and some may even discover they have become eligible for Small Business Rate Relief for the first time.

The government’s Valuation Office Agency (VOA) posted the new rates online at the end of September, and is urging businesses to check them at gov.uk/voa/revaluation.

Business rates are based on the rental value of your premises, and are normally revalued every five years. However, the current revaluation is the first review in seven years, during which time property prices have risen sharply in many areas, especially London and the south east.

Currently a business can get 100% Small Business Rate Relief – in other words not have to pay any business rates at all – if it only uses one property, and that property’s rateable value is less than £6,000. There’s good news, as this will double from next April to £12,000 and be made a permanent relief.

Also from April 2017, business with a rateable value of between £12,001 and £15,000 will receive tapered relief, in other words their bill will be calculated on a sliding scale from receiving 100% relief to paying full rates.

The revaluation means some small businesses could move over the £12,000 threshold for 100% relief and so will have to start paying rates for the first time, the NHBF is warning. For others, however, it could mean the opposite. The government is also emphasising that a change in rateable value does not necessarily mean rates change.

“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 NHBF 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.