Pubs warned of 'bandit' ratings advisers

Licensees are being advised to watch out for rogue ratings advisers who are exploiting the forthcoming rating evaluation.

Michael Yass, head of ratings at agent Fleurets, has issued a warning to licensees about "bandits" posing as specialist advisers. They promise large savings on business rates and offer to fill out Valuation Office Agency (VOA) forms in return for a cash fee.

Completion of these forms is mandatory and the information supplied will go on to form the basis of the rating assessments that will appear in the 2005 rating list. The rateable value of a property is based on the value of the business, which includes a combination of rental values and turnover.

The VOA, part of the Inland Revenue, issued its own warning earlier this year following complaints that agents offering unfair contract terms and demanding money upfront were attempting to pressure licensees into signing up. But these people, who offer unfair contract terms and demand money upfront, are still operating, Mr Yass (pictured)​ says.

"Licensees should be wary of advisers making promises of large savings in rates payable following any appeal in the 2005 rating list. A reduction in rateable value does not automatically mean a reduction in the rates bill," he added.

"We are aware that bandit rating experts offer advice, giving the impression that a reduction in the rateable value will reduce the rates bill. This may not always be the case due to the effects of transitional relief."

Mr Yass says some advisors have been known to sell their services based on an administration charge, along with the rateable value achieved. He says that there are increasing numbers of cases in which licensees have paid the administration charge at the time when their appeals are being discussed and have found that these companies have ceased trading.

"Some success-related fees based on the reduction of rateable value will cost the licensee more than they will save in the rates payable," he said. "I am aware of many occasions when such contracts have been challenged. Unfortunately, the contracts are water tight and well considered - even if the advice may have not been."

Licensees must only accept advice from agents who are members of the Royal Institute of Chartered Surveyors (RICS). Ratepayers have 56 days to return their rent forms to the Valuation Office Agency.

If that's not done they will run the risk of receiving a fixed penalty of £100.

If a further 21 days have elapsed and forms still remain outstanding, another penalty of £100 is payable, followed by £20 per day until the form is returned.

Grounds for appeal​

The rateable value of a property reflects its value on a specified date. A change in circumstances can bring grounds for a rate reduction, such as:

• Change in occupation
• Physical alterations to property
• New competition affecting trade

Temporary allowances​

• Refurbishing property
• Building construction in local area
• Roadworks, diversion or temporary closure.

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