Many happy rental returns

Licensees who fail to complete and return their rental rate forms on time risk financial penalties and possibly criminal prosecution, warns the...

Licensees who fail to complete and return their rental rate forms on time risk financial penalties and possibly criminal prosecution, warns the Valuation Office Agency.

The Valuation Office Agency (VOA), part of the Inland Revenue, has issued a warning to licensees saying that they risk financial penalties and even criminal prosecution if they fail to submit their rental return forms within the correct time limit.

The forms are required to set the new rateable values, which will affect business rates from April 1, 2005.

Completion 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. Rating assessments are based on rental values at a pre-determined date - April 1, 2003. In the absence of sufficient rental evidence the valuation office generally relies on trading accounts of the property.

Next year will be the first revaluation where the VOA has the power to issue a fine of £100 and prosecute ratepayers who fail to return accurate details of rental income and trading figures within a 56-day period.

The forms requesting the information may be served at any time and the 56 days runs from the licensee's date of receipt. If the required information is not submitted within 20 days after that original period, the ratepayer will be liable for a second £100 fine and further penalties of £20 a day thereafter.

David Tretton, director of rating at the VOA, said: "Our priority is to obtain the information we need. We do not intend to apply the civil penalty unless we have to. If ratepayers send us the information we request within the time limits, the civil penalty will not affect them."

The new legislation was announced in September 2003 but the VOA granted business ratepayers a short transition period to get to understand the new arrangements before the application of penalties.

Some ratepayers will have to complete a standard form, which is available in hard copy and online. For individuals and companies - and their agents - which are responsible for more than one property, the VOA has developed a special facility for sending large amounts of information electronically - this is accessible from the VOA website.

Ratepayers who employ an agent to handle their rating liability are encouraged to make sure he or she has the information necessary to complete the form. It is the person to whom the form is sent, not their agent, who is liable for penalties.

Jerry Schurder, head of rating at Gerald Eve and chairman of the Royal Institute of Chartered Surveyors rating panel, has accused the VOA of taking a "softly-softly" approach to the legislation, because it has failed to use its new powers. Mr Schurder claims that the VOA does not have the resources to chase missing information.

He said: "This seems a strange way to ensure the supply of the missing information which the agency claims is vital to the accuracy of the new rates assessments currently being finalised. Hundreds of thousands of forms have still to be returned, yet the VOA has not issued a single penalty notice."

Rogue ratings advisers

Licensees were advised last year to watch out for rogue ratings advisers who are exploiting the rating evaluation. They promise large savings on business rates and offer to fill out Valuation Office Agency (VOA) forms in return for a cash fee.

The VOA issued its own warning last year following complaints that agents offering unfair contract terms and demanding money up front were attempting to pressure licensees into signing up.

Licensees should only accept advice from agents who are members of the Royal Institute of Chartered Surveyors (RICS).

There are some genuine firms who have secured good rates reductions for publicans so if you are interested in a firm's claims it is important to check up on them first and follow these basic guidelines.

Be wary of firms who "guarantee" a result. Appeals go through a lengthy procedure and there is even a possibility that rates could rise as a result
Remember that most good firms do not require an up-front fee and will ask for payment when the procedure has reached a conclusion
Bear in mind that it costs next to nothing to make an appeal personally and, should you feel confident enough, you can conduct the procedure yourself
Ask any firm for references from other publicans and check them out personally
Beware of the "hard sell"of telesales or doorstep salespeople and ask searching questions before you sign anything
Understand the terms of any contract you are offered and be aware that there may be terms which commit you to a period of service
Find out if the agent is able and willing to put you in touch with satisfied clients
Be suspicious of any agent who claims to be able to get a big reduction in your rateable value without inspecting your property or asking to see your accounts.

Don't forget: once the 56-day period has expired, a fixed penalty of £100 can be applied by the VOA. Licensees who do not return the forms for a further 20 days will face another £100 fine and after this a charge of £20 per day will be levied until the form is returned.

Go to: www.voa.gov.uk for further information.

Appeals

Grounds for appeal against your rating assessment:

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: