Beware of rate appeal scam warns Fleurets

by John Harrington

Licensees are being warned to beware of "experts" who try to sponge money from hosts who want to appeal against the provisional rateable value that has been set for their pub.

The Value Office Agency (VOA) is, for the first time, sending businesses ­ including pubs ­ a breakdown of how their new rateable value is derived.

These summary valuations are being sent to clarify the process of determining next year's business rates, which come into effect on 1 April, 2005.

It also allows hosts to budget ahead and seek expert advice as to whether the levels are fair.

But Michael Yass, head of ratings at Fleurets, said he has received several calls from hosts who have been approached by supposed experts who are asking for an admission charge upfront to challenge an assessment from the VOA.

Yass warned: "I have seen some agreements that have referred to appeals served as far ahead as in 2009, so that the expert' company can claim a fee for any reduction in rateable value achieved until this time."

Hosts are advised to only seek advice from a company that subscribes to the Rating Consult-ancy Code of Practice, which has been drawn up by the Royal Institute of Chartered Surveyors, the Institute of Revenues, Rating & Valuation, and the Rating Surveyors Association.

Under the Code, companies that offer rating advice must detail what services they will provide and explain the charges.

They should also provide a one-page document called Information for Ratepayers (England & Wales), which explains the process of appeal and negotiation with the VOA.

Yass urged hosts to think carefully before committing to such an agreement.

"The purpose of engaging a rating expert is ultimately to reduce the business rates liability of any particular property.

"Reducing the rateable value of that property is only one small part of achieving this aim.

"There is a considerable amount of legislation that governs the calculation of business rates liability."

For information on reputable rating advisers contact the Royal Institution of Chartered Sur-veyors on 0870 333 1600.

For general information on rateable values call the VOA helpline on 0845 602 1507 or see the draft rating list at its website ­ www.voa.gov.uk