Beware 'cowboy' rate advisers

The recent Scamwatch campaign run by The Publican has highlighted the wide range of areas where hard- pushed licensees are susceptible to unscrupulous operators.

One of the oldest of these is perhaps in the area of business rates 'advice'. As often the third-biggest outgoing of a pub business, after rent and wages, most publicans are going to be interested in someone who comes knocking at their door making offers of tempting savings on their business rates bill.

Having been on the property side of the pub business for 30 years and in pub rating since the early 1990s, I have seen scams evolve.

Slick presentation​

In the early days, these involved salesmen with slick presentation and impressive literature, taking around £500 off a licensee on the basis of some plausible explanation of how they could shave thousands off their rating assessment. Often, after taking the money, they were never heard of again.

In some cases they did make an appeal, albeit on invalid grounds. However, by the time the case came round for discussion with the Valuation Office (VO), they had invariably disappeared or gone into receivership.

A lot of publicity highlighted these fraudsters, and everyone became wary of 'up-front fees', so they changed their tack slightly and solemnly declared that no fee was payable until the VO had accepted a valid appeal.

They suggested that the 'acceptance' of an appeal was proof that the VO acknowledged the assessment was too high, and therefore was entitled to payment of a fee.

Appeal process ​

In fact, the submission of a rating appeal is a relatively simple matter involving the completion of a one- page form (although many still managed to get it wrong).

The mere acknowledgement by the VO that a properly prepared appeal had been made never implied it accepted there would be a reduction. In fact it has been known for ill-advised appeals to trigger an increase.

Many less-than-scrupulous outfits still operate and it is often difficult to differentiate these at first glance from the genuine rating advisers.

By automatically rejecting any approach made to you by any party claiming to be a rating 'adviser' you may be throwing away a very real opportunity to make savings on your rates payments and even refunds going back several years.

If you are the tenant or lessee of a brewer or pub company, it is likely that it already provides a service from one of the established and specialist firms of chartered surveyors operating in this market. In many cases this is free, or subject to a small, fixed annual charge.

Confidential service​

These appointed firms are highly experienced professionals. The service provided is confidential and trading information disclosed by you will not under any circumstances be revealed to your landlord.

Your assurance on this lies in the fact that these firms, being chartered surveyors, are subject to the rules and regulations of that institution and could lose their chartered status and hence their livelihood if this confidence was breached.

If you get approached by a firm and are not sure of the situation, don't sign anything. The first step should be to check with your area manager that the firm is a nominated rating surveyor.

There is no good reason for brewer and pubco licensees who benefit from this service to have any involvement with anyone else.

Earlier this year I dealt with a case where a lessee for a major pubco had unwittingly employed a cowboy firm. It had made an appeal for him, asked for trading information and taken a substantial fee. The firm then decided with no reference to the lessee to withdraw the appeal, saying the assessment looked OK.

Through my contacts with the VO, I was able to resurrect the matter and negotiate a reduction. This is by no means an isolated case.

If you do not receive a rating service through your brewery or pubco, my advice is to always use a firm of chartered surveyors. You will have to pay a fee - this can often be success-related - but it will always provide you with the RICS code of conduct for rating surveyors.

Mike Watt is a chartered surveyor with Robert Clarke in Nottingham​

Top tips on business rates ​

• Never part with money or sign anything on the spot
• If you are a pubco/brewery tenant, check out what it provides
• If you are a freehouse, or get no service from your landlord, only use a firm of chartered surveyors and expect to receive its 'code of conduct'
• Don't ignore approaches from your landlord's appointed firm
• Don't ignore notices or requests for information from the Valuation Office. Seek advice.