A business rates bill can look fixed and non-negotiable, particularly when it arrives alongside rent, service charges and other property costs. It is not always fixed, however. This business rates review guide explains how commercial occupiers in England and Wales can test whether their liability is fair, identify where an assessment may be wrong, and take proportionate action before an overpayment becomes an accepted cost of doing business.
The starting point is simple: business rates are based largely on the rateable value assigned to a non-domestic property. If that value, the property details behind it, or the reliefs applied to the account are inaccurate, the bill may be higher than it should be.
Why a business rates review can pay for itself
Business rates are a significant recurring overhead. For a single shop, office, warehouse or industrial unit, even a modest reduction in rateable value can have a meaningful effect on annual outgoings. For operators with several locations, small errors across a portfolio can quickly become material.
A review is not about challenging every bill as a matter of course. The objective is to establish whether the assessment reflects the premises, its use and the rental evidence that should support the valuation. A well-founded case is more likely to produce a reduction than a speculative challenge, and it also reduces the risk of time being spent on an issue that will not change the outcome.
Reviews are particularly worthwhile after a revaluation, a move into new premises, a substantial physical change, or a change in local trading conditions. They can also be valuable where a business has simply never checked the basis of its assessment.
Start with the rateable value, not just the bill
The rateable value is an assessment of the annual rental value a property could reasonably have achieved at a specified valuation date, using statutory assumptions. It is not the rent you actually pay, and it is not a direct statement of the property’s market value.
Your rates bill is broadly calculated by multiplying the rateable value by the relevant multiplier, then taking account of any reliefs, supplements or transitional arrangements. That distinction matters. A bill may look high because the rateable value is excessive, but it may equally result from a missing relief or an administrative error on the billing account.
Begin by checking the description, address, floor areas and property type recorded for the hereditament. A hereditament is the unit of property assessed for rating purposes. Errors can arise where areas have been measured incorrectly, parts of a building have been included when they should not be, or an assessment does not reflect a split, merger or change in occupation.
For larger or more unusual premises, the valuation method can be just as important as the measurements. Warehouses, factories, offices, retail units, leisure premises and specialist properties may be assessed using different approaches depending on the available evidence. A meaningful review therefore needs more than a comparison with a nearby property that happens to have a lower rateable value.
What to check during a business rates review
A practical review usually considers three connected questions: is the property record accurate, is the valuation evidence sound, and has the billing authority applied the correct reliefs and charges?
Check the physical details
Compare the official property details with plans, leases, surveys and what exists on site. Pay close attention to net internal area for offices and shops, gross internal area where relevant, ancillary storage, mezzanines, car parking, loading areas and external land.
Consider whether the premises have changed since the assessment was made. A partial demolition, loss of access, flood damage, building works, restrictive occupation conditions or a reduction in usable space may affect liability. The facts and timing are crucial. Some changes will be reflected through the rating list, while others may need to be addressed through a separate process.
Test the valuation against relevant evidence
The Valuation Office Agency, or VOA, uses rental evidence and established valuation schemes to arrive at rateable values in England. In Wales, the Valuation Office also undertakes valuations for the Welsh rating system. A credible challenge should examine evidence that is comparable in location, use, size, condition and relevant valuation date.
This is where assumptions can make a substantial difference. A modern distribution warehouse, for example, should not automatically be compared with inferior or differently located stock. Equally, a secondary office floor with poor natural light, restricted access or short lease terms may not command the same value as a prime nearby suite.
The strongest cases are evidence-led. They identify a specific issue with the assessment and explain why the available rental or valuation evidence supports a different figure.
Confirm reliefs and account treatment
Reliefs can reduce a bill even where the rateable value is correct. Depending on the circumstances, this may include small business rate relief, rural rate relief, charitable relief, empty property relief, improvement relief, retail, hospitality and leisure relief, or discretionary local relief.
Eligibility is fact-specific and reliefs can change from one financial year to the next. If you occupy multiple properties, for example, small business rate relief rules require particular care. Check that the local billing authority has the right occupier, dates of occupation and property details, and that any relief application has been submitted and processed correctly.
Know when a formal challenge is appropriate
A formal challenge is appropriate when there is a clear basis to believe the assessment is wrong or circumstances justify an alteration. It is not the first step in every case. First establish the facts, review the rating information and assess the likely financial benefit against the effort and professional cost involved.
In England, the Check, Challenge, Appeal process applies to most rating list challenges. Broadly, the Check stage confirms the factual details held for the property. The Challenge stage sets out the case for a different assessment, supported by evidence. If the matter cannot be resolved, there may then be an Appeal to the Valuation Tribunal for England.
The process is technical and time limits matter. A weak submission or an incomplete factual case can delay progress and make a legitimate issue harder to present. There can also be strategic decisions around the effective date of any change, the evidence to disclose and whether a negotiated settlement is commercially sensible.
Wales has its own procedures and legal framework for rating appeals. Businesses with property in both England and Wales should not assume that the same process, deadlines or relief arrangements apply across their portfolio.
Avoid the common mistakes that cost occupiers money
The most common mistake is treating the rateable value as a figure that cannot be questioned. Another is focusing only on the final bill, without checking whether the underlying assessment or available reliefs are correct.
Businesses also lose ground by relying on broad comparisons or informal advice. A neighbouring unit may be lower rated for a valid reason: it may be smaller, older, in poorer condition, differently configured or valued using different rental evidence. Comparisons need to be analysed rather than assumed.
Finally, do not leave a potential issue until the property is vacated or a lease event forces a review. Rating deadlines and effective dates can limit the period for which a reduction may be obtained. Early action gives advisers more time to investigate, gather evidence and choose the right route.
When specialist advice makes sense
A straightforward factual correction may be manageable internally where the error is obvious and supporting documents are readily available. More complex cases often benefit from specialist rating advice, particularly where the rateable value is high, the property is unusual, there are multiple sites, or valuation evidence needs detailed interpretation.
A qualified rating surveyor can assess the property, examine comparable evidence, identify relevant legal and valuation arguments, and manage the formal process where appropriate. This is not merely administrative support. The value lies in knowing which issues are likely to succeed, which are not, and how to present a case that is commercially and technically credible.
Get Your Rates Right.com supports commercial occupiers across England and Wales with independent reviews, rating advice and formal appeal representation. The focus is practical: establish whether you are paying the correct amount, pursue a reduction where the evidence justifies it, and avoid unnecessary disruption to the business.
A rates review should leave you with clarity, even where no appeal is warranted. If the assessment is sound, you can budget with greater confidence. If it is not, acting on a well-evidenced case can turn a complex property cost into a controlled and fairer liability.
