From April 2017, approximately 500,000 small firms will be hit by rises of up to 300 per cent in a single year, as a result of the government's plans to overhaul the business rates system, a move which small businesses are calling “shambolic”.
The changes follow a review of the way officials calculate business rates which are charged on most non-domestic properties including shops, offices, pubs, warehouses, factories, and holiday rental homes and guest houses.
Whilst the government is pressing ahead with the changes, it has admitted that its online calculator, which tells small businesses how much they will need to pay, is not always accurate.
Speaking to the Daily Mail, Jerry Schurder of business rates specialist Gerald Eve, says: "The system is horrendously complicated and massively unfair.
"The Government keeps saying no one will pay more than 5 per cent but lots of them will see much bigger rises because they are no longer eligible for small business rates relief."
Chas Roy Chowdhury, head of taxation at the Association of Chartered Certified Accountants, adds: "It all feels quite shambolic at the moment.
"The Government needs to do more to explain to small businesses about how these increases are being calculated or stop the clock and rethink this policy."
Specialist advisers to UK SMEs
At Beavis Morgan, we have extensive experience of providing specialist advice and planning to small and medium sized (SME) businesses. We work with our clients to put processes in place which make it easier to run your business and to maintain effective management of your company’s working capital. We also assist with management accounts, enabling better control of your financial situation and awareness of the business in real time, enhancing planning for the peaks and troughs.
We are on hand to assist you to remain profitable and increase your net worth.
Contact Steve Govey or your usual Beavis Morgan Partner for further information about how we can assist you and your business.