Are business rates too high for your organization?

Checking your business rates bill is worthwhile because, according to recent data, more than half of appeals result in a reduction

Both positive and negative news can be found in the most recent government data on business rate appeals. The number of businesses filing cases has increased, which is a drawback. In the first three months of this year, nearly 130,000 business owners started the process, which is five times more than in the fourth quarter of 2025. This will likely cause delays in the processing of claims. Positively, the data also reveals that 57% of businesses that challenged their business rate bills eventually obtained a reduction; in other words, you have a good chance of winning.

The Valuation Office Agency (VOA) released the statistics at the end of May, and they highlight how crucial it is to promptly review your business rates assessment. On April 1, new evaluations of the rateable value of over two million business properties in England and Wales went into effect. Your business rates bill is determined by this rateable value, which is based on the VOA's estimate of the commercial rent that could be charged on each property.

Part of the reason for the increase in claims in the first quarter is that the deadline for appealing business rates set after the previous VOA revaluation, which occurred in 2023, was March 31, but it is now too late. However, the rateable value that was implemented in April is subject to challenge. You may be eligible for a reduction if you can demonstrate that the VOA is overestimating the amount of rent you are paying for your business property or, if you are the property's owner, how much you could rent it out for.

Examine, contest, and appeal your business rates.

There are three steps in these situations. The first step is called a "Check." In essence, all you're doing is asking the VOA to verify the accurate information it has about your property so you can make sure you're not being overcharged due to false information. The majority of businesses then proceed to stage two, referred to as "Challenge," because relatively few checks result in a reduction.

You have four months after receiving a check to submit a challenge. This is your chance to provide proof that your rateable value was estimated incorrectly. For instance, information about the agreed-upon open-market rent for the property or information about other leases on comparable properties in the area could be included. Alternatively, your property may have undergone a significant alterationfor example, you may be using it for a different purposeor local developments may have had an impact on its value.

The independent Valuation Tribunal Service may hear appeals of cases that fail at the Challenge stage. You must submit your claim within four months of receiving the Challenge decision, and there is a fee of up to £300 to initiate the third stage of the appeal process. If you win, you will receive your money back.

Although you can theoretically handle every step of a business rates case on your own, many companies designate a qualified agent to handle the procedure on your behalf, especially if they go to appeal. Using their expertise to increase your chances of success, agents can handle the work for you and advise you on whether it's worthwhile to bring your case.

Make sure the agent you select is trustworthy. Information about companies that follow their code of best practice and professional standards can be obtained from the Royal Institute of Chartered Surveyors.

Finally, it's crucial to remember that these procedures may cause your business rates bill to increase rather than decrease. Though not unheard of, this is comparatively uncommon. Make sure you don't provide any evidence that could lead the VOA to believe that your rateable value has been underestimated.