Taxman swamped by tsunami of appeals by desperate firms
Firms have condemned the ‘broken’ business rates system as it emerged that challenges to huge rises could take years.The Valuations Office Agency (VOA), which sets the rates firms pay, is still processing appeals from when rates were revalued in 2023, with a tsunami of 130,000 cases lodged before a deadline this March. So it now takes an average of 11 months for challenges to be processed, with some appeals taking 18 months.Businesses challenging their bill must continue to pay at the new level, only receiving a rebate if their appeal succeeds. Analysts at tax advisory firm Ryan predict the Treasury could have to repay £1.8billion after appeals against the 2026 ratings.But before receiving refunds many firms will be out of pocket by tens of thousands of pounds, pushing some to bankruptcy. Prolonged saga: Firms have condemned the ‘broken’ business rates system as it emerged that challenges to huge rises could take yearsTina McKenzie at the Federation of Small Businesses, said the ‘extra burden’ follows ‘unprecedented tax and labour cost increases’.‘We shouldn’t be in a situation where business owners must pay a rates bill that they think is incorrect, then wait months for a ruling,’ she said, adding many small firms ‘don’t have the time or resources to even lodge an appeal’ and would be ‘forced to pay huge bills that might be based on incorrect information.’Allen Simpson, head of UK Hospitality, said: ‘The appeals system is overwhelmed, leaving firms with unacceptable years-long waits for resolutions. The VOA needs better resourcing to deal with its backlog, prioritising the deluge of hospitality appeals inevitably coming its way.’William Lees-Jones, head of Manchester brewer JW Lees, which is appealing against the revaluations that have added tens of thousands of pounds to the cost of its 48 managed pubs, also warned that higher rates could mean fewer jobs for younger workers as firms were forced to cut costs further.The VOA said: ‘We’ve taken steps to streamline our processes and we’re prioritising customers facing financial hardship.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Taxman swamped by tsunami of appeals by desperate firms
