0:05 AM, 25th August 2023, About 2 years ago 3
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Hello, I have received the form VO6048 from the Valuation Office Agency (VOA) to complete in connection with their review as to whether Business Rates continues to be appropriate for my holiday lets block of 13 flats or whether Council Tax should apply.
Does anyone know the answer to the following areas of confusion?
Do all 13 flats have to meet their “140 days available” and the “70 days actually let for periods under 28 days” criteria, or can a fewer number meet it to retain business rates for the block?
If only 8/9 flats meet the tests how would that determine which tax applied?
When the “70 days let for less than 28 days” test had been met (whether all 13 flats or fewer) can those flats then be let for longer periods than 28 days without disrupting the business rates which we currently have and payment of which is 100% covered by the small business relief?
Finally, does anyone know whether I can send the certified accounts for the year ended 31/3/23 rather than show the individual amounts received for each of the 13 flats?
Apologies for the number of questions, but the VOA website is silent on all these points and your views would be helpful if, and before, I need to contact the VOA.
Jeff
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Judith Wordsworth
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Member Since January 2015 - Comments: 1382
14:02 PM, 25th August 2023, About 2 years ago
They are probably looking to make all the flats separately rated for either business rates or council tax and not the block.
Would have thought though that if x number of flats do not meet the number of days/night criteria then those flats cannot be under business rates but council tax. Similarly if some meet the criteria then can be business rated.
A good place to ask is Facebook Holiday Let Owners Help & Chat https://www.facebook.com/groups/345173179415606
Ian Narbeth
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Member Since July 2013 - Comments: 1970 - Articles: 21
15:14 PM, 25th August 2023, About 2 years ago
I recommend you speak to a specialist rating surveyor. The bill is presumably well into 5 figures. I have often found rating surveyors will be able to negotiate a rates bill down. They normally charge a % of the saving so there is no net cost to you.
Kim Finch
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Member Since January 2019 - Comments: 4
21:05 PM, 27th August 2023, About 2 years ago
We operate a block of 12 apartments under a Rent to SA commercial contract, and were contacted by the VOA. We asked whether they required summary or detailed numbers, to be told that they needed to know the numbers for each apartment.
with our return, we provided a set of 12 months management accounts, showing clearly the totals for the 12 apartments in terms of sales and costs by month ( we don’t account separately for each apartment). It demonstrated that regardless of gross sales values, the directly attributable profit before tax for the 12 apartments was small, and that the business rates should reflect that.
We separately provided occupation statistics ( average for all 12 apartments over a full year was 86%), and also provided our forecast profit for 2023/24, where we are anticipating a significant decline in profit. we explained the reasons for the fall.
Our experience over the last 3 years has been to receive the form, and nothing else has happened. We opened our business in December 2019, and it took until august 2021 before we were running a cumulative profit.
With Business rates increasing each year ( moving from 50% to 75% this year – an increase of 50% – we don’t see much scope for increases in rateable values.