As another year comes to an end there have been a number of changes announced which start in 2017 for local businesses in Essex. One of the biggest ones is the revaluation of commercial premises across the UK for Business Rate purposes. Each commercial property has a rateable value which is set by the Valuation Office. Businesses then pay a percentage of that value as their actual business rates.
As ever when there are changes to a system there will be winners and losers. I have spoken to a couple of property owners in November as they have seen what the Business Rates will be for the premises they own. One has gone up substantially and one has fallen substantially with no real understanding of why or how the calculations have been made.
We are marketing a bar in Colchester at the moment and the previous occupiers were paying nearly £10,000 per annum in Business Rates. For any business that is a direct and fixed overhead which has to be paid for each month. With the new revaluation figures coming into effect in April 2017 the Rateable Value has gone from £21,000 to £11,750. This now means with the increase from £6,000 to £12,000 of the threshold below which you don;t have to pay Business Rates the new occupiers of this property will be able to make a healthy profit of at least an extra £10,000 per annum for the length of the lease that they have. This is a huge difference to businesses and something you should look out for especially if you are looking to buy a business or rent commercial property in the Essex area. For some people it will make the difference between them simply just surviving or indeed thriving.
To check the Rateable Value for a commercial property please follow this link here