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BEWARE PROPERTY 'RATE REDUCTION' SCAMS

Sanderson Weatherall are warning business occupiers to be on their guard after an increasing number have been duped by unqualified ‘rate reduction’ firms into thinking they can reduce their rates liability .
 
The rise in these scams is believed to be linked to the recent correspondence from the Valuation Office Agency (VOA) to business property owners about their Rateable Value, which is an annual tax attributed to all non-domestic properties.
 
In the run-up to new rates coming into effect in April 2010, business owners are keen to ensure they are being charged the correct amount by the VOA, a fact that has been picked up by these rate reductions firms, often referred to as ‘rates cowboys’ by industry experts.
 
Ratings professionals are now urging caution when employing a property rating advisor.
 
Richard Farr, partner and ratings specialist at Sanderson Weatherall, said: “We are seeing more and more cases of businesses in the region being conned into thinking they can reduce their rates payments after paying an up-front fee.
 
“At this time of year, as the date to query valuations looms, more and more businesses are  trying to ensure they aren’t paying over the odds for ratings and these disreputable operators are taking advantage by promising the earth and not delivering the goods.
 
“In exchange for often large one-off fees, these ‘cowboys’ are promising a drop in rates payments for those that pay them for a valuation. In reality, the fees for the valuations regularly outweigh any savings that can be made on rates payments and in certain instances, businesses can end up paying more than they were initially required to pay.
 
“Local businesses need to be wary of any propositions like this and to make sure that whoever is providing them with rating advice is a qualified professional and member of the Royal Institute of Chartered Surveyors (RICS), the Institute of Revenues, Rating and Valuation (IRRV) or the Rating Surveyors Association (RSA).
 
“Legitimate ratings advisors are specifically trained in the complexities of ratings law and will look at every available angle to reduce rates liabilities, not just the obvious ones.”
 
For those looking to receive an accurate rates valuation, Sanderson Weatherall is advising business property owners to follow these tips:
  • ‘Rates cowboys’ often require an upfront free – be wary of anyone that makes you pay for their services in this way
  • Watch out for add-on fees. Some ratings providers require additional payment for surveys or administration work
  • Conduct a background check to make sure they have the relevant qualifications, accreditations and expertise, as well as appropriate indemnity insurance
  • Some companies use sales people to win valuation work with an effective pitch. Make sure you meet your ratings advisor before you take them on
  • Do not accept a charge for an agent who has lodged an appeal on your behalf – this is free to do
  • Be wary of anyone who says they can reduce the rateable value or your business rates bill without knowing the full details of your valuation
  • Do not take on work from valuation operators who claim to be from the VOA , as the VOA has not had the resource to come into business properties for the last ten years to check discrepancies
If you would like any further advice on your businesses Rateable Value, please contact Richard Farr at Sanderson Weatherall on 0191 269 0115.
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