Hair and beauty salon owners are being warned that the rate they pay for their business could change from April 2017 as the business rates revaluation comes into force.

During the autumn, many salons began to receive notices from the government’s Valuation Office Agency warning that an “uprating” of business rates was in progress. From then on, hair and beauty businesses have been able to check online what their new rate will be to prepare for any change.

Further challenges for salon businesses

The other possible challenge for a small hair and beauty business is whether the revaluation takes it above the £12,000 threshold for 100% Small Business Rate Relief. This could mean that a salon has to start paying rates for the first time.

For some salon owners, it could mean the opposite: that they move below the £12,000 threshold and become eligible for 100% rate relief as a result. However, the government has also emphasised that a change in rateable value may not necessarily mean a change in business rates.

The VOA’s warning to hair and beauty businesses

The VOA has emphasised that they should be contacted immediately if any of the details are incorrect once the draft revaluations have been reviewed. Finding any mistakes before a local council calculates a bill will be easier to have any errors amended.

Additionally, if a reviewed revaluation is wrong, reasoning will need to be provided, and an alternative rating or valuation will need to be put forward and backed up with supporting evidence.

The new appeals system for salons owners

In England and Wales, a rates bill that has been received, can be appealed against to an independent Valuation Tribunal. In Scotland, a rates bill can be appealed against through a local Valuation Appeal Committee, the Lands Tribunal and, ultimately, the Lands Valuation Appeal Court.

Because this can be complex and time consuming, the NHF has launched an appeals service for members through specialist rating surveyor, Mark Radford.

The key points to remember on business rate relief

  • Currently a hair and beauty business can get 100% Small Business Rate Relief.
  • This means that it won’t have to pay any business rates at all if it only uses one property, and that property’s rateable value is less than £6,000.
  • This is due to double for businesses from April 2017 to £12,000 and be made a permanent relief.
  • Any businesses with a rateable value of between £6,001 and £12,000 also currently receives tapered relief, meaning that the relief gradually decreases from 100% to the business paying full rates.
  • From April 2017, this tapered relief will now cover properties with a rateable value of between £12,001 and £15,000.
Check online to find out what your business rate will be by simply visiting the VOA's website and typing in your details.