23 January 2017
Hair and beauty salons and barber shops are being urged to go online and check out what their new business rates bill will be from April, as an NHF survey has found that many salon business owners haven’t yet done so.
A “revaluation” of business rates took place last year. Because business rates are based on property values, some businesses will see their rates bill rising sharply from April, especially those in London and the south east, while others will see their bills going down.
An NHF survey showed that one third of hair and beauty businesses are not currently paying rates at all because they get Small Business Rates Relief because they have a single property with a rateable value of less than £6,000. The good news is that from April 2017, the relief is doubling so businesses with a rateable value of less than £12,000 will no longer have to pay rates. And businesses with a rateable value of between £12,001 and £15,000 will have their bills calculated on a sliding scale, which will also reduce their bills.
However, the same survey found that more than four out of 10 (42%) hair and beauty salons and barber shops are expecting to be hit by higher rates bills from April. Of those, around two thirds are based in London and the south east.
A significant minority (37%) admitted they had no idea what their new bill would be from April, despite the new rates being available online from the end of September for businesses to check at www.gov.uk/introduction-to-business-rates/revaluation
More than four out of 10 (41%) said they either were or were considering contacting the VOA (valuation office agency), or in Scotland the Scottish Assessors Association, or their local council to challenge their revaluation decision. The appeals system is also changing in April.
NHF chief executive Hilary Hall said: “We’re launching a business rates appeals service to help NHF members challenge their rates on a ‘no savings, no fees’ basis. The fact so many salons have not yet checked what their new business rates bill will be is worrying. It’s very easy to do, but if you want to appeal - or even just avoid a nasty surprise in April - time is running out.”