Farmers with incomes from diversification projects could face significant bills from their local authority if they overlook the potential pitfalls associated with business rates, an agricultural consultant warns.
The rules about holiday lets being valued for business rates instead of council tax could be strengthened in an attempt to close a tax loophole being exploited by the owners of second homes.
Business chiefs on Tuesday attacked the Government’s reforms of business rates, and warned they won’t help ailing large retailers engulfed by the High Street bloodbath.
HM Revenue & Customs has been forced to second a team of experts to the Government department responsible for business rates as civil servants battle to improve the appeals system.
The number of appeals to business rates made since a new system came in last year has crashed more than 99pc as companies struggle to navigate what experts have called an “appalling” process.
A planned cut to business rate rises in England has been brought forward by two years to 2018 by the chancellor.
From April, rates will rise in line with the lower Consumer Prices Index (CPI) measure of inflation, not the Retail Prices Index (RPI).
The number of firms in “significant” financial distress has soared to almost half a million in the past year, prompting worries that tomorrow’s anticipated interest rate hike could send thousands to the wall.
Retailers are moving away from some of London’s most famous shopping streets amid spiralling costs, putting property values at risk, Deutsche Bank’s asset management division has warned.
More than 56,000 small businesses in England will face steep tax rises next year, research indicates.
Business rate increases will total £152m in April, rates specialist CVS said, putting a heavier burden on firms already reeling from rising inflation.
The prediction follows a drop in retail sales last month as inflation hit its highest level in more than five years.
British businesses could face an extra £1bn tax bill next year unless the Government freezes business rates, experts have warned.
Figures from the Office for National Statistics released on Tuesday showed that Retail Price Inflation (RPI) was 3.9pc in September. This figure is the one that will be used to set new business rates values in April, on top of changes to the system that came in earlier this year.
The Government minister responsible for the business rates system has claimed that the new appeals process is “working well”, despite a slew of complaints from users who are struggling to register their properties.
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