In the Government’s recent Business Rates Revaluation Consultation, UKHospitality along with the British Institute of Innkeepers called for a wide-ranging reform of the current system. The Government’s consultation has confirmed that business rates revaluations will now occur every three years instead of five which has been supported by hospitality trade bodies. However, hospitality trade bodies have also said that this cannot come at the cost of additional reporting, restrictions on appeals, and penalties’. Hospitality trade bodies have said that they appreciate the usefulness of the Government’s consultation. But they feel that there needs to be a wider reform to address the unjust and imbalanced system with a need to move taxation away from property.
Why do trade bodies want a reform?
In the current system, the hospitality sector overpays by 300% relative to its turnover which amounts to £2.4bn. Understandably, the hospitality sector believes this is particularly unfair considering the effect the pandemic has had on hospitality businesses. This has piled up the pressure on indebted businesses as they start to rebuild after being closed for the majority of the last 16 months. The fact that they are overpaying on their business rates certainty doesn’t help.
Hospitality trade bodies have expressed a number of concerns about the proposals in the consultation which would increase the administrative burden on hospitality businesses. They believe a broader review is needed to redesign the business rates system to reduce the administrative burden and not increase it.
Hospitality trade bodies propose that businesses should not be asked for any additional information than they currently do in the revaluation process particularly as they will now be more frequent. Furthermore, they believe that the Valuation Office Agency should improve its technological systems to help with data returns.
How can we help?
At Hawsons we have a dedicated team of leisure and hospitality accountants at our offices in Sheffield, Doncaster, and Northampton.
As the sector continues to become ever more challenging, with changes in the fierce global, nation, and regional competition leading to unrelenting pressures to maintain margins, it is more crucial than ever to seek sound and proactive advice.
At Hawsons our dedicated team of specialist hotel, pub and restaurant accountants offer professionals advice and guidance that is tailored to their individual needs and requirements, providing a full range of proactive services.
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