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Business Rates: How Fair Are They?

by Thomas Nock Martin | Jan 20, 2022 | Tax

taxation outsourcing services

Summary. High street businesses face challenges with unfair rate systems, especially when compared to eCommerce companies paying lower rates. The government’s consultation on Online Sales Taxes aims to balance this disparity. To navigate these complexities, businesses are turning to taxation outsourcing services like us for expert accountancy and guidance.


The English government advocates a fairer rate system for those who own a business and run their operations in non-domestic locations. However, with eCommerce businesses charged significantly lower business rates, this leaves those on the high street at a heavy disadvantage. Leaving companies with no other choice but to seek a solution through outsourcing taxation services.

The government will be consulting on Online Sales Taxes to level out the playing field. However, there’s still a detrimental strain on businesses that do not operate online. This article will focus on business rates and how they affect a company. Additionally, we will draw on the government’s plans for equality. In addition, how we at Thomas Nock Martin can offer support and guidance through our renowned accountancy and outsourcing taxation services.

As leading business growth accountants, we can deliver reliable and accurate tax advice to see you through a successful year. We have first-hand experience and knowledge in business rates, as well as managing finances to meet all fees while staying in a governing position.

What Are Business Rates?

Do you own a business? If so, your operations may occur in one or more non-domestic properties, such as shops, offices, pubs, warehouses, guest houses, or factories. What are business rates calculated on? Business rates are a type of annual tax that’s estimated on the rateable value (RV) of each property that a business owns/occupies. The calculation of RV is on the renting potential of a property.

Through recent advancements in tax laws, businesses and jobs in the retail, leisure and hospitality sectors have been given a 50% discount in business rates up to £110,000. In contrast, high street companies still struggle against online retailers who often pay reduced business rates and corporation tax.

What is the value of business rates? In 2018/19 alone, retailers paid 25% of all business rates that were acquired from UK companies; this equated to £7,625m. Although the nature of these charges is not intrinsically wrong, the disproportionately high fees demanded from retailers is where the issues lie, especially when compared to eCommerce companies.

The Government’s Plans

The government’s taxation services plan to reevaluate business rates every three years. What is business rates relief? Business rates relief refers to the government offering a discount on such fees. For example, small businesses whose RV is less than £12,000 will be required to pay zero fees. Unless they plan to expand into the property next door. This implication may jeopardise business investment as owners will want to avoid such fees.

Business rates are applied in stages up to 2022. Once revealed, if firms have been overpaying on their business rates over the last decade, they will need to subsidise retailers that have been underpaying and retailers whose rateable values have increased. Which is not a justifiable solution.

Thomas Nock Taxation Outsourcing Services

Here at Thomas Nock Martin, we offer matchless accountancy & taxation services in business finance. We excel in accurately identifying solutions to keeping your business afloat, no matter its financial situation. With the government reevaluation of business rates, we can work together to ensure your company has the means to continue operating in its position. For advice on your business rates, call us today on 01384 261300. Also, if you enjoyed reading this blog, you may find this one useful: Correcting VAT Errors

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