Government to bring in ‘self-assessment’ for business rates

The 400-year old £26 billion business rates system is about to be turned on its head for the UK two million business premises owners, according to property consultancy Colliers. It says that following consultations on how to improve the creaking and out-dated system, the government favours a self-assessment system akin to the ‘tax return’ one used for income tax. Business rates for the UK’s 15,000 or more estate agency branches are based on rental valuations calculated every five years and, many agent owners often complain, are wildly inaccurate. In response to this the government launched a ‘Business rates: delivering more frequent revaluations’consultation in March last year. If Colliers’ prediction is true, a self-assessment style system will turn a 400-year-old tax regime on its head, although Colliers notes that it will place ‘the burden of red tape on to the ratepayer to make a correct assessment or face significant penalties’. “The official line is that the Government is looking at all the options,” says John Webber, Head of Rating, Colliers International (pictured). “However, my sources have confirmed that the ‘Big Four’ accountancy firms have been consulted on how to make self-assessment work and what lessons could be learned from personal taxation.…