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Ask the Expert… Business Rates

Zoe 25 February 2014

David Ford 1David Ford

Regional Director, CVS

www.cvsuk.com

 

Q: The current economic climate and the increase in budget chain hotels have hindered our success somewhat in recent years. We’re looking to reduce our overheads as much as possible. Should we consider making sure that we are paying accurate business rates bills?

Mr Ford says: Business rates for hotels are generally based on the annual level of trade, excluding VAT, that a hotel can be expected to achieve assuming it is run in an efficient way as of April 1st 2008. If a new hotel has opened in your local area since 1st April 2010, then an appeal can be lodged based on a Material Change of Circumstance to take into account the impact that the new hotel has had on your trade.

Business rates are a major cost for hoteliers. Appealing business rates is often the most effective way of ensuring that a hotel business is paying the right amount. The current system is way out of kilter with economic conditions, and the extraordinary market conditions that hoteliers have weathered over the past five years, along with the Government’s ill-advised decision to postpone the 2015 revaluation has meant that hoteliers could still be paying ‘over the odds’ for a further two years.

Often trade projections are far from today’s reality. CVS have secured fantastic reductions for clients such as Holiday Inn Express in Ilford (£55K reduction), Cedar Court Hotel in Huddersfield (£90K reduction), and Grosvenor Pulford Hotel in Wrexham (£40K reduction).

Hoteliers should consider appealing their rates with a reputable agent like CVS. CVS operate on a no win no fee only basis, with no hidden up-front charges whatsoever. Our success rate is the best in the industry and each hotelier would be assigned a dedicated Account Manager to ensure they are kept up to date with their appeal from start to finish. Appealing your business rates could prove to be the most effective cost-cutting solution for your hotel.