Case study:

Food Supplier | West Midlands

With a reputation for producing high-quality products, often focusing on traditional British flavours and recipes.

KEY
FACTS

FIVE MONTHS 
ACHIEVED IN

£3,587 
SAVINGS

Warehouse 
PROPERTY TYPE

The Client

Our client specialises in the production and distribution of a variety of food products. The company is known for its range of sauces, condiments, and other food items that cater to both retail and foodservice markets.

Our client has a reputation for producing high-quality products, often focusing on traditional British flavours and recipes.  Based at High Street, Kings Heath. The client understands the importance of managing operational costs, particularly their business rates, to maintain financial efficiency and profitability.

The Problem

The client’s initial business rates assessment by the Valuation Office Agency (VOA) indicated a Rateable Value (RV) of £56,500, which was based on older and inaccurate measurements of the property. Since the original assessment, the premises had undergone a refurbishment, which involved optimising the space and improving its layout. Despite these changes, the previous assessment had not been updated to reflect the actual usable area following the refurbishment.

In addition, upon reviewing the client’s current financials, we found that their annual rent was £45,000, which was significantly lower than what the RV suggested. Given the substantial gap between the rental value and the RV, we believed the assessment needed further adjustment to align it with the true market value of the premises.

The Solution

RVA Surveyors conducted a comprehensive inspection, recording accurate, up-to-date measurements of the premises, reflecting the changes made during the refurbishment. These more precise measurements led to an initial reduction in the RV from £56,500 to £52,000, accurately reflecting the smaller, more efficient space that the client was actually occupying.

Despite this reduction, we recognised that the RV still did not align with the current rent of the property, which was considerably lower. The next step was to submit a formal ‘Challenge‘ of the Check, Challenge, Appeal (CCA) process to the VOA, requesting a further reduction in the RV from £52,000 to £47,000. This reduction would bring the RV in line with the rental value and ensure that the client’s business rates were based on the actual value.

The Outcome

Following the initial adjustment, the RV was reduced from £56,500 to £52,000, which provided the client with savings in terms of reduced business rates. However, our work did not stop there, as we are still awaiting a response from the VOA on the Challenge to bring the RV down to £47,000.

If this further reduction is accepted, it would align the assessment with the true rental value of the premises, resulting in significant savings for the client. Please note the client would’ve received a bigger reduction if they were not already receiving retail relief.

Savings achieved: £3,587 

Surveyor comment

“By accurately recording updated measurements and challenging the overvaluation based on rental evidence, we were able to secure a fairer business rates assessment.”