Business rates for Equestrian businesses to treble in April 2017

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anoif

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Business rates are changing from April 2017 .

I run a predominately DIY Livery Yard in West Berks, we have 40 stables and work on a low profit margin , bums on seats turn over basis .

Government has offered small business relief to businesses rated at £12,000 or below, but the reality is they have trebled Yards rateable values so hardly anyone will fall under the threshold.

The Rating Valuation Office have trebled my rateable value, we were previously rated at £12,500 they have applied a rateable Value of £34,250 to my Yard as from 2017.

I have been in touch with Valuation Office and my local Council and they have confirmed that these laws will be enforced as from next year.

My clients cant absorb an increase of these proportions

Has anyone else investigated this?
 
I think you got off quite lightly with your change of rateable value . I guess it should be nearer £45k.
If it was me I would not be appealing.
 
Reading the OP's post and the sole reply so far, is the norm that business rates work out at £1000 per year per livery (stable)? If so that's £20 a week to be found per livery. Or to be found some other way. Big ask. No wonder businesses are going under. Very unfair.
 
Suechoccy said:
Reading the OP's post and the sole reply so far, is the norm that business rates work out at £1000 per year per livery (stable)? If so that's £20 a week to be found per livery. Or to be found some other way. Big ask. No wonder businesses are going under. Very unfair.
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No ,business rates valuations are arrived at as equivalent to an open market rent for the establishment.
Although the valuation is £34,500 a year this is not the business rates level.
This is arrived at by multiplying the valuation by £0.484 so in the above example the rates would be £16,698 or £ 417.45 per box per annum a little over £8 box/week

Sorry I dont think its unfair every other business has to pay on the same principle. Where it is unfair is the number of small yards operating under the radar so these bigger yards cannot compete with them, it should be a level playing field.
 
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popsdosh said:
No ,business rates valuations are arrived at as equivalent to an open market rent for the establishment.
Although the valuation is £34,500 a year this is not the business rates level.
This is arrived at by multiplying the valuation by £0.484 so in the above example the rates would be £16,698 or £ 417.45 per box per annum a little over £8 box/week

Sorry I dont think its unfair every other business has to pay on the same principle. Where it is unfair is the number of small yards operating under the radar so these bigger yards cannot compete with them, it should be a level playing field.
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Its a £64 per month increase per unit ,I don't charge my liveries for storage ,and use 13 of boxes as stores for DIYs, so its an increase of £64 per month per rentable stable. Pretty unaffordable increase for my customers ,who are on a tight budget.
 
anoif said:
Its a £64 per month increase per unit ,I don't charge my liveries for storage ,and use 13 of boxes as stores for DIYs, so its an increase of £64 per month per rentable stable. Pretty unaffordable increase for my customers ,who are on a tight budget.
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Just enlighten me as to why you should be treated differently to any other livery yard! Maybe we should all be helping providing social housing for horses! If the figures dont stack up they either pay or move on. I still think they have been lenient with your valuation . On the open market most yards will achieve a rent of £25/box/week with modest facilities which would make your rateable value nearer £52K
Your maths are not great as working on your figures its an increase of £32 box used a month they may be empty boxes to you but are still chargeable by the the Valuation office . Maybe the biggest shock to you is the loss of rate relief because your business is bigger than those deemed to need it im sorry thats a fact of life and when budgeting should have been allowed for The small business relief was put in place to help a problem it can in theory be taken away at any time. I guess your liveries dont begrudge the proportion of their other shopping bills that go towards paying business rates!
 
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I have just been onto Gov.website and seen that much bigger yards than mine have been rated at £3,700 for 2017. Apparently I am not being treated the same,and some have indoor arenas which we don't .I agree if it were a fair brush stroke across the board and all yards had been rated fairly then it is a competitive market . Out of interest do you run a yard ?
 
Horse owners going to have to find more money it's that simple things are only going to get worse livery prices are going to contract and prices are going to rise .
 
It's things like this that make you realise just why so many small businesses are struggling, it's not just equine businesses too, I know people with small businesses that have had to pack up their shops etc and work from home. It's such a shame, I always try to support smaller local businesses.
 
tristar said:
horse establishments should be zero rated and horses classified a agricultural animals.
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Why should horse owners get their hobby subsidised, horses are not an agricultural animal, except for the few that are and will already be exempt from business rates/ vat, as the owner of a small yard it would be great to be able to claim back vat/ pay no rates/ reduced utility bills, etc but in reality why should my liveries be able to have their horses at a reduced cost when it is something they choose to spend their money on, do for fun, it has no link to food production and benefits no one other than themselves.

I do think Riding schools should be treated differently as they do offer a service to so many people and I know how many are crippled by business rates, a small RS near me closed when they were told the rates would be £35k a year, I don't think she was turning over much more than that running a tiny RS with only a few ponies plus some liveries but they rated her barn/ outdoor arena by the square foot and there was nothing she could do to cut back short of demolishing the barn, she closed down and sold up.
 
well for one thing it benefits you, the farrier, the vet , the back person the tack shop the feed person,the horse breeders, the show organizers, the trailer manufacturers, the 4x4 makers, the stable mat makers, the stable builders, the arena builders, the instructors, people keeping horses in one way and another is big industry, whether they are commercial or personal

many other countries rate horses as agri business to the benefit of the citizens
 
tristar said:
horse establishments should be zero rated and horses classified a agricultural animals.
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I'm not sure why you think I should pay more on my domestic rates or more in shops in town so that someone can keep a horse at livery for less money? Horses are a luxury, not a necessity.
 
tristar said:
well for one thing it benefits you, the farrier, the vet , the back person the tack shop the feed person,the horse breeders, the show organizers, the trailer manufacturers, the 4x4 makers, the stable mat makers, the stable builders, the arena builders, the instructors, people keeping horses in one way and another is big industry, whether they are commercial or personal

many other countries rate horses as agri business to the benefit of the citizens
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It also DIS advantages every other person and business that has to pay higher rates to make up the shortfall. You could make exactly the same claim for any business sector.

I'd like to see the cost benefit analysis for France or Germany if you have it?
 
tristar said:
well for one thing it benefits you, the farrier, the vet , the back person the tack shop the feed person,the horse breeders, the show organizers, the trailer manufacturers, the 4x4 makers, the stable mat makers, the stable builders, the arena builders, the instructors, people keeping horses in one way and another is big industry, whether they are commercial or personal

many other countries rate horses as agri business to the benefit of the citizens
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No, other countries treat horses as agri because they eat them. However they still pay local taxes as we do business rates.
I agree with you YCBM why should peoples hobbies be financed by others paying their business rates and council tax.
Nearly all the people listed in your list would also be paying out more to make up the shortfall as they will be paying business rates! LOL
 
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, i`m entitled to my opinion which is horse should be agri animals.

other countries are for the people who live there, its about their quality of life, other countries don`t go under they`ve got the brains to organize things to the benefit of all the people who live there, some things can`t be evaluated by cost benefit analysis, quality of life.

you would`nt be paying out more you might be paying out less, but then to appreciate the possibilities of that one would need an open mind and some true business sense, an ability to see a much bigger picture.

and as for the`laugh out loud` bit, its me that doing that now, at the missed opportunity gb has had to lead in europe in the horse business and missed out big time, how very short sighted
 
tristar said:
, i`m entitled to my opinion which is horse should be agri animals.

other countries are for the people who live there, its about their quality of life, other countries don`t go under they`ve got the brains to organize things to the benefit of all the people who live there, some things can`t be evaluated by cost benefit analysis, quality of life.

you would`nt be paying out more you might be paying out less, but then to appreciate the possibilities of that one would need an open mind and some true business sense, an ability to see a much bigger picture.

and as for the`laugh out loud` bit, its me that doing that now, at the missed opportunity gb has had to lead in europe in the horse business and missed out big time, how very short sighted
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Oh please go and live in france and see how much tax and social security you have to pay! The states see if you can afford health care. Germany ,Good luck!
You wont see the same level of accessible horse ownership in any of those countries!
 
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anoif said:
Its a £64 per month increase per unit ,I don't charge my liveries for storage ,and use 13 of boxes as stores for DIYs, so its an increase of £64 per month per rentable stable. Pretty unaffordable increase for my customers ,who are on a tight budget.
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A little yard i was at knocked down some stables to form a shed, which reduced the rates.
The racing yards in Newmarket are being re asessed , so many will go out of business ........... not sure who is benefiting from this massive hike in income for the UK government.
 
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popsdosh why don`t you go and live there? you might find out then how wrong you are, then you might know what you are talking about.

but then if you stay in england you can see how much tax and ridiculous rates you can pay, please stay there and be miserable and don`t spoil another country.

what justification can there be for tripling someones rates as op says is happening
 
ycbm said:
I'm not sure why you think I should pay more on my domestic rates or more in shops in town so that someone can keep a horse at livery for less money? Horses are a luxury, not a necessity.
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That is true, however they are also one of the largest industries in the UK, so by strangling the industry the Govt is killing off small businesses. I do not think that is a good idea, and no way will the small businesses in towns have their rates reduced by 50% due to extra payment by horse businesses.
The current system is not equable, I used to pay huge rates on a shop which had a tiny turnover, due to its proximity to the railway station though this was of no benefit to me. However, to suddenly impose this is frankly outrageous. Why don't they pursue Amazon and all the big chains who have out of town "sheds", purely and simply to avoid rates in cities. Some businesses require more space than others, and really we could end up reducing stabling size to the detriment of welfare.
If a significant reduction in horse ownership is caused by these rates, who, in the long term will benefit?
 
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Bonkers2 said:
That is true, however they are also one of the largest industries in the UK,
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I don't think so. I can't find horse related business listed separately anywhere, and whatever sector they lump it into doesn't come in the top ten in the UK. Can you point me to where you get this from?
 
I think this is just another nail in the coffin for a lot of ordinary people being able to afford to have a horse, I don't think it will create a level playing field in any way at all. I don't know what will happen to all the horses owned by ordinary people and all the professionals who provide services to them when we are all finally priced out of the market, but I am sure someone will figure that out when it happens.
 
Bonkers2 said:
That is true, however they are also one of the largest industries in the UK, so by strangling the industry the Govt is killing off small businesses. I do not think that is a good idea, and no way will the small businesses in towns have their rates reduced by 50% due to extra payment by horse businesses.
The current system is not equable, I used to pay huge rates on a shop which had a tiny turnover, due to its proximity to the railway station though this was of no benefit to me. However, to suddenly impose this is frankly outrageous. Why don't they pursue Amazon and all the big chains who have out of town "sheds", purely and simply to avoid rates in cities. Some businesses require more space than others, and really we could end up reducing stabling size to the detriment of welfare.
If a significant reduction in horse ownership is caused by these rates, who, in the long term will benefit?
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As I see it this is one example and we dont know all the circumstances. I suspect looking at the figures they have been getting off lightly. These reassessments happen every 5 years and cover all businesses. You cannot assume all equine businesses are suffering the same hike in valuations based on one example and there not . Having had a quick look most around here have stood still or had a small increase and those have been ones that actually had improved their facilities. We can all get excited if we take the headline at face value.
 
tristar said:
popsdosh why don`t you go and live there? you might find out then how wrong you are, then you might know what you are talking about.

but then if you stay in england you can see how much tax and ridiculous rates you can pay, please stay there and be miserable and don`t spoil another country.

what justification can there be for tripling someones rates as op says is happening
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Im going by what people have told me who have done it, most have come back relatively quickly every country has its ridiculous taxes Britain is better than a lot. Oh dear why make it personal? shows a certain desperation.

As for the tripling of rateable value that is in no way the norm as others would have been screaming from the rooftops ages ago ,we havent heard all the circumstances that led to it. I certainly cant find any examples close to me.
 
tristar said:
horse establishments should be zero rated and horses classified a agricultural animals.
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No they are not agricultural animals they are a sporting animal .
The best way forward would be to have a category for sport premises that allows for the large space needed but low return many of these businesses generate .
It's a larger question than horses small business is being squeezed in market towns because of the crazy rates .
To calculate rates on the floor area a buisiness uses is fundamentally unfair it would be much better to calculate it in a way that linked to how much money the business is making .
Rates will begin to seriously impact the growth of small business very shortly .k
 
Bonkers2 said:
http://www.beta-uk.org/pages/industry-information/equestrian-trade-news.php
and
http://www.thetba.co.uk/wp-content/uploads/2014/10/Economic-Impact-Study.pdf
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One of those pointers is to a trade magazine. The other says that the racing TB industry in this country contributes 281 million and employs ten thousand people. Though I don't see any racing stables protesting that a massive rates hike this year is going to put them out of business?

Either way, by economic contribution or employment, the horse industry isn't one of the largest industries in the UK I'm afraid, and don't have any real power to press for more favourable treatment on rates.
 
Goldenstar said:
To calculate rates on the floor area a buisiness uses is fundamentally unfair it would be much better to calculate it in a way that linked to how much money the business is making .
Rates will begin to seriously impact the growth of small business very shortly .k
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I've no idea how they do arenas or indoor schools, but that's exactly what popsdosh has described for stables.

The OP, it seems to me, has options to charge her customers a sensible rate for the use of two stables, putt horses in the stables instead of stuff, or remove the stables being used as sheds.
 
popsdosh said:
As I see it this is one example and we dont know all the circumstances. I suspect looking at the figures they have been getting off lightly. These reassessments happen every 5 years and cover all businesses. You cannot assume all equine businesses are suffering the same hike in valuations based on one example and there not . Having had a quick look most around here have stood still or had a small increase and those have been ones that actually had improved their facilities. We can all get excited if we take the headline at face value.
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The Racing Post had an article about the effect in Newmarket, where the whole economy is related to the industry ......... with World Class facilities, and personnel, some yards are facing, across the board a 53% increases in rates, and of the businesses in Newmarket, 500 [!] are considered to be "marginal businesses".
Stuart William rates are doubled, to £64K, he also pays a fee per horse to Jockey Club for use of the training grounds, which are expensive to maintain, plus rent etc etc. Yes horse ownership is a luxury for some people, for others it is their business.
Racecourses are facing a 50% increase, so we can look forward to more price hikes there. Stabling has to be provided for horses, but are left empty on non race days. There is little else they can be used to increase their income.
How is all this extra income to be spent? Certainly not on providing an infrastructure for horse owners. More likely for car owners: by the way, cars are a luxury item too!
 
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ycbm said:
I don't think so. I can't find horse related business listed separately anywhere, and whatever sector they lump it into doesn't come in the top ten in the UK. Can you point me to where you get this from?
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It's third in rural areas .
Agriculture tourism horses .
 
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