BUSINESSES in the region are being warned to be sceptical of so-called "rating consultants" promising to save them money when companies receive assessment of their business rate valuation for the first time.
The words of caution come from the South West Region of RICS (Royal Institution of Chartered Surveyors) who fear that the arrival of the valuations will be the trigger for a growing band of unqualified "rating consultants" to bombard businesses with phone calls, offering beguiling deals to appeal and reduce business rates on their behalf.
A favourite tactic it warns is for the 'consultants' to say they are already acting for a number of near-neighbour businesses, despite the fact most of these organisations will be based many miles away.
South West Regional Director of RICS, Matthew McKaig, said: "Many of them will offer 'no reduction - no fee', but transitional payment arrangements mean that a reduction in rateable value does not always lead to a reduced payment. Their small-print usually focuses on a reduction assessment, not a reduced payment".
However, Mr McKaig admits that the 'consultants' are right to have spotted that most small and medium-sized businesses take no action when their business rates are set or reviewed, although many will qualify for a significant reduction.
"It is a fact that too many West businesses will pay more in business rates than they need to, if they take no action. But the right action to take is seldom to succumb to the siren call of self-styled rating consultants".
"These unqualified 'cowboys' can make their money by grabbing up-front fees, or by demanding payment on acceptance of an appeal for consideration. Every appeal must be accepted for consideration!" said Mr McKaig.
RICS has introduced a new mandatory code of practice for rating advisers (with the Institute of Revenues Rating & Valuation) after hearing a plethora of reports about unqualified consultants taking advantage of businesses.
West businesses can phone the RICS Business Rates Helpline (0870 3331600), and take advantage of a free half-hour consultation with a qualified RICS rating supervisor in their own area before signing anything with an out-of town "rating consultant".
RICS are advising any West business tempted to accept one of these approaches to:
Ask for, and check with, named companies for whom they claim to have secured actual business rates reductions.
Understand that a "rating consultant" can make no meaningful appeal without having met you or visited your property.
Insist on seeing, and studying, a copy of their engagement-contract before buying their product.
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