Changes to ratepayer reporting duties was one of the changes introduced by the Non-Domestic Rating Act 2023. The timescales for the reporting duties were confirmed in autumn 2024 and will apply in England and in part, Wales.
At present, there is no legal duty on business rate-payers to notify the VOA (Valuation Office Agency) of anything on their property that would be liable for business rates or changes to their property that would have an impact on the property’s rateable value and thus on the business rate bill.
From 1 April 2026 two new reporting duties will be phased in and formally activated and mandated by 1 April 2029.
Although we still do not know all of the details, NFU members with non-agricultural diversifications are advised to seek advice from NFU CallFirst on 0370 845 8458 whether they pay business rates or not.
This is especially so if they are contacted by the VOA in relation to registering a property or taking part in the initial testing stages of the implementation. The NFU works with specialist rating consultants who will be able to assist further.
Duty to provide information about changes to a property
To aid the VOA in gathering information used to assign rateable values now that there are more frequent revaluations, ratepayers will be obligated to notify the VOA of any changes to the occupier and property characteristics that affect the assessment of their property for business rates. These include changes to:
- The occupier
- The lease or rent
- The property – extensions, demolitions, refurbishments
Duty to provide an annual confirmation on their property information
As well as a duty to notify the VOA of changes to their property, ratepayers will also be subject to a duty to provide an annual confirmation of the current information held on their property.
Who do these duties apply to?
The duties detailed above only apply in England. They do not apply to Wales.
These reporting requirements will not apply to properties that are exempt from business rates (such as agricultural land and buildings). However, they do apply to:
- properties that are on the rating list but for which the business rate liability is zero, for example if the property receives 100% Small Business Rates Relief.
- properties which should be on the rating list, but for some reason are not (for example rateable activity is taking place but has not been notified).
Duty to provide a taxpayer reference number
The provision of a taxpayer reference number will apply in both England and Wales.
The government will require business ratepayers to provide a taxpayer reference number including those who benefit from Small Business Rate Relief. This may be:
- a self-assessment unique tax reference;
- a partnership unique tax reference;
- a corporation tax unique tax reference;
- a VAT registration number; or
- an NI number.
This duty will apply in both England and Wales and must be provided via an online system within 60 days of becoming the ratepayer for a property.
Penalties
A penalty of £100 will be charged for a failure to provide a taxpayer reference number, followed by an additional £60 per day after a further 30-day grace period.
The maximum total penalty will be £1,800, or £3,000 for false information provided deliberately or carelessly.
There will also be penalties for non-compliance in reporting. These will vary depending on the Rateable Value of the property and the length of the non-compliance.
Expected timeline for implementation
The duties are to be implemented gradually from April 2026. It is expected they will apply to all ratepayers by April 2029.
| From April 2026 |
|
| Late 2027 |
|
| Late 2028 |
|
| April 2029 |
|
NFU members can read more detail in this member-exclusive briefing: Business Rates reforms – reporting duties
