Thousands may be paying too much warns business rates specialist and could be missing out on significant savings.

Business rates are set to increase again this month and thousands of businesses could be missing out on the chance to claim a rebate according to leading business rates specialists CVS.

This March, businesses across England and Wales will receive a bill from their local authority about their new business rates and firms are facing a 4.6 percent tax hike this year. Research by CVS also shows that between 2005 and 2010, business rates bills increased by £988m or 4 percent.

More than 1.8 million properties in England and Wales pay business rates and in CVS’s experience around half may be eligible for a rebate and a reduction on their rates bill. This is because the new bills are based on an estimated property value and the ‘true’ value can be considerably lower. By submitting a formal appeal, it is frequently possible to agree a reduction with the Valuation Office Agency (the Government agency responsible for managing the property valuation ‘Rating List’). Even if the bill has been paid, a rebate can often be secured by lodging an appeal.

CVS Chief Executive Mark Rigby said: "Business rates are a major burden for industry and typically the third highest cost after wages and rents. For many firms, this hike couldn’t come at a worse time following on from the recent VAT increase and likely raising of interest rates set to follow. The good news is that you don’t have to accept your existing rates bill and can appeal it. Our experience shows that many businesses are paying too much and could potentially save around 10 per cent of the business rates paid if they appealed against the charges. A saving like this on your third biggest overhead can make a real difference in the current economic climate."

CVS is the largest business rates specialist in the UK and has saved its clients in excess of £128 million by managing their 2005-2010 appeal.