Farmers face new business rates duties — with fines up to £3,000

Farmers with diversified businesses face new legal reporting duties from April — with fines of up to £3,000 for failing to comply.

The NFU is urging farmers with non-agricultural activities to seek advice ahead of the changes, which will apply even to some businesses not currently paying rates.

From 1 April 2026, new rules will begin to require ratepayers to report changes to their property and confirm details annually, as part of reforms introduced under the Non-Domestic Rating Act 2023.

The changes are designed to support more frequent revaluations and improve the accuracy of business rate assessments.

At present, there is no legal duty for ratepayers to notify the Valuation Office Agency (VOA) about changes affecting their property’s rateable value.

That will change under the new system.

Ratepayers will be required to report updates such as changes to occupiers, lease or rental arrangements, and physical alterations including extensions, demolitions or refurbishments.

They will also need to provide an annual confirmation that the information held about their property is correct.

The NFU is advising members to contact its CallFirst service for guidance, particularly if approached by the VOA during early testing phases.

Agricultural land and buildings will remain exempt from business rates.

However, the new duties will apply to diversified enterprises, including properties on the rating list with zero liability — such as those receiving full Small Business Rates Relief.

They will also cover cases where rateable activity is taking place but has not yet been formally registered.

A further requirement will see ratepayers provide a taxpayer reference number within 60 days of becoming liable for a property.

This may include a self-assessment or corporation tax reference, VAT registration number or National Insurance number, and will apply in both England and Wales.

Failure to comply could result in significant fines.

A £100 penalty will be issued for not providing a taxpayer reference number, followed by £60 per day after a 30-day grace period. The maximum fine will be £1,800 — rising to £3,000 where false information is submitted deliberately or carelessly.

Additional penalties will apply for failing to meet wider reporting requirements, depending on the property’s rateable value and the length of non-compliance.

The findings also highlight clear solutions, with early engagement and accurate reporting expected to reduce the risk of penalties.

The system will be phased in from April 2026, with voluntary use from 2027 and full enforcement by April 2029.

The NFU is urging members to act early to avoid penalties as the new system is rolled out.