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Self-Catering Businesses Removed from Rates System – ASSC Calls for Urgent Reform

The Association of Scotland’s Self-Caterers (ASSC) has today released damning new evidence revealing the widespread and unjust removal of legitimate self-catering operators from the Non-Domestic Rates (NDR) register, in what has been described as a system “in crisis.”

Based on a survey of 333 self-catering businesses conducted between 8–13 April 2025, the findings expose significant failures in communication, appeals processes, and administrative procedures. These failures have led to overwhelming financial hardship, emotional stress, and in some cases, the potential collapse of long-standing, family-run businesses.

Key Findings Include:

  • 39% of respondents were removed from the NDR register due to alleged non-compliance.
  • 95% of those could prove they met the 70-night occupancy threshold.
  • 63% never received formal notification of their removal.
  • 81% were hit with unexpected Council Tax bills – some as high as £100,000, often charged at double rate.
  • 67% reported serious stress or anxiety linked to the ordeal.

Businesses affected span the length of the country, with the highest concentration in Argyll & Bute, followed by the Highlands, Scottish Borders, and Aberdeenshire. But the issue is truly national, affecting operators in areas from Edinburgh to Eilean Siar.

“We’re Being Punished for Trying to Comply”

Operators who followed the rules, submitted documentation, and continued to operate in good faith now find themselves penalised due to administrative errors and lack of due process.

“We’ve traded for over 40 years and now face selling our home and business,” said one respondent. “We complied – but nobody listened.”

Many reported never receiving letters of removal, being misinformed about their appeal rights, and being blindsided by large Council Tax demands. In some cases, reclassification led to immediate loss of eligibility for the Small Business Bonus Scheme, further exacerbating financial strain.

“This is not just a technical issue – it is an existential threat to small accommodation providers and the wider rural tourism economy,” said ASSC CEO Fiona Campbell.

Emotional and Operational Toll

The human impact of this crisis cannot be overstated. Respondents reported sleepless nights, panic attacks, and stress-related illness. One said simply, “It’s broken me.”

Others described spending weeks dealing with conflicting Council and Assessor communications, while still trying to run their businesses and support staff.

“This issue has pulled me away from the very work that keeps us afloat,” said one operator. “We’re not dodging payments – we’re trying to survive a broken system.”

ASSC Demands Immediate Action

In response, the ASSC is calling for an urgent package of reforms, including:

  • An immediate moratorium on all ongoing reclassifications.
  • Transparent and fair appeals processes, with plain-English guidance.
  • A full audit of administrative costs and failures.
  • A public admission of systemic communication breakdowns by Assessors and local authorities.
  • Proper support mechanisms for affected operators, including hardship review panels.

The ASSC is also urging a review of cross-departmental data sharing, noting that STL licensing data could help prevent unjust removals.

“Enough is enough. A just, consistent, and competent system must now be restored,” said Campbell.

The full briefing is available below. Operators affected by removal from NDR are encouraged to contact the ASSC for support.

The ASSC hosted an online event to support self-catering businesses affected by removal from the Non-Domestic Rates (NDR) Register for allegedly failing to provide evidence of meeting the 70-day occupancy requirement during the 2023–2024 period.

Led by Chief Executive Fiona Campbell, with guest Joanna Miller, Solicitor and Licensing Expert, the session covered:

  • Legal advice on the current situation
  • Guidance on how to collate and submit the correct evidence
  • Details of how the ASSC is advocating for and supporting impacted operators

You can watch the video or download the slides here. You can contact Joanna Millar here to get support in securing an affadavit that you did not receive the Assessors letter. Do mention your ASSC membership for a discount.

Check here for everything you need to know about what to do if you have been removed from the NDR Roll, how to get your business reinstated and Key Dates & Guidance on Submitting Annual Evidence to Stay on Non-Domestic Rates.

“This is not about dodging rules. It’s about defending fairness. You have the right to be treated with respect, to receive proper notice, and to challenge injustice. We are here to help you do that.”

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