The overhaul of business rates which came into play earlier this year created a host of worrying headlines.
Stories of companies facing closure as the result of large hikes to their bill – a whopping 1,361 per cent according to one report in Lancashire – were commonplace.
But there is help at hand. As part of this overhaul, from April 1 this year the thresholds for Small Business Rate Relief also changed.
And it is worth small businesses looking closely at those changes to see if they are now eligible to claim the relief from their local authority.
Here is our simple guide to the changes. To find out more and to discuss the process of claiming, please contact Eddie Singleton or Michael Barker on 01772 430000:
You can get small business rate relief if:
- Your property’s rateable value (RV) is less than £15,000, and
- Your business only uses one property – however, you may still be able to get relief if you use more
If you occupy either a single property with an RV less than £15,000 or a main property, plus additional properties with RV’s that do not exceed £2,899, and totalling less than £20,000, then you are still eligible to apply.
Eligible small businesses occupying property with an RV less than £12,000 can get 100 per cent of the relief.
Ratepayers in properties with RV’s that are between £12,000 and £15,000 receive relief starting at the full 100 per cent and going down to one per cent.
When it comes to properties with an RV between £15,001 and £50,999, the Small Business Multiplier (46.6p) is used to calculate the amount.
And if the 2017 revaluation means you no longer get small business relief, your bill won’t rise by more than £50 a month from April this year to March 31 in 2018.
Here is an example of how the changes work. If your rateable value is £13,500, you’ll get 50 per cent off your bill. If your rateable value is £14,000, you’ll get 33 per cent off.
When you get a second property, you’ll keep getting any existing relief on your main property for 12 months.
Also, you do not have to make a fresh application if you are already getting relief.
Further relief is also available to Charities and community amateur sports clubs which can apply for charitable rate relief of up to 80% if a property is used for charitable purposes and can extend to 100% at the discretion of local councils.