Small Business Rates Relief

  

The scheme was introduced on 1 April 2005 and is available to businesses who meet the qualifying criteria. The scheme is funded by ratepayers who do not meet the criteria.

Eligible businesses with a rateable value of below £5,000 will get 50% rate relief on their liability. This relief will decrease on a sliding scale by an estimated 1% for every £100 of rateable value over £5,000, up to £10,000. Precise details can be obtained from your local authority.

How do I know if I qualify?

Business ratepayers qualify if they occupy just one property in England with a rateable value of less than £10,000. Additional properties don’t count as long as none has an individual rateable value of more than £2,200 or as long as the combined rateable value of all properties under £15,000 (£21,500 in London).

Although the threshold for the combined rateable value depends on the location of the main property, this property is the only one that will have the relief applied to it. The other properties’ charges are calculated using the standard multiplier (41.5p in the pound).

There’s also a buffer zone for ratepayers whose single property’s rateable value is above £10,000 but below £15,000. If your business falls within the buffer zone, the rates bill will be worked out using the same small business non-domestic rating multiplier of 41.5p in the pound.

Summary…

Relief is only available to ratepayers with either:

1. One property, or

2. One main property and other additional properties providing those additional properties have rateable values less than £2,200, and

3. The total value all the properties remains under the appropriate threshold (£15,000 outside London or £21,500 within London)

 

How to apply…

Ratepayers have to take the initiative and apply themselves. Local authorities are under no obligation to make ratepayers aware of the reliefs available, though many publish details on their websites.

Applications have to be submitted to the local authority concerned and must be sent in no later than six months after the end of the financial year concerned (and no earlier than six months before its start).

If you fall within the buffer zone of financial limits, an application must be sent in so their rate bill can be calculated using the small business non-domestic rating multiplier. If anything happens to change the rateable value of a property, such as redevelopment or rebuilding work, which means the building does qualify for rate relief, an application can be submitted up to six months after the date that the alterations are notified to the local authority.

Don’t be tempted to change your details to skew your entitlement. Falsely applying for relief is a criminal offence.

By Martin Huckle