Business rates – are you overpaying?

Do you know what the rateable value of your business premises is? And have you checked to see whether you’re entitled to small business rates relief (SBRR)? Generally speaking, it usually applies to businesses trading from just one property.

 

SBRR is designed to help smaller businesses. The rules are different in Scotland and Wales, but in England, this is broadly how it works.

 

If the rateable value of the property is £12,000 or less, you get 100% relief – so you should be paying no business rates at all.

 

If the rateable value of the property is more than £15,000, you get no relief – so you’ll pay full business rates.

 

For properties with a rateable value of between £12,001 and £15,000, relief is given on a sliding scale so, for example, a property with a rateable value of £13,500 (the mid-point between £12,001 and £15,000) will get 50% relief.

 

If your business expands and starts trading from a second property, you can still claim SBRR on property number one (assuming you were entitled to it in the first place) for twelve months.

 

You may continue to get SBRR on this property after twelve months if:

 

  • None of the company’s other properties have a rateable value exceeding £2,899
  • The total rateable value of all properties is less than £28,000 in London or £20,000 outside of London

 

SBRR cannot be applied to an unoccupied property.

 

If you have been receiving SBRR but a recent revaluation has placed you over the £12,000 threshold, you may be entitled to transitional relief which staggers the increase in bills over three years.

 

This link shows you all the types of business rates relief, so be sure to check: https://www.gov.uk/apply-for-business-rate-relief

 

Alternatively, contact your local council to discuss what forms of relief should be available to you. It’s possible to backdate claims too, so this might be a call worth making: https://www.gov.uk/contact-your-local-council-about-business-rates

 

If still in doubt, or if you want a specialist to look at challenging your business rates bill, just call EBA and let us know.

 

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David Elliott

Chartered Accountant, BSC, FCA

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