Business rates can represent a significant financial burden for companies. This article looks at the available discounts, and who is eligible for them.
Business rates are a tax that can be as much as 50% of a business’s rent, however many companies are entitled to rates relief.
Business rates are essentially a tax paid on properties used for non-domestic purposes. To reduce the bill, small business rate relief (SBRR) is available in the form of a discount.
To qualify for small business rate relief, you must meet a few criteria;
Firstly, find out the rateable value of your main property. You can do that on the Valuation Office Agency’s website.
Relief is calculated on a sliding scale for properties with rateable values between £15,000 and £12,001. If your sole business property is valued at £12,000 or less you will receive 100% relief, if your property is valued at £13,500 your relief will be 50%, and if your property is valued at £15,000 or more your relief will be 0%.
If you have more than one property, business rates relief will still be applied to the main property as long as you meet the eligibility criteria above.
Contact your local council to apply for relief. You can do so on the gov.uk website here.
The content in this post is for informational purposes only and is not intended to replace legal or specialist advice. Before making any decisions we recommend you seek professional advice.