Are you interested to know about small business rates relief in the UK?
Business rates apply to every business with physical premises.
These properties are non-domestic. These businesses do not pay Council tax, rather they pay business tax. Business rates are lower than the Council tax in the UK.
Small Business Rate Relief is a government scheme that is designed to provide relief to small businesses with low rateable values.
It is an effective business scheme that can benefit small businesses. So, if you want to learn more about the relief of small business rates, this article is for you.
Here, in this article, I am going to put together what small business rates relief, what you will get if you use more than one property.
How to apply for small business rates relief in the UK, criteria for getting small business rates relief, and what to do if you haven’t qualified for small business Rates Relief.
What is Small Business Rates Relief?
Small Business Rate Relief is a scheme designed to help small businesses with physical premises.
This scheme is designed to stay solvent for the smaller businesses granting them relief on the rates they pay. In England, SBRR works as follows:
Depending upon the rateable value of the property, small businesses can claim relief of up to 100% on their business rates.
Small businesses can claim relief on business rates if the rateable value of the property falls between 12,001 Pounds to 15,000 Pounds.
Rates Relief is proportionate to the rateable value within this 3,000-pound margin.
So, for example, with a rateable value of 13,500 Pounds will gain 50% relief. Because 13,500 Pounds is the midpoint between 12,001 and 15,000 Pounds.
Small businesses whose properties have a rateable value of less than 12,000 Pounds or the same, get 100% relief on their business rates.
If the business expands and opens a second premises, that business can still claim for Rates Relief on its original property for 12 months.
Businesses can continue to gain Rates of Relief on their actual property after 12 months if:
- None of the business’s other properties have a rateable value exceeding 2,899 Pounds.
- The total rateable value for all the properties of the business is less than 28,000 Pounds in London. Or the value is 20,000 Pounds outside London.
What Will You Get If You Use More Than One Property?
When you get a second property, you can continuously get the existing relief on your main property for 12 months.
You can still get small business rate relief on your main property after 12 months if both the following apply:
- None of the business’s other properties have a rateable value exceeding 2,899 Pounds
- The total rateable value of your properties is less than 20,000 Pounds. It is 28,000 Pounds in London.
How to Apply for Small Business Rate Relief in The UK?
You can apply for small business rate relief using the online form. You can contact your local Council.
When you complete your application form on Page 2 there will be “What is your business type?”
- If your trade is yours and there is no business partner, family member, or friends, etc. You can select the Sole Trader Option.
- If you run your business jointly with another person such as your business partner, family member, or friend; you can select the Unregister Partnership option. In this case, you need to provide every detail of the partners of your business.
Criteria for Getting Small Business Rates Relief
You can get small business rates relief if:
- You use only one property in England.
- Your Property’s rateable value is less than 15,000 Pounds, or
- You have one main property in England with other additional properties with RV’s of less than 2,899 Pounds. The total value of all the properties must not exceed 27,999 Pounds in London and 19,999 pounds outside London.
What to Do If You Don’t Qualify for Small business rates Relief?
If your business does not qualify for small business rates relief, there is an additional option for businesses in England.
If your business premises have a rateable value of less than 51,000 Pounds, your business rates will be calculated via the small business multiplier of 49.9 pence.
This rate is lower than the standard multiplier of 51.2 per cent.
FAQ
What a Business rates in the UK?
Ans: Business rates are charged on most commercial properties and non-domestic properties such as shops, pubs, warehouses, offices, factories, guest houses, and holiday rental homes. The business rates are supposed to rise by April 2024. So, this means, the standard multiplier will remain at 51.2p and the small business multiplier will remain at 49.9p.
What is small business rates relief in England?
Ans: There are two main ways to reduce the small business rates aiming to help the small business owners. One way is by using a lower multiplier to calculate the bill and applying for a discount upon the rateable value. This reduction to the bill is called small business rates relief.
Conclusion
So, you can apply for a small business rates relief if you use a property for your business, and the property’s rateable value is 15,000 Pounds or less.
Here, in this article, I have put together every detail of small business rates relief, you can go through this guide. I hope this guide will cover you all around!
