Business Rates (also known as National Non-Domestic Rates) are a tax on business properties. The tax is set by the government and business rates collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services. Your local council will send you a business rates bill in February or March each year.
Non-domestic properties include:
holiday rental homes or guest houses
You’ll probably have to pay business rates if you use a building or part of a building for non-domestic purposes.
farm buildings and land (excluding buildings used as offices or for other business activities)
places of public religious worship, eg registered buildings and church halls (except in Scotland – you apply for relief for these buildings instead of being exempt)
buildings used for training or welfare of disabled people (except in Scotland – you apply for relief for these buildings instead of being exempt)
What is changing
Our Managing Director Nicky Goringe Larkin was interviewed on BBC Radio Oxfordshire representing the Federation of Small Businesses (FSB) on the topic. Below is the radio piece:
The Small Business Rate Relief (SBRR) is increasing from 50% to 100% and the thresholds are increasing to benefit a larger number of businesses. Businesses with a property with a rateable value of £12,000 and below will receive 100% relief.
Businesses with a property with a rateable value between £12,000 and £15,000 will receive tapered relief. 600,000 small businesses, occupiers of a third of all properties, will pay no business rates at all – a saving worth up to £5,900 in 2017-18. An additional 50,000 will benefit from tapered relief.
Business Rates Facts
Rateable value for 100% increasing to £12,000
Taper relief for rateable value from £12,000 to £15,000
To be introduced from April 2017
Who qualifies for Small Business Rate Relief
Some properties are eligible for discounts from the local council on their business rates. This is called ‘business rates relief’. You have to apply for some types of relief:
small business rate relief
rural rate relief
charitable rate relief
enterprise zone relief
Exempted buildings and empty buildings relief is automatically applied by your local council.
Some local councils give extra discounts. For example, you may be able to get hardship relief or transitional rate relief if your business meets certain criteria. Contact your local council if you’re not getting a relief you think you’re entitled to.
Small Business Relief
You only use one property
Your property’s rateable value is less than £12,000
If you have more than one property you can get SBRR if the rateable value of each of your other properties is less than £2,600.
You still have SBRR for one year when you get a second property.
Nicky Goringe Larkin is a Chartered Management Accountant who founded Goringe Accountants Ltd. - British Accountancy Awards 2013 Runners Up and awarded 'Highly Commended' accolade.Nicky is also Chair of the regional Federation of Small Businesses (FSB) as she is passionate about ensuring that Small Business issues are heard at the local and national level.