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Running a small business is exciting, but managing your finances? Not so much!
One way to ease the burden is through small business rate relief, which can significantly reduce your business rates.
In this guide, we’ll help you get to grips with small business rate relief. Find out if you’re eligible to take advantage of it and, if you are, how you can easily apply online.
Business rates are taxes that you have to pay on top of council tax for the premises that you work from. They are charged similarly to council tax in advance of the upcoming tax year.
Some examples of non-domestic premises include:
But, there is an exemption list for some premises.
If you’re eligible, some small businesses get tax relief!
Small business rate relief is a government initiative that aims to help small companies. The relief reduces the business rates for those that own a business property – like independent retailers.
If you’re eligible for this relief, your business could benefit from substantial savings. And that means more money to invest in your business!
The catch?
Sadly, it’s not available to everyone…
Sometimes, it’s easier to let a professional take the wheel. Our accredited accountants are here for you. They’ll sort and file your year-end accounts and tax return to Companies House and HMRC.
And the best part? You don’t have to lift a finger! Learn more about the service.
Let’s determine whether you’re eligible or not.
This relief is exclusively available to businesses that own and use their property solely for business purposes. So, if you work from home, you unfortunately won’t be eligible.
There are a few other criteria you’ll need to meet as well.
To qualify, you’ll need to meet the government’s rateable value limits. This value is based on the rent that a property could achieve if it were available or vacant to let out on the open market at a given date.
Properties with a rateable value of £12,000 or less qualify for 100% relief. This means you won’t pay any business rates. As the value goes up, the relief goes down.
Here’s how it works:
| Rateable value of a business property | Relief |
| £12,000 and below | 100% relief |
| £12,001 – £15,000 | Relief goes down gradually from 100% at £12,000 to 0% at £15,000 |
| £15,001 – £50,999 | Your bill will be calculated using the small business multiplier (see below) |
If your property’s rateable value is between £15,001 and £51,000, you can’t claim small business rate relief. But, you might benefit from the small business multiplier instead.
The next requirement is the number of business properties you own. Typically, businesses with just one property can claim. But there are some exceptions.
If you own more than one business property, they’ll need to have:
If this sounds like you, then great news! You’re likely eligible for small business rate relief.
Even if you don’t meet the above criteria, you may qualify for different types of business relief.
For example, a charity might qualify for charitable rate relief instead. If this is the case, It’s worthwhile reaching out to your local council to see which type of relief you qualify for. You can read more about the different types of relief here.
Book in a 30min, 1-1 tax advice consultation with an accredited accountant to put your business in the best position possible.
Chat via phone or video at a time that suits you!
Before starting your application, you’ll need to get the following documents and information together:
Ready to apply? Let’s walk through the application process.
First things first, you’ll need to visit your local council’s website.
Each council has its own procedure when it comes to claiming small business rate relief. So start by finding the relevant page for business rates relief. A simple Google search should help you locate this.
Next, you’ll need to look for the small business rate relief application form. Fill in the form with your business details, property information, and your business rates reference number.
Submit the form online and ensure you receive a confirmation email or receipt.
If you prefer, you can apply by post. Download the application form from your local council’s website. Or, request one by calling the council.
Once you’ve filled it out, send the form to the address provided by your local council. Don’t forget to send via recorded delivery just to be sure!
It should take just a few weeks to a couple of months to process your application. If you’re approved, your local council will let you know by email or letter.
Once approved, your business rates will be adjusted and you might receive a refund for any overpayments.
If your application is denied, you can appeal with your local council by contacting them directly.
If you’re unsure about your eligibility for small business rate relief, we can put you in touch with an accredited accountant.
They’ll get to grips with your business situation and help you understand if you’re eligible or not. If this sounds like a plan, you can get started here.
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