Every saving helps when you’re small
A UK government initiative called Small Business Rates Relief (SBRR) aims to reduce the cost of business rates for small firms. Based on the value of the property they occupy, most businesses in England and Wales are required to pay business rates. Nevertheless, if your company satisfies certain requirements, you may qualify for Small Business Rates Relief, which can remove the liability in its’ entirety or substantially lower the amount you must pay. In Scotland, the government offers the Small Business Bonus Scheme for qualifying ratepayers. We’ll examine in more detail what SBRR is, who qualifies, and the application process in this article.
What is Small Business Rates Relief?
Small Business Rates Relief applies a reduction in the amount of business rates that a small business must pay potentially down to zero. The rateable value of your commercial property determines how much relief you may be entitled to receive. The Valuation Office Agency in England and Wales determine the Rateable Value, which is a figure arrived at that reflects the property’s rental value at a fixed valuation date..
The SBRR programme is intended to assist small firms.. If your company qualifies for SBRR, you’ll receive a discount on your business rates, which can be up to 100%.
Who is eligible for Small Business Rates Relief?
Generally, your company must satisfy the following requirements to be eligible for SBRR.
England
- Less than £15,000 Rateable Value of your commercial property.
- Your company only makes use of one property.
- There is no alternative sort of rate relief available to you.
- If you own more than one property, the total rateable value of all your properties must be less than £20,000 or if in London less than £28,000.
Wales
- Less than £12,000 Rateable Value of your commercial property.
- Limit of two properties per business in each local authority.
If your company satisfies these requirements, you might qualify for SBRR.
How to apply for Small Business Rates Relief?
You must get in touch with your local council if you want to apply for small business rates relief. If you’re a business in England or Wales, you can locate the contact information for your local council on the GOV.UK website.
England
Qualifying businesses with a Rateable Value of £12,000 or less should be entitled to 100% relief, i.e. they should not pay business rates.
If your property has a rateable value of £12,001 to £15,000, the rate of relief will be tapered from 100% to 0%.
Wales
The limit for a qualifying business is lower. and you should not pay Qualifying business with a rateable value of £6,000 or less, if should be entitled to a 100% relief.
If your property has a rateable value of £6,001 to £12,000, the relief will be tapered from 100% to 0%.
Following the application assessment, your local council will inform you of your eligibility for SBRR. If you qualify, the discount will be applied to your business rates bill.
Why is Small Business Rates Relief important?
Because it can enable small firms to save money on their business rates, Small Business Rates Relief is crucial. Small firms may incur large costs from business rates, especially if they are just getting started. SBBR can help small businesses free up money to invest in expansion and development by paying less in business rates.
