Did you know, business rate relief for small businesses is changing from 1 April?
You can get small business rate relief if your property’s rateable value is less than £15,000 (from April 2017) and your business only uses one property.
From 1 April 2017, you won’t pay business rates on a property with a rateable value of £12,000 or less (replacing the previous threshold of £6,000 or less).
For properties with a rateable value of between £12,001 – £14,999 , the rate of relief will go down gradually from 100% to 0%.
If your rateable value is £13,500, you’ll get 50% off your bill. If your rateable value is £14,250, you’ll get approximately 25% off.
If your property has a rateable value of under £51,000, you’re still considered to be a small business. But if you don’t qualify for small business rate relief above, i.e. your property has a rateable value of more than £15,000, your bill will be calculated using the small business multiplier (0.466). This is lower than the standard one paid by small businesses whose properties have a value of £51,000 or more (will pay a multiplier of 0.479).
Additionally, charities and community amateur sports clubs can apply for a charitable rate relief of 80% if a property is used for charitable purposes, but in certain cases can be considered for the remaining 20%, which would entitle them to 100% rate relief.
How your rates are calculated:
Business rates are worked out based on a property’s rateable value. This is its open market rental value on 1 April 2008, based on an estimate by the Valuation Office Agency. If you want to check the rateable value information for any specific property, visit http://www.voa.gov.uk
If you think you might be eligible for rate relief, visit https://www.nelincs.gov.uk/business-and-investment/business-rates/claim-for-small-business-relief/