|||||||||||||||||||||||X||

Facts and questions

What is the government doing?

It is increasing the support available to small businesses that pay business rates. It is doing this by increasing the level of small business rate relief available to eligible businesses for a temporary period. From 1 October 2010 to 30 September 2011, eligible businesses with a rateable value of up to £6 000 will be entitled to 100% relief on their bill. If your rateable value is between £6 001 and £12 000, you will be entitled to relief on a sliding scale between 100% and 0%.

Who is eligible?

Anyone who is entitled to small business rate relief and has a rateable value of £12000 or less will be eligible for the increased level of discount off their rates bill.

When does this happen?

The revised relief will apply between 1 October 2010 and 30 September 2011.

Is it worth it?

Yes! The government's changes will mean that those who, for example, are entitled to a 50% reduction in their rates bill will be entitled to a 100% reduction between

1 October 2010 and 30 September 2011.

Do I need to meet any criteria?

Small business rates relief is available to all businesses whose rateable value is less than £18 000. To qualify for the relief, businesses must apply to their local authority and confirm that:

the sole or main hereditament they occupy must have a rateable value of less than £18 000 (£25 500 in Greater London) and
if they occupy any additional hereditaments, each of the additional hereditaments must have a rateable value of less than £2,600, and the total rateable value of all of their hereditaments must be less than £18 000 (£25 500 in Greater London).

Where the rateable value of the hereditament is £12 000 or less, the business is eligible to claim a discount on the rates bill, as well as having their bill calculated on the basis of the small business rate multiplier.

For businesses with a rateable value of between £12 001 and £18 000 (or £25 500 in London), there is no discount, but the business will continue to be entitled to have their rates bill calculated using the small business rate multiplier.

Do I need to do anything?

If you already claim the relief, you do not need to do anything more. Your local authority will calculate your revised payment schedules and write to you later this year.

If, however, you do not already claim the relief (see the criteria listed above), but think you may be entitled to the relief, you should contact your local authority who can advise you on what you need to do.

Can I change my bill payments now?

You must continue to pay your current bills, on the existing payment schedule from your local authority. Current collection and enforcement procedures will continue to apply to ratepayers who miss a scheduled instalment. Your local authority will write later this year to advise you of any reductions that might be necessary to your 2010/11 bill. Any changes to your liability that are necessary for 2011/12 will be set out in your 2011/12 bill when that is prepared in March 2011.

When will I find out what my revised bill will be?

The changes need to be agreed by parliament. Subject to parliamentary approval, the government expects that local authorities will be able to issue revised bills for 2010/11 before 1 October 2010.

What if I have already paid too much by 1 October?

If, as a result of the payments you have already paid by 1 October 2010, you have paid an amount greater than any revised bill you are due from the new arrangements, then your local authority will arrange any necessary refund to be made to you.

My rateable value is over £12 000, do I get any help?

If your rateable value is over £12 000, you are not entitled to a discount within small business rate relief. However, if your rateable value is below £18 000 (or £25 500 in London), and you are eligible for small business rate relief, you will be paying your business rates using the small business rate relief multiplier which is set at a lower level than the general business rate. In these circumstances, there will be no change to your bill.

Why is the government doing this?

The government is making this change to the small business rate relief scheme to provide help with the fixed costs of starting and running a small business as the economy starts growing.

What happens if there is a new government?

Introduction of the measure will be subject to passage of the necessary legislation by Parliament, following an election.

I have deferred some of my liability for business rates into the next year. Does this scheme mean I no longer have to pay those rates?

The chancellor's announcement relates solely to the business rate liability between 1 October 2010 and 30 September 2011. If you are paying any other rates bill from earlier periods, for example through the deferral of rates liabilities scheme, you should continue to make those payments to your billing authority.

Deferred payment of rate liabilities

Ratepayers in 2009/10 were able to defer payment of 3% of their 2009/10 rates bill and, where applicable, 60% of the increase in that bill due to the ending of the 2005 rating list transitional relief scheme. The right to apply for deferral ended on 31st March 2010. For those ratepayers who applied for this scheme, the deferred amount to be collected in 2010/11 and 2011/12 will be included in the bills for each of those years respectively.

Additional information provided by the government is available on the communities and local government website

Charity and community amateur sports club (CASC) relief

Charities and registered CASCs are entitled to 80% relief where the property is occupied by the charity or the CASC, and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purpose of the CASC (or of that and other CASCs). The local authority has discretion to give further relief on the remaining bill.

Non-profit making organisation relief

The local authority has discretion to give relief to non-profit making organisations based in the local areas.

Hardship relief

The local authority has discretion to give relief in special circumstances for local businesses struggling to make ends meet, please contact the team to find out more.

Relief for businesses in rural areas

Certain types of business in rural areas, with a population below 3 000, may qualify for rate relief of 50%. Businesses that qualify for this relief are the sole general store or the sole post office in the village, provided it has a rateable value of up to £8 500; any food shop with a rateable value of up to £8 500; and the sole pub and the sole petrol station in the village, provided it has a rateable value of up to £12 500. Local councils have discretion to give further relief on the remaining bill for such property.

The local council may decide to give up to 100% relief to any other business in such a rural village, with a rateable value up to £16 500, if it is satisfied that the business is of benefit to the community and having regard to the interest of council tax payers.

Rating advisors

Ratepayers do not have to be represented in discussions about their rateable value or their rate bills. Appeals against rateable values can be made free of charge.
However, ratepayers who do not wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS) and the Institute of Revenues, Rating and Valuation (IRRV) are qualified and regulated by rules of professional conduct designed to protect the public from misconduct.

Before employing a rating adviser, and particularly before employing one who is not a member of one of these bodies, you should satisfy yourself that he or she has the necessary knowledge and expertise, as well as appropriate indemnity insurance.

You should also be wary of false or misleading claims. We are aware of agents who do not explain, for example, that a reduction on rateable value may not necessarily lead to a reduction in the amount of rates you will have to pay. This is because there are overriding limits on how much rates bills can change from year to year under the transitional relief scheme.

How do I pay my business rates?

There are various ways in which you can pay your business rates, see the pay it section of this website for more information.