Are You Eligible for Rate Relief

Did you know that, if your business occupies a single location with a rateable value below £12,000, you could make claim under the Government’s Small Business Rate Relief Scheme?

Designed as a tax incentive for the small business, the scheme has been extended for a year from its original cessation date in September this year. For the year starting on 1 October 2010, new, higher levels of relief start at 100% for premises with a rateable value of up to £6,000, tapering to 0% at £12,000, as announced in the Chancellor’s budget in March.

When you have More Than One Location

Businesses who have additional premises in other locations may also qualify if the rateable value of each of the other properties is less than £2,600, and if you add it all together, the rateable value of all your locations does not exceed £18.000 – or £25,000 if you operate from the Greater London area.

Don’t Miss Out

But many small business owners have been quite unaware that they are eligible for this tax break and have not been making claims. They have been missing out on the previous levels of rate relief.

If you believe you qualify and have not claimed before, you should contact your local authority without delay to confirm your eligibility and ask how to make your claim. Meanwhile, make sure you don’t default on your payments and pay your rates as normal. Talk to your outsourced bookkeepers if you are not sure whether you will be eligible.

If you already receive the relief, the new rules should be automatically applied and you can include the tax relief in your cash flow projections. It’s good to have some positive news about your finances for a change. 

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