Good News For Small Businesses
Proposed Changes To Business Rate Initiatives
For the first time ever the Government has intervened to cap the increase in business rates at 2%. Small business rate relief which has been in effect since October 2010 is to be extended until March 2015 which will help businesses with a rateable value below £18,000 (£25,500 in city of London).
How to apply for the relief?
- If your RV is between £12,000 & £18,000 (£12,000 & £25,500 in city of London) – The discount will automatically be applied on the rates bill. A lower multiplier known as the Uniform Business Rate (UBR) will bee applied so no action is required.
- If your RV is below £12,000 – Not only will you be entitled to the UBR but you will be able to claim for Small Business Rates Relief. The rate of relief will gradually decrease from 100% to 0% for properties with a rateable value between £6,001 and £12,000. In order to apply contact your local authority as a form will need to be completed.
- If your RV is below £6000 – You will not have to pay any business rates so no action is required. (You are only entitled to this if you are in occupation of only one premises)
It has also been announced that from April 2014 ratepayers will be able to pay in 12 monthly instalments rather then 10 monthly instalments, which in affect reduce the monthly payments.
Additional reductions on premises with a rateable value less than £50,000
If your property has a rateable value of less than £50,000 you could benefit from an additional £1,000 discount. Below shows the proposed savings based on differing rateable values. The examples show the effects of changes for qualifying ‘retail’ properties below £50,000 reflecting a 2% cap and £1,000 rates discount.
RV | 2013/2014 | 2014/2015 | REDUCTION | PERCENTAGE |
£15,000 | £6,930 | £6,065 | £865 | 12.5% |
£30,000 | £14,130 | £13,460 | £670 | 4.7% |
£45,000 | £21,195 | £20,690 | £505 | 2.4% |
Empty Units – 50% discount to support the rejuvenation of empty units
For those businesses looking to open up or expand, if a shop unit has been empty/vacant for at least 12 months, a further scheme has been introduced to try and rejuvenate the High Street by offering businesses a 50% discount on the rates payable for the first 18 months if you take on one of these premises.
If you have any queries regarding these changes please contact us using the following links;
Blog: https://hammerproperties.wordpress.com/contact-us/
Website: http://www.hammerproperties.co.uk/
Facebook: https://www.facebook.com/HammerPropertiesIlford
You can also find out more by visiting www.gov.uk/government/news/autumn-statement-2013-key-announcements
(PLEASE NOTE THAT THIS INFORMATION NEEDS TO BE FORMALLY APPROVED AND COULD BE SUBJECT TO CHANGES BY THE GOVERNMENT POST AUTUMN STATEMENT)
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