Understanding Small Business Rates Relief: A Beginner’s Guide
If you are an aspiring entrepreneur or a small business owner, rates relief can significantly reduce your operational cost. This article provides a beginner’s guide to understanding small business rates relief.
What is Small Business Rates Relief?
Small Business Rates Relief (SBRR) is a UK government scheme designed to provide financial support to small businesses. The scheme offers a discount on business rates to eligible small businesses, which can significantly reduce their operational cost. The SBRR scheme is applicable to businesses operating in England and Wales.
Who is Eligible for Small Business Rates Relief?
To qualify for the SBRR scheme, your business must:
– Have only one business property (or a small number of linked properties)
– Have a rateable value of less than £15,000 (or less than £51,000 in London)
– Not occupy properties with a rateable value of more than £2,899
If your business meets the above criteria, you could be eligible for a discount that can reduce your business rates by up to 100%.
How Much Can You Save with Small Business Rates Relief?
The amount of rates relief offered to small businesses depends on the rateable value of their business property. If your business property has a rateable value of up to £12,000, you could be eligible for 100% relief. This means that you will not be required to pay any business rates. If your rateable value is between £12,001 and £15,000, you will be entitled to a tapered relief. This means that the rate of relief you receive will decrease as the rateable value of your business property increases.
How Can You Apply for Small Business Rates Relief?
You can apply for Small Business Rates Relief through your local council. The process involves filling out an application form and providing evidence to support your eligibility. Evidence could include financial statements, proof of ownership or occupancy, and proof of rateable value.
Conclusion
Small Business Rates Relief can significantly reduce your operational costs as a small business owner. If you meet the eligibility criteria, you could be entitled to a discount of up to 100% on your business rates. To apply for SBRR, contact your local council and submit the necessary documentation. Take advantage of the SBRR scheme today and reduce your operational cost.
