Business rates are a burden on any business, but when you’re a start-up or working on a smaller scale, business rates can be detrimental to your growth. Business rates are a form of tax for which most commercial properties will be liable to pay, but in uncertain times where many small businesses have suffered from the repercussions of the pandemic, business rates are an unwanted weight on top of already struggling times.
So, what is the solution to this? Some businesses may be entitled to small business rate relief that can help significantly reduce the cost. So if you’re wondering, do I qualify for small business rate relief? Let’s find out.
Requirements to qualify for small business rate relief
If your property has a rateable value of £12,000 or less, then you will not be required to pay business rates tax.
Properties with a rateable value under £15,000
If your commercial property has a rateable value of under £15,000, then you are eligible for small business rate relief.
For business properties with a rateable value between £12,001 to £15,000, the rate of relief will gradually go down from 100% to 0% starting from £12,000. For example, if your rateable value is £13,500, you qualify for a 50% reduction on your bill. If your rateable value is £14,000 then you will get 33% off your bill, with this percentage increasing the closer to £12,000 your rates are and decreasing the closer to £15,000, all depending on your rateable value.
If you own a single business property
If you only own one property for your business, then you can also qualify for small business rate relief. This is not to say that you won’t be able to if you own more, however, this is listed as a qualifier for small business rate relief by the UK government guidelines.
How to register for small business rate relief
To apply for small business rate relief you can contact your local council.
Businesses not eligible for small business rate relief
Properties with a rateable value over £15,000
Businesses that are not eligible for small business rate relief in the UK include any businesses with a commercial property that has a rateable value of over £15,000.
However, although your business may not qualify if your value is higher than £15,000, if your property in England has a rateable value below £51,000, you will not be charged the standard business rates tax and instead, your bill will be calculated using the small business multiplier, which is less than the standard one.
Multiple properties with a combined rateable value over £20,000
If you own multiple properties, you will not qualify for rate relief on your main property if your combined rateable value of all premises exceeds £20,000 or (£28,000 in the London region).
Other ways to relieve or mitigate your business rates
Property Guardianship for Empty Properties
At The LOWE Group, we specialise in mitigating business rates for empty properties through socially sustainable methods. If you are the property owner of an empty building and are looking to reduce or mitigate your business rates altogether, property guardianship not only allows you to do this but provides a young professional with an affordable solution to accommodation.
We only work with the most socially responsible people who are involved in and/or work in the local community so that you can ensure your property is being cared for whilst reducing your overall costs.
Get in touch with us today to find out more about your options.