The Government has passed regulations resulting in a temporary increase in the amount of Small Business Rate relief available to eligible business ratepayers.
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 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 £12,000 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.
Bills will be issued in October 2010 for the impact of changes in the 2010/11 financial year. 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.
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 if your rateable value is less than £12,000. 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 £12,000 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 £12,000.
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.
Where the rateable value is between £12,001 and £18,000 there is no discount, but the ratepayer 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. South Holland District Council will calculate your revised liability and issue you an adjusted bill during October 2010.
If, however, you do not already claim the relief (see the criteria listed above), but think you may be entitled to the relief, then you should contact South Holland District Council now (01775 764608).
Can I change my bill payments now?
Until any adjusted bill is issued you must continue to pay the instalments shown on your latest bill. Current collection and enforcement procedures will continue to apply to ratepayers who miss a scheduled instalment. 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?
Adjusted bills should be issued by mid October and will adjust instalments due on 1st November onwards.
What if I have already paid too much by 1 November?
If, as a result of the payments you have already paid by 1 November 2010, you have paid an amount greater than any revised bill you are due from the new arrangements, we will arrange any necessary refund to be made to you where the credit is greater than £5.00. If you currently pay by direct debit, we will automatically refund the credit direct to your bank account. For everyone else we will enclose a form with your new bill asking for your bank details so that we can do the same.
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 between £12,000 and £18,000 you will be paying your business rates using the Small Business Rate multiplier which is set at a lower level than the general business rate. In these circumstances, there will be no change to your bill.
I have deferred some of my liability for business rates for 2009/10 into the next year. Does this scheme mean I no longer have to pay those rates?
This scheme solely relates 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 as per the instalments shown on your last bill.
