Small Business Rate Relief 2015/2016 – Doubled rate to continue
The government have announced that the small business rate relief can continue to be doubled right up until 31st March 2016. This means that the doubling up of the relief percentage that was written in the Non Domestic Rates Multipliers for 2014/2015 will continue for the 2015/2016 financial year.
When are Rate Relief Available for Small Businesses?
Small business relief is available to ratepayers who occupy only one property with a rateable value of £12,000 or less; or
Who occupy one main property with a rateable value of £12,000 or less and any additional business properties have a maximum additional rateable value of £2,600. The total rateable value for all properties cannot then exceed £18,000.
What Rate Relief are Available for Small Businesses?
A 50% deduction in business rates is available to the main property of businesses which meet the above criteria and whose business rates are £6,000 are less. This means that as these relief are doubled, no rates are paid by small businesses whose main property has a rateable value of £6,000 or less.
If the rateable value is between £6,001 and £12,000 the relief given is in accordance with a set formula, where less relief is given the higher the rateable value. Again this is doubled.
If you are a small business (have a rateable value below £18,000 or £25,500 in Greater London and the property is not a club or empty) but you don’t qualify for rate relief, then rates are calculated using a multiplier.
The current multiplier rates can be found here:-
https://www.gov.uk/correct-your-business-rates.
Are Rate Relief are Available to Retail Businesses?
Shops, pubs and restaurants now get £1,500 off their rates, as opposed to £1,000, providing that their rateable value is below £50,000.
Small Business Rate Relief 2015/2016 – Summary
These announcements are a positive step from the government, proving that action is being taken to assist us small businesses to set up (and continue) in business without excessive rates. Let’s hope this encourages more people to set up new businesses as this would almost certainly improve our economy generally.
Categorised in: Insolvency Reviews & Advice, Latest Insolvency News
