smallbusiness.co.uk: Helping your business think big

Small firms are being urged to apply to their local councils for business rates relief when they receive their demands.

ACCA (the Association of Chartered Certified Accountants) is reminding eligible businesses that they must apply to receive business rates relief; it will not be awarded automatically.

“Occupiers trading from a single property with a rateable value of up to Ł9,999 are entitled to claim small business rates relief, which could have the effect of reducing a rates bill by up to 50%,” advises Glenn Collins, Head of Business Advisory Services at ACCA. “However, rates relief has to be applied for; it is not automatically deducted from any rates bill.”

A business with a rateable value of less than Ł5,000 will be eligible for the relief, which will provide a 50% reduction in their rates bill. The relief will then decrease on a sliding scale of 1% for every Ł100 of rateable value over Ł5,000, to a maximum of Ł9,999.

The tax relief will also extend to small businesses with additional properties, where individual rateable values do not exceed Ł2,200 and the combined rateable value of all the properties is under Ł15,000 (Ł21,500 in London).

A range of additional reliefs are available to small firms at the discretion of their local authority. These include transitional relief, discretionary relief, former agricultural premises relief, small, unoccupied premises relief, and qualifying rural relief.

“Businesses can also appeal against their new rateable value, but should be wary of any unsolicited approaches from companies offering – for an upfront fee – to save them money,” warns Collins. “Although tempting, such offers should be treated with great caution, particularly as there is now only one opportunity to appeal. It is best to seek independent advice from a qualified rating surveyor.”

For more information, visit www.accaglobal.com

(14/4/05)

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