A property utilized for commercial purposes may be subject to a tax known as business rates. Business rates are a kind of tax intended to assist in funding services your local government provides. Buildings such as offices, stores, bars, and warehouses are subject to small business rates, which the government levies.
Business rates apply to the vast majority of non-residential properties. They might also be assessed when just a portion of a building is utilized for commercial or industrial reasons.
Therefore, whether you operate your company out of the commercial property (or in certain situations, if you work from home), you must have a solid understanding of the business rate, Small Business Rate Relief scheme, eligibility criteria, and how you can apply for small business rate relief and many more.
The Small Business Rate Relief (SBRR) scheme
The Small Company Rate Relief (SBRR) scheme is a project launched by the government of Northern Ireland. Its purpose is to encourage the expansion and continued viability of small companies located in Northern Ireland by offering rate relief to a subset of small business owners.
The SBRR offers varying degrees of rate relief for commercial properties, with the amount of relief based on the property’s Net Annual Value (NAV). Firms eligible to receive the rate reduction will have it applied automatically to their yearly bill during the assistance program’s duration. Applying for SBRR is not required in any way.
The SBRR program was implemented in April of 2010, and its original term was set to last five years. However, its duration has since been extended yearly based on a review. The SBRR has been developed for an additional year, covering the rating year of 2022-2023.
Who is eligible for small business rate relief?
Only ratepayers who are legally obligated to pay non-domestic rates on any of the following are eligible for small business rate relief:
- One inhabited property in England only, or one primary occupied property only if other occupied properties in England do not separately have a rateable value of more than $2,899.
- The total value of all the combined properties does not exceed £19,999 in rateable terms.
- A smaller business rates multiplier will be applied automatically to all inhabited non-domestic properties with a rateable value between £15,001 and £50,999.
If you reside in more than one property, the rateable values of the additional properties you occupy will determine whether or not you are eligible for small business rate relief from paying property taxes.
Additional regulations came into effect on the 14th of February, 2014. When a second property not ignored in the assessment is inhabited, the relief that the ratepayer would normally lose immediately may be kept by the ratepayer for up to a year under certain circumstances.
How to apply for SBRR?
The SBRR does not have a formal application process in place. If you are eligible for small business rate relief, LPS will automatically reduce the amount of relief applied to your business rate payment. This will guarantee that if you are qualified, you will benefit from the rate reduction as soon as it is available.
You can get in touch with LPS by using any one of the following methods:
- Email applicationbased.raterelief@finance-ni.gov.uk
- Tel 0300 200 7801 (billed at a local rate)
- Tel +44 28 9049 5794 while dialing from outside the UK
- Text relay 18001 0300 200 7801
Important changes to SBRR-
Multiple properties
Since April 1, 2012, the SBRR scheme has been amended so that those ratepayers who occupy several premises (more than three) of any size or are part of a chain are ineligible for this rate relief. This change came into effect. A network of betting shops is a good illustration of this concept.
Because of problems with the quality of the data, there may be instances in which LPS does not have the necessary information to apply for the relief automatically, or they may have done so in error when they should not have done so.
You are encouraged to contact LPS if you feel the relief should have been granted or if you believe it was given to you by mistake. You can get in touch with your local LPS office by using any one of the following methods:
- Search for an email address for your local LPS regional office.
- Tel 0300 200 7801 (billed at a local rate)
- Tel +44 28 9049 5794 while dialing from outside the UK
- Text relay 18001 0300 200 7801
Ending of ‘double relief.’
The Northern Ireland Executive has decided to stop providing “double relief” to contribute funds toward expanding the SBRR to the maximum number of business ratepayers. Double relief refers to the situation in which business ratepayers are given rate relief not once but twice. To be more specific, SBRR, together with one of the following:
- Sport and Recreation Rate Relief
- Industrial Derating
FAQ-
What is the rateable value of my business?
The rateable value of your business is shown on the top of your bill, where it will tell you what. This is a rough estimate of the annual rent that the property would have been able to get on the open market at a certain time in the past.
How is a rateable value calculated?
The amount of your bill for domestic rates is determined by calculating the domestic rate for your council area by the rateable capital worth of your property. The regional and district rates contribute to what is known as the domestic rate for your region. The various local governments determine the district rate.
What are businesses exempt from business rates?
There is a possibility that you won’t have to pay business rates for the following:
- Lands and buildings used for agriculture, including fish hatcheries
- Structures that are used for the education or well-being of individuals with disabilities
- Facilities that have been officially registered for use as places of public religious worship or church halls
Who qualifies for rate relief?
This is a program designed to assist small companies in receiving a discount on their cost of up to one hundred percent.
The government has declared that, from April 1, 2017, there will be adjustments to the small company rate reduction. The following are the new criteria:
- One hundred percent relief is available to eligible companies that own properties with a rateable value of fewer than twelve thousand pounds.
- Businesses that meet the requirements and have a property with a rateable value between 12,001 and 15,000 pounds are eligible for a sliding scale relief program.
How do I find the rateable value of my property UK?
Your property’s open market rental value as of April 1, 2008, was used to calculate its rateable value, which is the same thing. Utilizing the website of the Valuation Office Agency, which opens in a separate window, will allow you to ascertain your rateable value.
You can see your value in its entirety, evaluate it about that of other properties, and make a revision request if you believe that any of the information is inaccurate.
Conclusion
There are reliefs available for certain properties; the small business rate relief is the most helpful for smaller businesses. You are eligible for this relief if the rateable value of your property is less than £15,000 and, in general, if your company only utilizes one property.
I hope that you will find this information regarding “An overview on small business rate relief UK” helpful since we have just finished a lengthy discussion on small business rate relief. You can post your inquiry in the comment box if you have any queries.
