Demystifying Small Business Rates Relief: Everything You Need to Know

Demystifying Small Business Rates Relief: Everything You Need to Know

Are you a small business owner or planning to start a business? Are you aware of Small Business Rates Relief (SBRR)? If not, you may be overpaying on your business rates.

SBRR is a government-backed initiative aimed at helping small businesses save money on their business rates. This relief is aimed at businesses operating from a single property with a rateable value of less than £15,000. But what does it really mean for your business? Keep reading to find out everything you need to know about SBRR.

What is Small Business Rates Relief?

Small Business Rates Relief is a scheme developed and implemented by the UK government to help small businesses that are struggling to pay their business rates. The scheme was launched in 2005 and revised multiple times since then. The current version of the scheme has been in effect from 1 April 2017 and was extended until 2022.

Who Qualifies for Small Business Rates Relief?

Small Business Rates Relief is aimed at small businesses operating from a single property with a rateable value of less than £15,000, although the lower threshold varies between different regions in the UK.

Businesses with a rateable value below £12,000 will be eligible for 100% relief, while businesses with a rateable value between £12,001 and £15,000 will be eligible for tapered relief that reduces as the rateable value increases. Additionally, businesses occupying more than one property may still qualify for SBRR, subject to certain conditions.

How Much Can You Save with Small Business Rates Relief?

Small Business Rates Relief offers a range of savings, depending on the rateable value of your business premises. If your property has a rateable value of £12,000 or less, you’ll be eligible for 100% relief, meaning you won’t pay any business rates at all. Businesses with a rateable value between £12,001 and £15,000 will receive tapered relief up to a maximum of £2,850 per year.

How to Apply for Small Business Rates Relief?

The process of applying for Small Business Rates Relief varies between different regions in the UK. In most cases, businesses can apply for SBRR through their local council or online through the government’s website.

Conclusion

Small Business Rates Relief is a valuable scheme that can help small businesses save thousands of pounds on their business rates. If you are a small business owner or are planning to start a business, you should consider applying for SBRR. By doing so, you can take advantage of the significant savings the scheme has to offer, giving your business more financial freedom to achieve its goals.