What is small business rate relief?
If you’re running a small business and want to decrease your business rates, you might be eligible for small business rate relief. Find out what you need to know in this guide.
What is small business rate relief?
Small business rate relief offers either a discount or the opportunity to not pay business rates on a property with a low rateable value. This is a helpful scheme for small businesses to help them cut costs.
What are business rates?
Business rates are paid on non-domestic property. They’re calculated based on your property’s rateable value.
Rateable value is its open market rental value on 1 April 2015, which is based on an estimate by the Valuation Office Agency (VOA). This is then multiplied by the correct ‘multiplier’ which is set by the government.
Don’t worry, you don’t have to work this out yourself! The council will send you a bill for your business rates.
Read more about business rates in our guide
Do I qualify for small business rate relief?
You qualify for small business rate relief if:
- Your property’s rateable value is lower than £15,000
- Your business only uses one property. But, you might be able to get relief if you use more than one property
To apply for small business rate relief you can contact your local council.
If you want to check your rateable value to see if you might be eligible for small business rate relief, you can do this on the gov.uk website.
What if I don’t qualify for small business rate relief?
If your property has a rateable value under £51,000 and is in England, your business rates are calculated using the small business multiplier, whether you get small business relief or not. The small business multiplier is lower than the standard one!
How much relief do I get?
How much small business rate relief you receive depends on the rateable value of your property.
| Property’s rateable value | Small business rates relief |
|---|---|
| £12,000 or less | You do not pay business rates |
| £12,001 to £15,000 | Rate of relief decreases gradually from 100% to 0% |
Can I get small business rate relief on 2 properties?
After you get your second property you will still receive existing relief on your main property for 12 months.
You can still receive relief for your main property after the 12 month period if you fit both of the following:
- None of your other properties have a rateable value above £2,899
- Total rateable value of all your properties is less than £20,000 (£28,000 in London)
Manage your finances with Bokio
Choosing the right accounting software can help make managing your finances simple.
Bokio’s bookkeeping and invoicing software has everything you need to manage your business finances in one place. We have everything you need to help you prepare for your Self Assessment tax return, submit your Making Tax Digital VAT Return and keep the right financial records. If you need an extra hand, we can help you find an accountant to work with.
Accounting is kept simple with Bokio, so you have more time to spend running your business.
