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The UK businesses are obliged to pay business rates on their non-domestic property such as shops, offices, pubs, warehouses, etc. How much you have to pay depends on the location of the premises as well as the rateable value and the business rate multiplier. But are you aware of various reliefs and exceptions, which can ease your tax burden or help you avoid it altogether? Find out more about it in our new blog post.
The taxes you have to pay depend on your property‘s rateable value and the business rates multiplier, also known as 'poundage'. The business rates multiplier is set by the Government while the rateable value, which is based on its probable annual market rent, is the set by the Valuation Office Agency.
The business rates are calculated by multiplying the rateable value of commercial premises by the business rates multiplier.
Rateable values are reviewed every five years. The new rateable values that came into effect 1st April 2017 have faced a backlash as some businesses saw the increase of up to 300% in business rates.
Business rates are handled differently according to a region. This article concentrates on the reliefs available in England.
Business rates have to be paid:
In England, if your business premises have a rateable value below £51,000, you are considered to be a small business and you are eligible for a number of exceptions and reliefs.
Your business is not eligible for small business relief if you have more than one business property. Exceptions are made to businesses that have more than one business but their rateable values are below £2,900 and the total rateable value of all the properties is below £20,000 (£28,000 in London).
In England you can also apply for:
Also, these buildings are exempt from business rates:
Don‘t take business rates for granted. You can think of other ways to ease your tax burden. For example, if you have an empty commercial building, you could rent it to a tenant for a short period of time and when the tenant moves out – claim empty property relief.
If you are having financial problems, you can contact the local council and ask to change the amounts and dates of your payments.
Also, don‘t forget that you can make an appeal:
If you need more information or help applying for the reliefs, do not hesitate to contact Right Accounts. We are ready to help!
You can check rateable value of your property by the postcode here.
You can find the correct ‘multiplier’ for the size of your business and location here.
You can estimate your business rates here.
You can read more about the appeals here.
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