Increase in level of Small Business Rate Relief

In the March 2010 budget the government announced some important changes to the Small Business Rate Relief (SBRR) scheme, with the aim of increasing the support available to small businesses that pay business rates.

The changes could benefit many Sandwell organisations, as they include a temporary increase in the level of rate relief available to eligible small businesses.

The changes mean that eligible ratepayers will pay no rates on properties with rateable values up to £6,000, and tapered relief of between 100 per cent and zero per cent for properties with rateable values between £6,001 and £12,000.

The new levels of relief will be available for 12 months from 1 October 2010 to 30 September 2011, so it’s worth finding out now if your business is eligible. Contact your local authority to see if you are entitled to support.

If you think that you meet the criteria but have not yet submitted a claim for small business rate relief, you can download an application form from the Sandwell Metropolitan Borough Council’s website. In the mean time you should continue to pay your existing business rates bill.

If you already claim rates relief you don’t need to do anything. If you are affected by the changes your local authority will automatically calculate your revised payment schedules and send out a revised business rates bill later this year.

The government has also confirmed that it will meet the costs of the increased levels of relief, so those businesses that do not fall within the eligibility criteria of the scheme will see no change in their bills. The aim of the changes to the SBRR scheme is to provide help with the fixed costs of starting and running a small business as the economy starts growing again.

The changes effectively mean that businesses who are entitled to a 50 per cent reduction in their rates bill currently will be entitled to a 100 per cent reduction between 1 October 2010 and 30 September 2011, so it’s well worth finding out if your business is eligible!

For further information visit http://www.laws.sandwell.gov.uk/ccm/navigation/business/business-finance/business-rates/.

[Image supplied by: www.freedigitalphotos.net]