What are Business Rates?
In a similar way that residents pay council tax, businesses and other organisations that occupy business premises may need to pay non-domestic, also known as business rates, to Councils. They help finance local services. If you are considering a new business venture you need to be mindful that you may need to pay this in addition to any commercial rent that you pay.
How much do I need to pay?
The Valuation Office Agency values your property to ascertain the rateable value. For a quick calculation of what you may need to pay please refer to Gov.uk: Estimate your business rates.
For more information on how the rateable value of your property is assessed or details on how to appeal if you believe it to be incorrect, please refer to the Valuation Office Agency, a division of HM Revenues and Customs.
Explanatory notes for you bill can be found here.
The rating list
Councils are responsible for displaying the rating list. The list is also available online on the Valuation Office Agency homepage. This list contains details of all rating assessments in the borough and is available for inspection during normal office hours.
Business rates revaluation
The Government adjusts the value of business rates usually every five years to reflect changes in the property market. A revaluation was last conducted in 2010 therefore a revaluation has taken place with effect from 1 April 2017.
Your rateable value may have increased, decreased, or stayed the same.
If you believe your rateable value is incorrect, you may contact the Valuation Office Agency for more information and provide them with details of any changes to your rent.
You can check your valuation or get details on how to appeal at the following link: https://www.gov.uk/correct-your-business-rates
For those that would otherwise see significant increases in their rates liability, the Government has put in place a £3.6 billion transitional relief scheme to limit and phase in changes in rate bills as a result of the 2017 revaluation. To help pay for the limits on increases in bills, there also have to be limits on reductions in bills. Under the transitional scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the appropriate multiplier). The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to the property after 1st April 2017, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes. Changes to your bill as a result of other reasons (such as changes to the amount of small business rate relief) are not covered by the transitional arrangements.
The transitional arrangements are applied automatically and are shown on the front of your bill. Further information about transitional arrangements and other reliefs may be obtained from Rushcliffe Borough Council or the www.gov.uk/introduction-to-business-rates.
More information on the 2017 revaluation can be found at www.gov.uk/introduction-to-business-rates/revaluation
Business rates retention
Up until 31 March 2013 the rates were pooled by central government and redistributed to Councils according to the number of people living in the area. The Business Rates retention scheme was introduced in April 2013, which means that instead of business rates going straight into the Treasury, Councils will be able to keep a proportion of the business rates income as well as growth on the income that is generated in their area. This is used to help support local services and means that Councils will have much greater incentive to grow businesses in their areas. For further details please see the GOV.UK guidance.
To register for business rates please email us at firstname.lastname@example.org or contact us by telephone on 0115 981 99 11 ext 706
As part of the budget announcement on 8 March 2017 the chancellor announced three measures he wants to introduced to help with increases in business rates and the relevant part of his speech can be found below:
“So today, as I promised many of my RHFs I would, I address those concerns with three measures which apply to the national business rates system for England.
First, any business coming out of Small Business Rate Relief will benefit from an additional cap.
No business losing small business rate relief will see their bill increase next year by more than £50 a month, and the subsequent increases will be capped at either the transitional relief cap or £50 a month, whichever is higher.
Second, recognising the valuable role that local pubs play in our communities, I will provide a £1,000 discount on business rates bills in 2017 for all pubs with a Rateable Value of less than £100,000 – that’s 90% of all pubs.
And third, I will provide local authorities with a £300 million fund to deliver discretionary relief to target individual hard cases in their local areas.”
The Council has now received the relevant guidance regarding the reliefs and is currently taken steps in order to implement them. In the meantime should you have any queries regarding the reliefs please contact David Zepernick on 0115 9148210.