Are you worried that business rates could inflict serious damage on your company’s bottom line? If so keep reading, as Prestige Tax and Trust Services asks; how much is small business rate relief?
Business rates are a tax the government of the UK applies to non-domestic buildings. They can present a significant outgoing for SMEs with limited cashflow. If you learn how to work out business rates, you’ll soon find out that you can reduce this burden by applying for small business rate relief. However you can only apply if you run your company from property with a rateable value of under £12,000.
How much you get
If you meet this criteria, you’re eligible to claim small business rate relief. The usual rate is 50%, however you can receive a small business rate of 100% until 31st March 2016 if the rateable value of your property is £6,000 or less. The rate of relief gradually decreases from 100% to 0% for non-domestic properties whose rateable values fall between £6,001 and £12,000.
The rules change if you operate your firm from multiple buildings. In this instance, you can only claim small business rate relief if each of your other properties, aside from the main one you use to operate your company, has a rateable value of £2,600 or less.
If you meet this criteria, then the government will add together the rateable value of all your properties and apply small business rate relief to the main property you use to operate your firm. Furthermore, if you acquire a second property you’ll be allowed to keep receiving any existing relief you’re already claiming for one year.
Protect your business
Essentially, this means that if you operate your company from a building with a rateable value of under £12,000, you could be eligible to receive up to 100% of small business rate relief. This will allow you to protect your business from the significant financial burden of business rates.
This will allow you to build a business that will provide you and your family with a stable income. However you’ll also need to safeguard your company in the event of your death to ensure that your loved ones will benefit from your hard work over the long-term. Prestige Tax and Trust Services has developed a business protection service that you can utilise to shield your firm in the event of your death.