Business Rates

Non-Domestic Rates, or business rates, are collected by local authorities, like Wealden for central government. Business rates mean businesses contribute towards the cost of providing local services, as the rates are pooled by central government and redistributed to local councils according to the number of people living in the area. Each non-domestic property has a rateable value set by valuation officers of the Valuation Office Agency (VOA). The VOA is an agency of the Inland Revenue.

Please note that business rates do not cover collections of business waste. This must be paid for separately either through our commercial waste department or another registered waste carrier.

BUDGET 2010 – ANNOUNCEMENT

INCREASE IN LEVEL OF SMALL BUSINESS RATE RELIEF

This is important news that could benefit your business. The Government is introducing a temporary increase in the level of Small Business Rate Relief (SBRR) available to eligible businesses. These changes will come into effect in October 2010. Meanwhile, you should ensure that you continue to pay your existing business rates bill.

On 24 March, the Chancellor of the Exchequer announced that the Government will temporarily increase the level of SBRR so that eligible ratepayers will pay no rates on properties with rateable values up to £6,000, with a tapered relief between 100% and 0% 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.

There are no other adjustments to the scheme. For example, the eligibility criteria remain the same. Details of the criteria are set out in the attached fact sheet. The Government has confirmed that it will meet the costs of the increased levels of relief. There will be no changes to the multiplier so those businesses that do not fall within the eligibility criteria of the scheme will see no change in their bills.

The Government is making this change to the SBRR scheme to provide help with the fixed costs of starting and running a small business as the economy starts growing again.

What happens next?

You do not need to take any action. The Government is now preparing the necessary legislation to give effect to the proposals announced at the Budget. Subject to approval by Parliament, the Government expects that this will be completed by the summer.

Once the legislation is in place, we will need to adjust the business rates payable by all businesses that meet the criteria for SBRR and that occupy properties within the rateable value thresholds set out in the revised scheme. If amendments need to be made, we will issue revised bills. We will contact affected ratepayers about this at the appropriate time.

What do you need to do?

Until you are told otherwise by us, you must continue to keep paying your current business rates bill. Current collection and enforcement procedures will continue to apply to ratepayers who miss a scheduled instalment.

For those already claiming small business rate relief, there is no need for you to do anything else at this stage. A revised business rates bill will be sent to you later this year if you are affected by the changes. If you think that you meet the criteria, but have not submitted a claim for small business rate relief, you should contact us to see if you are entitled to support.

Business rates deferral scheme

Regulations came into force on 31 July 2009 enabling businesses to defer payment of 60% of the increase in their business rates bill until 2010-2011 and 2011-2012.

More information can be found on a leaflet issued by the Dept. Communities and Local Government. This has been sent to businesses with an application form and accompanying letter.

You do not have to defer payment of your business rates but if you wish to you MUST complete and return an application form. Your application must be received before 31 March 2010. Until you receive your amended bill you must keep paying at the current rate which is set out in your 2009/10 rate demand.

Other changes are;