The Budget 2016 announcements are still being understood, but we have a brief lowdown for you on the small business rate relief (SBRR) and what savings this could mean for you.
Currently 100% Small Business Rate Relief (SBRR) is available on business premises with rateable values of £6,000 or less, above this and to a level of £12,000 a proportion of the relief is available, reducing rates paid between 25% and 75%. Since being introduced some years ago, SBRR has always been considered temporary so, in each subsequent budget there has been an announcement about its continuation.
And here, for our Brighton clients, the link to Brighton & Hove Council website where you can make a claim and even backdate SBRR to April 2010 .
In the Budget 2016 George Osborne announced that from 1st April 2017 100% SBRR will be available up to a rateable value of £12,000 with tapered relief to £15,000.
600,000 businesses will benefit from 100% relief and a further 51,000 will receive tapered relief.
Also from April 2017, lower rates will apply to businesses premises rateable values up to £51,000 by increasing the threshold at which standard business rates are paid. This is a significant rise from the current level of £18,000 and will capture 250,000 businesses across the UK although the difference between the multipliers are only 49.7 & 48.4 so the benefit to each business is relatively small, but still worth having!
The benefits of these changes will have a greater impact where rateable values are lower, hence in Brighton and London fewer businesses will benefit. As an example, a local independent café in Brighton will benefit by the increase in the SBRR as they will now have 100% relief instead of the taper. Digital businesses are likely to benefit as their space needs are relatively low compared to turnover and profit levels, manufacturing businesses will generally not benefit due to their space requirements. So, when it comes to supporting small businesses this is a bit of a blunt instrument.
There was no mention of the continuation of Retail Relief which is due to finish at the end of this tax year (2015/16). It seems that retailers will lose their subsidy of £1,500 from 2016/17.
If you’d like help keeping your costs down or managing your business growth call us now on 01273 882200, and ask how we support small businesses with our accountancy and consulting services.
Don’t forget you can also Skype us, or email us at: firstname.lastname@example.org for some tailored business advice.
All details above were correct at the time of publishing - for more up to date information please
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