Martin taggart

How to Claim Small Business Rate Relief in the UK

1. What Is Small Business Rate Relief?

Small Business Rate Relief (SBRR) is a UK government scheme that helps small businesses reduce their business rates. It provides a discount or exemption based on the property’s rateable value and the size of the business.

2. Who Is Eligible for Small Business Rate Relief?

You can claim SBRR if:

  1. Rateable Value of Property:
    • £12,000 or less: 100% relief, meaning you don’t pay any business rates.
    • £12,001 to £15,000: Relief tapers from 100% to 0%.
  2. Business Size:
    • Your business uses only one property.
    • If you occupy additional properties, they must have a rateable value under £2,899, and the combined value of all properties must not exceed £20,000 (£28,000 in Greater London).
  3. Property Type:
    • Applies to shops, offices, workshops, and other commercial properties.

3. Benefits of Small Business Rate Relief

  • Reduced or No Rates: Eligible businesses with properties valued at £12,000 or below pay no business rates.
  • Budget Relief: Helps small businesses save on operational costs.
  • Simplified Process: Applying for SBRR is straightforward and managed through your local council.

4. How to Claim Small Business Rate Relief

Step 1: Check Your Property’s Rateable Value

Step 2: Contact Your Local Council

  • Applications for SBRR are handled by local councils in England, Wales, Scotland, and Northern Ireland.
  • Visit your council’s website or contact them directly to access the application form.

Step 3: Complete the Application Form

  • Provide the following details:
    • Business Details: Name, address, and contact information.
    • Property Details: Rateable value and property address.
    • Evidence of Occupation: Proof that you are using the property for business purposes, such as utility bills or lease agreements.

Step 4: Submit Your Application

  • Submit the completed form and supporting documents to your local council.
  • Applications can often be submitted online, by email, or by post.

Step 5: Await Confirmation

  • Once your application is reviewed, the council will confirm whether you qualify for relief.
  • If approved, your business rates bill will be adjusted accordingly.

5. Small Business Rate Relief for Multiple Properties

  • Main Property: Relief is applied to your main property.
  • Additional Properties: You may still qualify if the total rateable value of all your properties is under £20,000 (£28,000 in Greater London).

6. Frequently Asked Questions

Q1: Can I backdate Small Business Rate Relief?
Yes, councils may allow you to backdate your claim, often up to six years.

Q2: Do I need to reapply each year?
No, once approved, SBRR is automatically applied, provided your circumstances remain the same.

Q3: What if I stop using the property for business purposes?
You must inform your local council immediately to update your rates.

Q4: Can I claim relief if I run my business from home?
No, SBRR applies only to commercial properties with a rateable value.

Q5: Are charities eligible for SBRR?
No, charities can apply for Charitable Rate Relief instead.

7. Tips for Successfully Claiming Small Business Rate Relief

  1. Act Quickly: Apply as soon as you believe you are eligible.
  2. Provide Accurate Information: Ensure all forms and documents are complete and correct.
  3. Monitor Changes: Regularly check your property’s rateable value for any adjustments.
  4. Consult Your Council: If you’re unsure about your eligibility, reach out to your local authority for guidance.

8. Resources for Claiming SBRR

9. Conclusion

Small Business Rate Relief provides significant financial savings for eligible businesses. By understanding the eligibility criteria and following the straightforward application process, you can reduce or eliminate your business rates, freeing up resources for growth.

Trisha Lee