You are considered to be a small business for rates relief purposes if your property has a rateable value below £18,000 (£25,500 in Greater London).
Even if you don’t qualify for small business rate relief, see below, your business rates will be calculated using the small business multiplier instead of the standard one. This is the case even if you have multiple properties.
Small business rates relief
You will qualify for this relief if:
• you only use one property
• its rateable value is less than £12,000
How much is the relief worth?
Until 31 March 2015 you’ll get 100% relief (doubled from the usual rate of 50%) for properties with a rateable value of £6,000 or less. The rate of relief will gradually decrease from 100% to 0% for properties with a rateable value between
£6,001 and £12,000.
What if you have more than one property?
You could still qualify for small business rate relief if the rateable value of each of your other properties is less than £2,600. The rateable values of the properties are added together and the relief applied to the main property.
Contact your local council to apply for small business rate relief.
Rural rate relief
You could qualify for rural rate relief if your business is in a rural area with a population below 3,000. You get between 50% and 100% off your business rates.
You can get this relief if your business is:
• the only village shop or post office with a rateable value of up to £8,500
• the only public house or petrol station with a rateable value of up to £12,500
Local councils can also:
• top up the mandatory 50% relief to 100%
• give relief to other rural retail businesses of up to 100% (for properties with a rateable value under £16,500)
There is support for small businesses, so if in doubt contact your local council and see if you qualify for any of these rates support schemes.