As a business owner, understanding and managing your business rates is crucial to your success Business rates, also known as non-domestic rates, are taxes that businesses in the UK pay on the properties they occupy These rates help fund local services such as rubbish collection, street cleaning, and emergency services In this guide, we will delve into everything you need to know about your business rates, from how they are calculated to tips on how you can save money on them.
The first step in understanding your business rates is knowing how they are calculated In England, Scotland, and Wales, business rates are calculated based on the rateable value of your business property This rateable value is determined by the Valuation Office Agency (VOA) and is an estimate of how much your property would rent for on the open market The VOA reassesses rateable values every five years, with the most recent revaluation taking place in 2017.
Once the rateable value of your property is established, it is then multiplied by the national multiplier set by the government to calculate your business rates bill The national multiplier is set annually and is the same for all businesses within a particular region However, there are also additional discounts and exemptions that some businesses may be eligible for, such as small business rate relief or rural rate relief.
It is essential to keep in mind that business rates can be a significant expense for many businesses, especially for those located in prime locations or with large premises However, there are several strategies you can employ to manage and potentially reduce your business rates One common tactic is to appeal your rateable value if you believe it has been set too high You can do this by contacting the VOA and providing evidence to support your claim.
Another way to save money on your business rates is to take advantage of any available discounts or exemptions my business rates. For example, if your business property has a rateable value of less than £15,000 in England or £18,000 in London, you may be eligible for small business rate relief, which could reduce your rates bill to zero Similarly, businesses in rural areas may qualify for rural rate relief, providing a 50% discount on their business rates.
Furthermore, consider investing in energy-efficient measures for your business premises The government has introduced the Enterprise Zone Relief, which offers business rates discounts to companies located in designated Enterprise Zones that invest in energy-saving technologies Not only will this help you save money on your business rates, but it will also lower your energy bills and reduce your carbon footprint.
In addition to these strategies, it is crucial to stay informed about any changes to the business rates system that could affect your bottom line For example, the government introduced a temporary holiday on business rates for retail, leisure, and hospitality businesses in response to the COVID-19 pandemic This relief is set to expire in June 2022, so make sure to plan ahead and budget accordingly for when it comes to an end.
Finally, consider seeking professional advice from a qualified chartered surveyor or business rates advisor These experts can help you navigate the complex world of business rates, identify potential savings opportunities, and assist you in appealing your rateable value While there may be a cost associated with their services, the potential savings they can help you achieve far outweigh the initial investment.
In conclusion, understanding and managing your business rates is essential for the success of your business By familiarizing yourself with how business rates are calculated, exploring potential savings opportunities, and seeking professional advice when needed, you can effectively control one of your significant business expenses Remember, your business rates are not set in stone, and with the right approach, you could potentially save hundreds or even thousands of pounds So take the time to review your business rates and see where you can make improvements – your bottom line will thank you.