Good News for Small Businesses?
The revaluation of business rates for 2017 was published on 30th September 2016. The government revalues business rates every 5 years or so with the last revaluation in 2010 being based upon rateable values on 1st April 2008. These revaluations take place to adjust for the fluctuations and changes in the property market and because not every business fits the government revaluation model it is important for each business owner to look at how this revaluation effects them. The last revaluation happened just after the credit crisis of 2008 and different businesses have recovered (or otherwise) from this global economic difficulty.
The revaluation published on 30th September 2016 comes into effect on 1st April 2017. This provides business owners with the opportunity to appeal their valuation if they think it is wrong. The benefit of putting in an appeal before April 2017 is that it can be looked at before the rates bill is due. If you appeal after the bill comes out then any re-assessment could take years to be agreed. An early look at your revaluation would therefore be beneficial.
First indications are that this revaluation looks like good news for small businesses outside of London. Liverpool, Birmingham and Bradford for example would seem to be assessed for business rate reductions. If you live in one of these areas do check your business rate revaluation though. Not all assessments may be the same.
We do know that there is some good news for small businesses though. In the budget in March 2016 the chancellor announced the following benefits:
- Businesses occupying a single property with a Rateable Value of less than £12,000 will now pay no rates at all. It is estimated that over 600,000 small businesses won’t pay any business rates. This will provide each business with a saving of more than £6,000 a year.
- Businesses occupying a single property with a Rateable Value between £12,000 and £15,000 will be given tapered relief.
- Businesses occupying properties with a Rateable Value of between £15,000 and £51,000 will be eligible for the small business multiplier for each such property.
- Only businesses with a rateable value of over £51,000 will now pay the higher rate.
In addition to the over 600,000 small businesses that will not pay any rate a further 250,000 firms will also see their rates cut. I f you own a business that will benefit from tapered relief or the small business multiplier go to the government website www.gov.uk/introduction-to-business-rates/revaluation for more information.
Legislation and assessments do have a habit of changing so make sure the information you rely on is up to date. The information provided above was correct of 30th September 2016 but may change. Always contact a professional adviser to get the most up to date information.