April 2005 saw significant rises in rates bills for many businesses. However at the same time, to soften the blow, a new Small Business Rate Relief was introduced.
Businesses occupying a property with a rateable value of below £5,000 get 50% relief and this decreases by 1% for every additional £100 of rateable value up to £9,999. In addition the bill is calculated using the small business non-domestic rating multiplier (41.5p).
Furthermore businesses with rateable values of between £10,000 and £14,999 (£21,499 in London) have their liability calculated using the small business multiplier.
The relief is not given automatically. Businesses must apply to their Local Authority on an annual basis.
The Federation of Small Businesses reports that 22% of businesses across England have not applied for the relief even though they are entitled to do so.
Try www.mybusinessrates.gov.uk if your business is based in England. Those in Wales, Scotland and Northern Ireland are advised to refer to their central or local authority.
In Northern Ireland refer to www.ratecollectionagencyni.gov.uk in Scotland go to www.scotland.gov.uk and in Wales www.wales.gov.uk