Business Rates Reduction
What Are Business Rates?
Business rates are calculated based on the value of the property your business occupies, known as the ‘rateable value.’ This value is set by the Valuation Office Agency (VOA) and reflects the property’s open market rental value. The local council then uses this value to determine how much your business should pay in rates each year.
Who Could Qualify for Reductions and Discounts?
Not every business has to pay the full amount of business rates. There are various discounts and relief schemes available that could significantly reduce your bill. Here are some types of businesses and scenarios where you might qualify for reductions
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If your business occupies a property with a rateable value below a certain threshold, you could qualify for a compact business rate adjustment. This can mean a reduced rate or even no rates at all for properties with very low rateable values.
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If your business is in a rural area and serves the local community, you might be eligible for a discount of upto 100%.
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Charities and nonprofit organizations often qualify for reductions, which could reduce their bill by up to 80%. Some local councils might also offer additional discretionary adjustments.
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If your business is located in a designated growth area, you could benefit from significant savings through the growth zone rate program for up to five years.
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Some local authorities offer emerging business support to new businesses or start-ups, especially in areas where business development is encouraged.
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Many businesses can access consumer services adjustments, which can significantly reduce rates for shops, cafes, pubs, and other similar businesses.
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If your property is unoccupied, you may qualify for a vacancy rate suspension, meaning you won’t have to pay business rates for a certain period, usually three months.
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If your business is facing financial difficulties, you might be able to apply for financial distress support through your local council. This is a discretionary adjustment typically granted in exceptional circumstances.
Why Should You Check for Discounts?
Business rates can be a significant expense, but understanding and taking advantage of the available discounts and reliefs can make a big difference. By reducing your business rates, you can free up cash to reinvest in your business, helping it to grow and thrive.
It’s always worth checking with one of our business rates advisors to see what reliefs your business might be eligible for. We’re here to help guide you through the process, ensuring you don’t miss out on any potential savings!