Increase in Level of Small Business Rate Relief

Lifeisbutadream

I have a letter this morning from my local council telling me that the government is introducing a temporary increase in the level of small business rate relief available to eligible business.

I do not understand the wording of the letter or what it means to me and wonder whether anyone can explain in laymans terms what I might expect to happen?

I currently pay around £500 per year in business rates.

And whilst I am on the subject - what do we pay business rates for anyway?? what do I get out of it???

lincroft1710

Business rates are a tax on non domestic property which goes towards funding local government spending.

ManAtHome

Announced in the Budget http://www.telegraph.co.uk/finance/financetopics/budget/7514609/Budget-2010-Small-shops-and-offices-give-cautious-welcome-to-rate-relief.html

Under the plans proposed in the Budget, businesses with a rateable value of up to £6,000 a year will be exempt from paying any rates at all for 12 months, with partial relief for properties rated up to £12,000.

Lifeisbutadream

lincroft1710 wrote: »

Business rates are a tax on non domestic property which goes towards funding local government spending.

Oh good - as long as my hard earned money is going somewhere important

Lifeisbutadream

ManAtHome wrote: »

Announced in the Budget http://www.telegraph.co.uk/finance/financetopics/budget/7514609/Budget-2010-Small-shops-and-offices-give-cautious-welcome-to-rate-relief.html

I am reading that means that I wont have to pay any business rates then???

Why would they do that?

Savvy_Sue

I only skimmed the letter this morning (first day back in the office after a couple of weeks leave) but I just got the impression that we'd have to pay a bit less, not that we'd be paying nothing at all. Although as a charity we also get additional relief so the rates are the least of our worries.

I imagine what it's for is to help small businesses struggling to make ends meet. Much like the scheme whereby you can defer payment of your rates.

ciano125

I'm not 100% sure, but I think this might only come in IF labour win the general election, so don't go spending the money just yet!!

[Deleted User]

The Conservatives seem to be offering various bits of help to small businesses as well.., well worth looking at. They seem to want to help those who want to become entrepreneurs do so. Unfortunately, we'll have to wait and see if these promises are worth the paper they are written on. I do know current policies DO NOT help people who want to start up a business tho.