Have you checked your rates recently?
Dependant on the location and size of your business, business rates are set to change and it could affect you in more ways than one!
A revaluation on the business rates has not happened since 2010, however the government have announced plans to amend this. From 1 April 2017, thousands of businesses will see a reduction in their rates due to changes issued by the Government. Furthermore, a promise had been made that any increase in rates will not see a rise of more than £50 on a monthly basis. Properties with a rateable value of £12,000 or less will not pay any business rates at all (dropped from £15,000) due to the government permanently doubling the Small business rate relief from 50 percent to 100 percent. This could save your business up to £5,900 in 2017-2018. A rateable value is a value set to a business property based on its size and location. Properties exempt would be those such as agricultural buildings and those used for religious or training reasons. This could save your business just short of £6,000. An estimated third of all small business in the UK will benefit from this change. In addition, many small businesses will see a reduction in their rates after falling out of the higher rate bracket due to the threshold of the standard rateable value being increased to £51,000.
The government are also working towards allowing local authorities to keep 100% of business rates, supplying the opportunity to regenerate a high street and attracting wealth. This will see an increase in the emergency services department as well as other services provided by the local council ensuring a better quality of life your local area. Currently councils have the option of keeping up to 50% of the income.
All in all, if you are a small business in the right location these amendments could have a positive affect on your business.
If you are unsure on whether the change in business rates will affect your business, feel free to get in touch with us here at Finance Box and we will be able to help.