Business Rates relief – what is a “small business”?
Ever since 1990 business rates liability is affected by whether the Law assumes your property to be Large or Small. This determination is made by the size of your Rateable Value.
| LIST | OUTSIDE LONDON | GREATER LONDON | |
|---|---|---|---|
| Small Ratepayer | 2005 | £14,999 RV or less | £21,499 RV or less |
| 2010 | £17,999 RV or less | £25,499 RV or less | |
| Large Ratepayer | 2005 | £15,000 RV or more | £21,500 RV or more |
| 2010 | £18,000 RV or more | £25,500 RV or more |
If you are large then any increases in liability are phased in more quickly than those of small businesses.
| SMALL RATEPAYER | LARGE RATEPAYER | |
|---|---|---|
| Increase in liability limited to | 5% | 12½% |
| Decrease in liability limited to | -20% | -4.6% |
The actual rate in the pound, known as the National Non Domestic Rate Multiplier (NNDR) utilises two different rates, the basic rate for small ratepayers whilst the large Ratepayers face the basic rate plus top up.
| SMALL RATEPAYER | LARGE RATEPAYER | ||||||
|---|---|---|---|---|---|---|---|
| 2009/2010 | NNDR | £0.481 | £0.481 | + | £0.004 | = | £0.485 |
| 2010/2011 | estimated NNDR | £0.413 | £0.413 | + | £0.004 | = | £0.417 |
If your Rateable Value is near in value to the small/large threshold of £18,000 RV (inside Greater London £25,500 RV) then extra care is required to make sure you do not waste an opportunity to become a Small Ratepayer. Contact Roderick Bisset at our Crawley bisset@bmh.co.uk
