Small companies urged to apply for rates relief

The Association of Chartered Certified Accountants (ACCA) has issued a reminder to small local businesses to apply to their Local Council for Rates Relief to reduce the burden of the recently released business rates demands.

Glenn Collins, Head of Business Advisory Services at ACCA said: "Occupiers trading from a single property with a rateable value of up to £9,999 are entitled to claim small business rates relief - which could have the effect of reducing a rates bill by up to 50%. However, rates relief has to be applied for - it is not automatically deducted from any rates bill."

A business with a rateable value of less than £5,000 will be eligible for the relief, which will provide a 50% reduction in their rates bill. The relief will then decrease on a sliding scale of 1% for every £100 of rateable value over £5,000, to a maximum of £9,999.

The tax relief will also extend to small businesses with additional properties, where individual rateable values do not exceed £2,200 and the combined rateable value of all the properties is under £15,000 (£21,500 in London).

Businesses should also remember that a range of additional reliefs are available to them at the discretion of their local authority. These include transitional relief; discretionary relief; former agricultural premises relief; small unoccupied premises relief and qualifying rural relief.

Collins added: "Businesses can also appeal against their new rateable value, but should be wary of any unsolicited approaches from companies offering - for an upfront fee - to save them money. Although tempting, such offers should be treated with great caution, particularly as there is now only one opportunity to appeal. It is best to seek independent advice from a qualified rating surveyor."