Help with business rates
More time to pay your 2009-10 business rates increase
On 31 July, local authorities will be writing to local businesses offering them the option to spread payment of this year's inflation up-rating to business rates over three years, under new legislation announced by the government in March.
Business rates are adjusted every April in line with the Retail Prices Index for the previous September. The new measure is designed to smooth the effects of the spike in inflation of 5 per cent in September, which would have seen businesses facing an impact on their cash flow this year.
From 31 July:
- All business ratepayers can apply to their local council to put off 3 per cent of their whole year's 2009-2010 business rates bill. So, if a yearly bill is £5,000, ratepayers will be able to postpone paying £150.
- Those who accrued a rise in their bill because transitional relief has come to an end can defer 60 per cent of the increase.
The scheme builds on other measures to help businesses meet the challenges of the current economic climate, such as HM Revenue & Customs' Better Payment Support Service, which has already benefited over 100,000 businesses by giving them extra time to pay National Insurance contributions, VAT and corporation tax bills. See our page on the Better Payment Support Service.
There are also a number of reliefs available to reduce rates liability. These include Small Business Rate Relief and reliefs for Charities, Community Amateur Sports Clubs, and certain businesses in rural areas. Find out more information in our guide on business rates.
Use our interactive tool to assess how well your business is performing.
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