Budget 2016 – Business Rates

Business Rates – Reductions Planned

The Chancellor has decided that the Small Business Rate Relief (SBRR) will be permanently doubled from 50% to 100% with effect from 1 April 2017. Moreover, the thresholds are being increased to benefit a greater number of businesses.

Businesses with a property that has a rateable value of £12,000 or less will receive 100% relief. Businesses with a property that has a rateable value between £12,000 and £15,000 will receive tapered relief. This means that 600,000 small businesses, occupiers of a third of all properties, will pay no business rates at all – a saving worth up to £5,900 in 2017-18. An additional 50,000 will benefit from tapered relief.

Additionally, the threshold for the standard business rates multiplier will be increased and only apply to those properties with a rateable value of over £51,000, taking 250,000 smaller properties out of the higher rate.

From April 2020, taxes for all businesses paying rates will be cut through a switch in the annual indexation of business rates from the RPI to be consistent with the main measure of inflation, currently the CPI, which is typically lower.  In 2020-21 alone it is estimated that this will be worth £370 million to businesses and the benefit will grow significantly thereafter.

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Dec 10

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Dodd & Co has been employed as our business accountants for over thirty years.  During this time we have worked closely with Alan McViety who has advised us through the growth and diversification of our family business. They have always offered an exceptional personal service, which has made a real difference to our business and provided invaluable support.   I would describe them as efficient, highly professional and pro active in coming forward with advice and ideas. Over the years they have developed a great understanding of our business and I would highly recommend their services.
-- John Cannon, Cannon Hire Haulage