Non Domestic Rates or Business Rates is a tax on all business and non-domestic properties.
A company or a person who occupies all or part of a non-domestic property is liable to pay Business Rates on this property.
The money collected is paid into a central pool and the Government then gives each Council a share of this money. This money is then used to help to pay for the service that the Council provides.


2010 REVALUATION

Every 5 years all non-domestic properties are subject to a revaluation. The current rating list is based on the 2010 revaluation. Transitional arrangements are in place during this 5-year period so that the effects of any large increase or decrease in Business Rates are phased in.
Transitional arrangements are applied automatically and are shown on the front of the bill.
More information on the 2010 Revaluation can be found at www.voa.gov.uk
The Valuation Office Agency’s website allows you to:

2009/10 DEFERRAL SCHEME

The right to apply for deferral has now ended. For those ratepayers who applied for this scheme, the deferred amount will be collected in 2010/11 and 2011/12 will be included in the bills for each of those years respectively.


SMALL BUSINESS RATE RELIEF

In 2005 the government introduced a new relief, to help small businesses.
From 1st April 2010 eligible hereditaments with a rateable value of less than £6,000 will get 50% rate relief. This will decrease on a sliding scale of 1% for every additional £120 of rateable value up to £12,000 where relief will be nil.
The hereditament must be within the thresholds above.
The relief is only available to ratepayers with either:
One property; or
One main property where the ratepayer has other additional properties providing those additional properties have rateable values which do not exceed £2,599 and the total value of all properties remains under £17,999. The relief will only be applied to the main property.
The charge on the additional hereditaments (under £2,600) will be based on the higher multiplier.
Hereditaments in the buffer zone (RV between £12,000 and £17,999) must apply for the relief in order that the bill be calculated using the Small Business rating multiplier. The same eligibility criteria applies.

BUDGET – ANNOUNCEMENT

INCREASE IN LEVEL OF SMALL BUSINESS RATE RELIEF

This is important news that could benefit your business. The Government is introducing a temporary increase in the level of Small Business Rate Relief (SBRR) available to eligible businesses. These changes will come into effect in October 2010. Meanwhile, you should ensure that you continue to pay your existing business rates bill.

On 24 March, the Chancellor of the Exchequer announced that the Government will temporarily increase the level of SBRR so that eligible ratepayers will pay no rates on properties with rateable values up to £6,000, with a tapered relief between 100% and 0% for properties with rateable values between £6,001 and £12,000. The new levels of relief will be available for 12 months from 1 October 2010 to 30 September 2011.

There are no other adjustments to the scheme. For example, the eligibility criteria remain the same. Details of the criteria are set out in the attached fact sheet. The Government has confirmed that it will meet the costs of the increased levels of relief. There will be no changes to the multiplier so those businesses that do not fall within the eligibility criteria of the scheme will see no change in their bills.

The Government is making this change to the SBRR scheme to provide help with the fixed costs of starting and running a small business as the economy starts growing again.

What happens next?

You do not need to take any action. The Government is now preparing the necessary legislation to give effect to the proposals announced at the Budget. Subject to approval by Parliament, the Government expects that this will be completed by the summer.

Once the legislation is in place, your local authority will need to adjust the business rates payable by all businesses that meet the criteria for SBRR and that occupy properties within the rateable value thresholds set out in the revised scheme. If amendments need to be made, they will issue revised bills. They will contact affected ratepayers about this at the appropriate time.

What do you need to do?

Until you are told otherwise by your billing authority, you must continue to keep paying your current business rates bill. Current collection and enforcement procedures will continue to apply to ratepayers who miss a scheduled instalment.

For those already claiming small business rate relief, there is no need for you to do anything else at this stage. A revised business rates bill will be sent to you later this year if you are affected by the changes.

If you think that you meet the criteria, but have not submitted a claim for small business rate relief, you should contact your local authority to see if you are entitled to support.

Attached to this letter is a fact sheet setting out the key features of the revised arrangements.

It is increasing the support available to small businesses who pay business rates. It is doing this by increasing the level of Small Business Rate Relief available to eligible businesses for a temporary period. From 1 October 2010 to 30 September 2011, eligible businesses with a rateable value of up to £6,000 will be entitled to 100% relief on their bill. If your rateable value is between £6,001 and £12,000, you will be entitled to relief on a sliding scale between 100% and 0%.

Who is eligible?

Anyone who is entitled to Small Business Rate Relief and has a rateable value of £12,000 or less will be eligible for the increased level of discount off their rates bill.

When does this happen?

The revised reliefs will apply between 1 October 2010 and 30 September 2011.

Is it worth it?

Yes! The Government's changes will mean that those who, for example, are entitled to a 50% reduction in their rates bill will be entitled to a 100% reduction between 1 October 2010 and 30 September 2011.

Do I need to meet any criteria?

Small Business Rates Relief is available to all businesses whose rateable value is less than £18,000. To qualify for the relief, businesses must apply to their local authority and confirm that:

Where the rateable value of the hereditament is £12,000 or less, the business is eligible to claim a discount on the rates bill, as well as having their bill calculated on the basis of the small business rate multiplier.

For businesses with a rateable value of between £12,001 and £18,000 (or £25,500 in London), there is no discount, but the business will continue to be entitled to have their rates bill calculated using the small business rate multiplier.

Do I need to do anything?

If you already claim the relief, you do not need to do anything more. Your local authority will calculate your revised payment schedules and write to you later this year.

If, however, you do not already claim the relief (see the criteria listed above), but think you may be entitled to the relief, you should contact your local authority who can advise you on what you need to do.

Can I change my bill payments now?

You must continue to pay your current bills, on the existing payment schedule from your local authority. Current collection and enforcement procedures will continue to apply to ratepayers who miss a scheduled instalment. Your local authority will write later this year to advise of any reductions that might be necessary to your 2010/11 bill. Any changes to your liability that are necessary for 2011/12 will be set out in your 2011/12 bill when that is prepared in March 2011.

When will I find out what my revised bill will be?

The changes need to be agreed by Parliament. Subject to Parliamentary approval, the Government expects that local authorities will be able to issue revised bills for 2010/11 before 1 October 2010.

What if I have already paid too much by 1 October?

If, as a result of the payments you have already paid by 1 October 2010, you have paid an amount greater than any revised bill you are due from the new arrangements, then your local authority will arrange any necessary refund to be made to you.

My rateable value is over £12,000. Do I get any help?

If your rateable value is over £12,000, you are not entitled to a discount within Small Business Rate Relief. However, if your rateable value is below £18,000 (or £25,500 in London), and you are eligible for Small Business Rate Relief, you will be paying your business rates using the Small Business Rate multiplier which is set at a lower level than the general business rate. In these circumstances, there will be no change to your bill.

Why is the Government doing this?

The Government is making this change to the SBRR scheme to provide help with the fixed costs of starting and running a small business as the economy starts growing.

What happens if there is a new Government?

Introduction of the measure will be subject to passage of the necessary legislation by Parliament, following an election.


I have deferred some of my liability for business rates for 2009/10 into the next year. Does this scheme mean I no longer have to pay those rates?

The Chancellor's announcement relates solely to the business rate liability between 1 October 2010 and 30 September 2011. If you are paying any other rates bill from earlier periods, for example through the deferral of rates liabilities scheme, you should continue to make those payments to your billing authority.