You may have spotted in the news that business rates are going up from 1 April 2023. (The business rates year is from 1 April to 31 March the following year).
A review of business rates – called a ‘revaluation’ happens every few years, when the Valuation Office Agency updates the rateable values of all business and other non-domestic properties in England and Wales. (Previously the revaluation has happened every 5 years but discussions are ongoing about whether this needs to happen more frequently.)
The updates reflect changes in the property market, as well as changes that have occurred across different business sectors and different parts of the UK.
If your business occupies a rental property, you or your landlord may have received a letter from Inland Revenue to inform you about the changes you can expect. (Don’t worry if you haven’t, as all the information is available on the government website).
Revaluing properties helps to ensure the bills you pay for business rates are based on up-to-date information, and also helps to redistribute the amount paid in business rates more fairly.
But the changes coming into effect in April 2023 will mean that some businesses have to pay more.
You may find it helpful to read this free resource from Smarta about calculating your business rates.
If you’re worried about covering the bills for your small business, you may be able to get a discount from your local council known as business rates relief.
In most cases, you won’t need to do anything, and your bill will be updated automatically after the revaluation. But to help you prepare for the changes, we’re here to explain what relief is available and how to check your eligibility.
You can use this online service to find the ‘rateable value’ of a property in England or Wales.
You can get small business rate relief if the property used for your business has a rateable value of less than £15,000. If that’s a YES for you, your first step is to contact your local council to apply for small business rate relief.
If you’re not sure which council you fall under, click here and enter your postcode to find out.
If you don’t qualify for Small Business Rates Relief (for example, if the value of your property is higher than £15,000) you may be entitled to other forms of business rates relief.
For further information please click this link.
