We understand that local authorities have started receiving the money for the various business rates grants and are now in the process of starting to work through the huge administrative task of paying out those grants to qualifying businesses. 

So we thought it was a good time to remind everyone what their business is entitled to and what (if anything) they need to do. 

Business rates relief

The government introduced a business rates holiday for anyone who falls in either of these categories:

  • If you have a business premise and qualify for Small Business Rates Relief (this means your rateable value are below £15,000 per annum)
  • If you are a retail, hospitality and leisure business (rateable value between £15,000 and £51,000 per annum)

This means these businesses won’t pay rate for the period 1st April 2020 to 31st March 2021.

Claiming your rate holiday

If you are eligible for any of the above holiday, you will be contacted by your local authority regarding your position. You do not need to apply.

You should however review your existing qualifying trade held by the local authority.  If you have recently changed trade or believe the local authority may hold incorrect information on your business, you should contact them now to ensure this is updated before the eligible reliefs and grants are calculated.

Business Grants 

There are also grants available for businesses that qualify for small business rates relief or are in the retail, hospital and leisure sector with a rateable value of £15,000 and £51,000 per annum. Many businesses have already had theirs. View our easy to use flow diagram to see if you are eligible and have money waiting for you.

*Qualifying for Small Business Rate Relief – The criteria to be eligible for SBRR (Small Business Rate Relief) is as follows:

  1. your property’s rateable value is less than £15,000***
  2. your business only uses one property – you may still be able to get relief if you use more

**Retail, Hospitality or Leisure Sector – This is based upon the information held at the Local Authority. If you have recently changed trade or believe the local authority may hold incorrect information on your business.

***Rateable value – Your rateable value will be on your most recent business rate bill. This is the value HMRC deem the rent on your current property to be worth. 

Claiming your grant

If you are eligible for any of the above grants or reliefs, contact your local authority regarding your position. 

You should be considering 2 factors when reviewing the reliefs and grants available:

  1. The rateable value – You should firstly review your most recent business rates bill and this will show your rateable value. This is the value the local authority deem the rent on your current property to be worth. If you believe this to be incorrect as the property has recently changed or been adversely affected, then the Local Authority can undertake a business rates review to revise this value.
  2. The businesses qualifying trade – If you have recently changed trade or believe the local authority may hold incorrect information on your business, you should consider contacting them now to ensure this is updated before the eligible reliefs and grants are calculated.

Other actions to help your cashflow in short term

Time to pay arrangement

For any previous quarters of VAT or money owed for PAYE/NIC – speak to HMRC about time to pay. Read more about delaying payments in our dedicated article here.

VAT deferral – pay nothing until end of June

VAT payments for the quarters ended February, March or April you will have until 31st March 2021 to catch up on.  BUT REMEMBER, you must cancel your direct debit otherwise they will collect the funds automatically.

Current lending

If you already have finance facilities for your business, I would speak to them immediate as they are likely to be able to offer capital repayment holidays. This includes buy to let, personal and commercial mortgages. 

Contact me today!

Emma White

FCA

Partner

01474 853856

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