Understanding business rates can save money
Understanding business rates for small businesses can be a challenge for many London SMEs, yet it’s a crucial area of focus for entrepreneurs. Whether you’re a landlord, tenant, property manager or coworking space operator, getting to know the system and your options can save you significant amounts of money.
Most London entrepreneurs aren’t familiar with the ins and outs of business rates. But there are a few key facts that you need to know.
Business rates basics
Basically, business rates are a tax on most non-domestic properties, such as shops, offices, bars and warehouses. The amount is determined by the property’s rateable value, which reflects its annual rental value.
Landlords don’t have to pay business rates on empty properties for up to three months. And thanks to Charities Rates Relief, charitable organisations can receive up to an 80% reduction.
Also, commercial property tenants can claim empty rates relief if their property is vacant and they are a registered ratepayer.
If you think your rate is too high, the good news is that challenging the current rateable value of a property is relatively straightforward. It just requires evidence such as photographs and rate bills. We recommend reading this blog for some more pointers.
Having said that, challenging rates for coworking spaces can be more complicated due to the multiple, short-term tenants hosted in the building. But it can be done!
Read this case study about a coworking space operator who worked with us to claim back almost £100,000 in business rates.
Get help with business rates for SMEs
Are you having problems with understanding business rates for your small business?
Do you think you’re paying too much and want to check that out? We’re here to help!
Our experts can support you as you navigate the business rates and relief system. Register for our free service today.
