Business Rates – Reapply for the Small Business Bonus Scheme Now

Several of our clients have received rates demands over the last few days, even though they fall within the Small Business Bonus Scheme which should result in no or reduced rates being payable.  These demands have been generated because eligible businesses must reapply for the Small Business Bonus Scheme from 1 April 2023.   If you have not yet done this and are getting these demands, you should complete the relevant form as soon as possible.

You can apply for the Small Business Bonus Scheme via your local council by completing an application form.  This should be available on your local council’s website. The application form asks for your name, address and the rateable value of the business property and for a signed declaration for anti-fraud purposes.

If you have one non-domestic property and the rateable value is:

• up to £12,000 – you will get 100% relief (no rates payable)
• from £12,001 to £15,000 – you will get from 100% to 25% relief
• from £15,001 to £20,000 – you will get 25% to 0% relief

For ratepayers with more than one property and where the total rateable value of all your non-domestic properties is between £12,001 and £35,000, then the relief is as follows:

• 25% on each individual property with a rateable value of £15,000 or less
• from 25% to 0% for individual properties with rateable values from £15,001 to £20,000

Note that:-

• Car parks, car spaces, advertisements and betting shops will be excluded from eligibility from 1 April 2023

• Small Business Transitional Relief has also been introduced for those losing or seeing a reduction in Small Business Bonus or Rural Rates Relief (including due to Small Business Bonus Scheme exclusions) on 1 April 2023. Subject to qualifying criteria, the maximum increase in the rates liability relative to 31 March 2023 will be capped at £600 in 2023/24 rising to £1,200 in 2024/25 and £1,800 in 2025/26.

Examples of Small Business Bonus Scheme relief can be found on the following link

sbbs-relief-examples-2023 (edinburgh.gov.uk)

If you believe that your rates notice is incorrect you should contact your local council.

If you require any assistance with this, please do not hesitate to get on touch with your usual Johnston Smillie contact.

The information in this blog provides only an overview of Scottish Government guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed Scottish Government guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

Photo by Tim Mossholder on Unsplash