Deferral scheme
There is help available to deal with the Retail Price Increase in your 2012-13 business rate bill.
The Government has decided to put in place a business rates deferral scheme which will give you the option of spreading the Retail Price Index increase in your 2012-13 bill over three years, to help businesses manage their cash flow during the downturn. You will be able to defer payment of 3.2% of your 2012-13 bill - which is equivalent to 60% of the Retail Price Index increase - until 2013-14 and 2014-15. You will then pay back the total amount deferred over the next two years.
If you wish to opt into the scheme, please complete the application form. The form simply asks for your name, the address of the property and its reference number (which can be found on your business rate bill). Just complete those details sign the form and return it to the address on the bottom of the form. You do not need to pay anyone to do this for you.
You can apply at any time until 31 March 2013 provided you have some of your bill left to pay. We would encourage you to apply early so that you see the reduction in your monthly instalments sooner. However, you will be able to defer 3.2% of the whole year's bill regardless of when you apply. Provided we receive your application by 8 June you will see the reduction in your July instalment. If you apply later than that date you will see the reduction reflected in your next instalment or the one after that.
You may also like to know that the Government has temporarily doubled the rate of Small Business Rate Relief. If you are occupying only one property with a rateable value of below £6,000 you will pay no rates at all for 2012/13. Those occupying only one property with a rateable value of below £12,000 will benefit from a discount on their bill. The Government has also made it easier for eligible ratepayers with rateable values below £25,500 to have their bills calculated using the small business multiplier.
Business Rates Deferral scheme facts
You will be able to spread the Retail Price Index increase in your 2012/13 business rate bills over three years.
Full details of the scheme and how to apply are set out below.
If you wish to opt into the scheme, please complete the application form.
What's the deadline for applying?
You can apply at any time until 31 March 2013, as long as you have some of your bill left to pay. But we would encourage you to apply early.
How much of my bill can I put off paying?
You are able to put off 3.2% of the whole year's 2012/2013 business rates bill.
What if I have paid some or all of my bill?
You are able to put off paying 3.2% of the whole 2012/2013 bill, as long as you have that amount left to pay.
How will my payments be reduced?
The amount you are putting off paying will be spread over your remaining payments for the whole year. For example, if you can put off £100 and you have four payments left to make, each of those payments will be reduced by £25.
Will I pay interest on the amount I put off paying?
No.
How soon will I see the benefit of making lower payments?
Provided that we receive your application by 8 June you will see the reduction in your July instalment. If you apply later than that date you will see the reduction reflected in your next instalment or the one after that. The amount you can put off paying will not change in both situations.
When will I have to pay back the amount I put off?
You will pay back half the amount in 2013/14 and half in 2014/15, as well as paying your full bill for those years. Your rates bills in the next two years will include details of the amounts you have put off paying and need to pay, and your payments will be adjusted in line with this.
What if I have more than one property?
If you have more than one property in the same council area, you only need to fill in one application form. You will need to give us the address of all the properties you want to claim for. If you have properties in more than one council area, you will need to apply to each council separately.
What if I stop occupying the property?
You will need to pay the amounts you have a duty to pay by law, including the amount you have put off paying. We will send you a revised bill, letting you know how much you should pay.
What if I am already in arrears?
You do not automatically have the right to put off making any payments if you have already lost the right to pay your bill by instalments. You may still apply to put off making a payment, but it will be up to us to decide whether or not to approve this. You may also want to talk to us to discuss what other help is available.
Will I be able to defer on the Business Rate Supplement element of my bill?
Yes. The deferment will also apply automatically to the BRS element of your bill (if applicable) on a pro rata basis. The only BRS in place for 2012-13 is the one levied by the Mayor of London to fund Crossrail which applies in London only at a rate of 2p on properties with a rateable value above £55,000. However the 2p rate for the Crossrail BRS does not increase by inflation annually - so this element of your bill will in fact be the same as in 2011-12 if your rateable value is unchanged.
Is there any other help for businesses?
Further details of the full range of support and information available to businesses are available at Business Link.
Is there any other help with rates bills for small businesses?
If you run a small business, further help may be available to pay your bills, with Small Business Rate Relief. The level of Small Business Rate Relief has also been doubled for the whole of 2012-13.
If you are occupying only one property with a rateable value of below £6,000 you will pay no rates at all for 2012/13.
Those occupying only one property with a rateable value of below £12,000 will benefit from a discount on your bill. The Government has also made it easier for eligible ratepayers with rateable values below £25,500 to have their bills calculated using the small business multiplier.
Contact us if you believe that you may be eligible.
Further details are also available at Business Link.