Business Rate Deferral Scheme for 2012/13
The Government is giving businesses the option
of spreading the Retail Price Index increase (due to inflation) in
business rates bills over three years. Businesses will be able to
defer payment of 3.2% of their 2012-13 rates bills until 2013-14
and 2014-15. You will then pay back the total amount deferred over
the next two years.
For example:
If your business rates bill is for £500 then
you will be able to defer £16 of this.
If your business rates bill is for £1,000 then you will be able to
defer £32 of this.
If your business rates bill is for £5,000 then you will be able to
defer £160 of this.
If your business rates bill is for £100,000 then you will be able
to defer £3,200 of this.
The deferred amount will still have to
be repaid over the next two years.
How do I Apply?
We will be sending businesses
an application form in April and May. The form will simply ask
for your name, the address of the property and its reference number
(which can be found on your business rate bill). You will
need to complete those details, sign the form and return it to
us. You do not need to pay anyone to do this for you.
Small Business Rate Relief
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 your
bill. The Government has also made it easier for eligible
ratepayers with rateable values below £18,000 by having their bills
calculated using the small business multiplier.
If you are not claiming and think you may be
eligible then please contact the Local Taxation Team on (01539)
797758. Full details about the scheme are available on our
Rates Relief for Small Business pages.
Frequently Asked Questions
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.
What’s the deadline for applying?
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 that you
return the application by 9 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.
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 payment
No.
How soon will I see the benefit of making lower payments?
Provided that you return the application by 9 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
the council 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.
What if I don’t keep up with my payments?
If you are struggling to keep up with your payments, you should
talk to us to discuss what other help is available.
Is there any other help for businesses?
Further details of the full range of support and information
available to businesses are available at:
http://www.businesslink.gov.uk/
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 £18,000 to have their bills
calculated using the small business multiplier.
Contact the Local Taxation Team on 01539
797758 if you believe that you may be eligible.
Further details are available
at: http://www.businesslink.gov.uk/