Small business rate relief

Supporting small businesses relief

In the spring 2017 budget, the Chancellor announced further support for small businesses whose rateable value has changed due to the 2017 revaluation and are losing some or all of their small business rate relief or rural rate relief and, as a result, are facing large increases in their 2017/18 to 2021/22 bill.

The supporting small business relief will ensure that the increase is limited to £600 a year (£50 a month). If you qualify you will receive this relief each year until your actual rate liability is reached. State Aid rules apply to this scheme.

If you think you may qualify for this relief please email businessrates@herefordshire.gov.uk

About small business rate relief

Some ratepayers are eligible for relief on the grounds that they are a small business. You will be classed as a small business if:

  • You have only one property in England on which you are liable (wholly or jointly) for the payment of business rates
  • The rateable value of that property is £50,999 or less and remains below £51,000 throughout the financial year and
  • The property is occupied and you are not entitled to claim any other mandatory relief

*If you do pay rates on other properties they will be disregarded if their rateable value is £2,899 or lower, provided that the total of all properties' rateable values is £15,000 or less.

If you qualify, you will have your rates calculated using a lower multiplier. You can see how business rates are calculated.

Properties with a rateable value of less than £15,000 will receive additional relief depending on the rateable value of the property:

  • Rateable value £1 to £11,999 - 100 percent relief
  • Rateable value £12,001 to £14,999 - relief reducing from 100 percent to 01.01 percent (4 percent for every £120 above £12,001)
  • Rateable value £15,001 to £50,999 - reduced multiplier only

From 1 April 2018 you will be subject to the national multiplier of £0.493 if your rateable value is £51,000 or above. If your rateable value is less than £51,000 you will be subject to the lower rate multiplier of £0.480.

If you use more than one property

You can get small business rate relief if the rateable value of each of your other properties is less than £2,900. The rateable values of the properties are added together and the relief applied to the main property. You'll keep getting any existing relief for one year when you get a second property.

Apply online for small business rate relief

Or download and complete the PDF application form