A CHESTER accountancy firm is warning small businesses not to miss out on a key recession busting tax break, after figures revealed that more than £400m in Small Business Rate Relief (SBRR) is going unclaimed each year.
Mitchell Charlesworth partner, Rob Hall, said in England, small businesses are entitled to SBRR if the rateable value of their premises is below £12,000. Special rules apply for businesses that own more than one property, but with a total rateable value below this limit.
Mr Hall said critically, businesses with a rateable value of up to £6,000 will pay no business rates and this was extended by a year to September 2012 in the March Budget. This means that eligible ratepayers will receive SBRR at 100% on properties up to £6,000 rather than 50%. A tapering relief from 100% to 0% will also be in place for properties over £6,000 and up to £12,000 in rateable value for that period.
“SBRR is a terrific tax break for recession stricken small firms,” he said. “However, many business owners are unaware of the tax break and historically hundreds of millions have been left unclaimed, with the North West being one of the worst regions with only a quarter of eligible firms entering a claim.”
