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Thursday
Mar252010

Help With Business Rates For UK Limited Companies

A colleague of mine reminded me today of the scheme local authorities have in place to assist UK limited companies in paying their business rates. It’s a relatively new piece of legislation that will allow you to defer up to 3% of your total business rates for the 2009/10 financial year.

At first glance it doesn’t seem like it’s much of an offer from your local authority but if you’re starting up a new limited company, any financial relief will of course be welcome. I’m not sure if you’re aware that business rates are set in April of each year against the inflation index of the previous financial year. Originally the business rates deferment scheme was put in place to provide a buffer against steep rises in inflation in 2008. With 2009/10 being the economic downturn that would have meant quite steep rates for businesses at a time when cash flow could have been a major issue.

On further discussions, my colleague and I have confirmed that the scheme is still in place and is open to all business ratepayers. If you’ve recently opened or are planning on opening premises shortly, you may wish to consider applying to your local council to defer the 3% of the total.  Just remember to bear in mind that it’s a deferment and will still need to be paid at some point in the future.

There are a multitude of government and charity schemes that can also assist in obtaining rates reliefs. Depending on the type and location of company you are setting up, you may be able to apply for assistance through these schemes.

If you’re not sure of your obligations for business rates or are worried about meeting your rates, don’t hesitate to contact one of our advisors for advice on how to meet cash short flows in your business. We can also advise you on the options of rates relief schemes available.

 



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