The business rates system continues to be a key campaigning issue for the NHBF with the aim of achieving a fairer deal for salons and barbershops. Find out what the current situation is and what changed in the 2018 budget.
This blog post covers:
- What are business rates?
- Business rates announcement in the 2018 budget
- Business rate relief in England
- Business rate relief in Wales
- Business rate relief in Scotland
- Business rate relief in Northern Ireland
- NHBF business rates campaign
- Checklist
What are business rates?
Business rates are charged if all or part of a building is used to run a business, including salons and barbershops. There are some exemptions and reductions (called ‘reliefs’) available for smaller businesses. See more on this below. Reliefs vary depending on where your salon or barbershop is based in the UK.
Your local council will send you your business rates bill in February or March each year to cover the following tax year.
Business rates announcement in the 2018 budget
In the 2018 budget it was announced that business rates for hair/beauty salons and barbershops with a rateable value of £51,000 or less will be cut by a third for two years (2019-2021). This is in addition to the reliefs on business rates explained below.
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This guide will help you understand the basics of financial management for your business including tax, VAT, accounting and record keeping. It’s available to NHBF Members only. Not yet a Member? Join today. |
Read our blog post to discover the importance of having a cash flow forecast for your business.
Business rate relief in England
You can get small business rate relief if your property’s rateable value is less than £15,000 and you only use one property (you could still be eligible if you use more than one).
• You will not pay business rates if your rateable value is £12,000 or less.
• Properties with a rateable value of between £12,001 and £15,000 are entitled to a reduction. For example, 50% on a rateable value of £13,500.
Contact your local council to apply for business rates relief. Find your local council.
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Go to the GOV.UK website to: • Check the rateable value of your property. |
Business rate relief in Wales
A new permanent scheme has been in place since April 2018.
• Eligible business premises with a rateable value of up to £6,000 will not pay business rates.
• Those with a rateable value of between £6,001 and £12,000 will receive relief on a tapered basis from 100% to zero.
Find out more about business rates in Wales on the government website.
Go to the GOV.UK website to:
• Check the rateable value of your property.
• Request changes if you think your valuation details are wrong.
• View valuation details of other properties.
• Challenge your rateable value.
Business rate relief in Scotland
Business rates relief is available through the Small Business Bonus Scheme.
You will be eligible if both the following apply:
• The combined rateable value of all your business premises is £35,000 or less.
• The rateable value of individual premises is £18,000 or less.
In 2018-19, you may not have to pay any business rates at all if the rateable value of your property is £15,000 or less.
You will need to apply through your council. Scroll to the bottom of this mygov.scot webpage to select your council and apply.
Business rate relief in Northern Ireland
Small business rate relief is available. The current scheme is due to run until the end of March 2019. There are three levels:
• business properties with a net annual value (NAV) of £2,000 or less will receive a reduction of 50%.
• business properties with a NAV of more than £2,001 but not more than £5,000 will receive a reduction of 25%.
• business properties with a NAV of more than £5,001 but not more than £15,000 will receive a reduction of 20%.
These reductions should be applied automatically to your business rates bill. Find out more on the NIBUSINESS.CO.UK website.
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This guide will help you understand the basics of financial management for your business including tax, VAT, accounting and record keeping. It’s available to Members only. Not yet a Member? Join today. |
NHBF business rates campaign
The NHBF has long campaigned for a fairer system of business rates. The aim is to achieve fundamental reform to move away from a system based on property prices. We believe that business rates are unfair to ‘bricks and mortar’ businesses like salons and barbershops while online businesses pay nothing.
Our achievements so far include a successful campaign to increase thresholds for exemptions or reductions for small businesses.
The NHBF will continue to work with other trade associations and decision-makers at the highest levels to help usher in more far-reaching reforms.
Checklist
• Business rates are payable on property used for business purposes.
• Some exemptions and reductions are available for smaller businesses.
• Additional reductions were announced in the 2018 budget.
• Schemes vary in England, Wales, Scotland and Northern Ireland.
• The NHBF will continue to campaign for a fairer deal on business rates.