Why do I have to pay Business Rates/ What services do I get?
There are a number of discretionary reliefs available. Full details are contained in the Councils Non-Domestic rates Discretionary Rate Relief Policy which is available on our website. The reliefs include:
Business Rates are a contribution made by businesses towards the cost of all services provided. The money we collect is shared between the Government, Chorley Council and Lancashire County Council. This income, along with council tax and other income raised through chargeable services, as well as both general and specific grants, is used to pay for local services. While this doesn’t include all direct services i.e. refuse collection, business ratepayers benefit from services such as street lighting, road maintenance, the police, ambulance and fire services.
How has my rates bill been calculated?
We calculate your bill by multiplying the rateable value of your property by the appropriate non-domestic multiplier'. This gives the amount of rates payable for the year. There are two multipliers, the Standard Multiplier and the Small Business Rate Multiplier. Both are set annually by central government for the whole of England and change every year to move in line with inflation. The Standard Multiplier is higher as it includes a supplement to pay for the small business rate relief scheme.
The multipliers for 2018/2019 are:
• SBR Multiplier – 48.0 pence in the pound (46.6 pence in the pound for 2017/2018)
• Standard Multiplier – 49.3 pence in the pound (47.9 pence in the pound for 2017/2018)
If the rateable value of your property is less than £51,000 your bill will have been calculated using the lower Small Business Rate Multiplier, unless the property is empty or you are receiving charitable relief.
If the rateable value of your property is £51,000 or over, if the property is empty, or if you are receiving charitable relief your bill will have been calculated using the Standard Multiplier.
How can I tell which multiplier you have used?
The multiplier is shown in the calculation on the front of your bill.
My rateable value has gone up/gone down. Why has the amount I have to pay not increased/decreased as much as I was expecting?
Property values can change between each revaluation, so transitional arrangements are in place to help phase in the effects of these changes on ratepayers’ bills. Large rises are restricted so businesses are not suddenly asked to pay much larger amounts. This is offset by limiting the gains where businesses would pay significantly less.
Transitional arrangements limit the percentage your business rates bill can be increased or decreased each year following revaluation. The ‘transition’ will apply each year until the full amount is due. Where the increase/decrease is significant, transition may apply for up to 5 years.
We will automatically include ‘transition’ when we calculate your bill. It is shown on your bill as Transitional Relief (amount of reduction) or Transitional Premium (amount added on).
I think my rateable value is too high, what can I do?
If you think your rateable value is too high you can make an appeal through the Check, Challenge and Appeal process. Full details are available at https://www.gov.uk/guidance/how-to-check-your-rateable-value-is-correct
The description of my property includes ‘Premises’. What are the ‘Premises’ it refers to?
Many business properties have ‘and Premises’ after the main description of the property, i.e. "Shop and Premises" or "Office and Premises". The ‘…. and Premises’ refers to areas such as a storage area or a cloakroom facility used in connection with the business property and does not refer to any part of the property used for domestic living accommodation.
My bill says that I have Other Balances Due Not Covered By This Bill’ and shows an amount of £…..
You may still owe money for the current financial year, or for a previous financial year. If you pay by direct debit on the 15th or the 28th of the month you will see this message as the March payment has still to be collected from your bank. If you have made a payment in the last couple of days it may not be reflected on this bill but if you think your bill should be paid in full we can look into the matter for you.
My property is empty, why do I have to pay?
There are no rates payable for the first three months that a property is empty, or six months in the case of industrial property. If a property is still empty at the end of the three or six month period business rates at 100% of the basic occupied charge are payable. If your property has been empty for longer than 3 months (6 months for an industrial) you will have a charge to pay. Some properties are exempt when empty. Please see our website for further details.
How do I pay my Rates?
Details of how to pay your bill should be shown on the reverse of your bill.
I paid by direct debit last year – do I need to do anything?
No. As direct debit continues year on year, unless you or the bank cancel it, it should still be in place.
Do I pay by direct debit?
if you currently pay by direct debit your bill will show the message ***YOUR PAYMENT CHOICE IS DIRECT DEBIT***. Bills not set up for direct debit display the message **YOUR PAYMENT CHOICE IS CASH OR CHEQUE**.
What happens if I can’t pay?
If you cannot meet the instalments on your bill we can check your account to see if you are receiving any reliefs that you may be entitled to. If you pay your bill over 10 months we can now offer payment over 12 months. Depending on your circumstances we may be able to agree a repayment plan that fits in with your income and expenditure, however we are unable to agree to any repayment plan that would extend beyond the end of the financial year. If you fail to make payment we may instigate recovery proceedings which could result in a summons to court for non-payment. If this happens the remaining balance for the year becomes due and the cost of issuing the summons will be added to your account. At the court hearing we will ask the magistrates for a liability order and further costs will be added to your account. If payment is not received and no payment arrangement is made, then the Council will pass the debt to an enforcement agent for collection. This will result in further costs, and the enforcement agent may take control of your goods to be sold.
Is there any help available?
Small Business Rate Relief - you can get help through the Small Business Rate Relief scheme if you use one property and your property’s rateable value is less than £15,000.
If you qualify, and the rateable value of your property is less than £12,000, you will get 100% relief. If the rateable value of your property is between £12,001 and £14,999 the amount of relief available declines on a sliding scale.
If you have more than one property, you can still get small business rate relief if the rateable value of each of your other properties is less than £2,900 and the total value is less than £15,000. You would only get relief on the main property.
You can still apply for this relief for earlier financial years until 01.10.2018. If you are eligible you will receive the relief from the start of your liability, or the 1st April 2012, whichever is the earliest. Full details and an application form are available on our website.
Public House Relief - eligible occupied public houses with a rateable value of below £100,000 can receive up to £1,000 discount for the financial years 2017/2018 and 2018/2019.
Supporting Small Business Relief – this relief limits the increase in bills where the ratepayer lost small business rate relief following the 2017 Revaluation.
Local Discretionary Relief (Revaluation) – this relief is available to those ratepayers hardest hit by the Revaluation. The reduction last for 4 years to 31st March 2021.
There is no need to make an application for any of the above discretionary reliefs. If you qualify we will automatically award the relief and send you a revised bill. These reliefs are all subject to state aid compliance.
If you believe you are eligible for any of the above reliefs, and are not currently in receipt of the reduction, please contact us.