As stories about business rates are hitting the headlines, what might the changes mean to you and your club?
What are Business Rates?
Business rates are effectively taxes on non-domestic premises payable by organisations, including sports clubs, on the property that they occupy. For example, if you own or lease a clubhouse, you can expect to receive a business rates bill from your local authority.
Business rates are calculated by multiplying a property’s rateable value by a multiplier. If your rateable value is changing dramatically as a result of the 2017 revaluation, transitional relief might also be a feature of your forthcoming rates bill.
A property’s rateable value is an estimate of how much it would cost to rent, based on factors such as its size and location. Rateable values for properties in England, Scotland and Wales were last set in 2010 and remain static for a number of years, unless you choose to report changes to your property or local area.
Multipliers are set by central government on an annual basis and increased depending on the level of inflation. There is currently a standard multiplier and a lower one for Small Businesses. You can check if you are eligible as a Small Business by getting in touch with your local council.
There is relief available on business rates for CASC (Community Amateur Sports Clubs) and charities, if the property is used for charitable purposes, and for Small Businesses. Find out more about this below.
So, what’s changing?
From 1st April 2017, a revaluation of the rateable values of properties in England, Scotland and Wales will come into effect. This basically means that a review has taken place tot all rateable values in line with the property market. Multipliers will also be revised, which means a change in your rateable value may not always mean a change in your business rates bill.
Whilst you can check the draft valuation for the property you occupy to help you estimate your 2017-2018 bill it’s likely that your local authority has or will shortly send it to you. It is recommended that you firstly, check it against last year’s bill and if you think your property’s rateable value is incorrect, you can contact the Valuation Office Agency (VOA).
Another change is that the current threshold to be eligible for Small Business rates relief is doubling. Small businesses (who only occupy one property) are eligible to pay no rates if their rateable value is £12,000 or less. Find out more about business rates relief and how to apply below.
Business Rates Relief
If your sports club is a registered CASC (Community Amateur Sports Club) or charity, you can apply for business rates relief of 80%. On top of this there could be a discretionary relief available, of up to 100%. This discretionary relief will depend upon your Local Authority. If you are unsure about your rates bill or you want to apply for the relief, get in touch with your local council.
Small Businesses are also eligible for rates relief. Again, if you want to check whether you are eligible as a Small Business or to apply for the relief, get in touch with your local council.