To help small businesses there are two main ways to help reduce business rate bills: using a lower multiplier to calculate the bill, and applying a discount to the bill depending on the rateable value. This help is called Small Business Rate Relief (SBRR).
Who can get SBRR
Where the rateable value of the property is £15,000 or less a business is eligible to claim a discount on their rates bill. To qualify for a discount, businesses must apply to Merton Council and confirm that:
- the sole or main property they occupy must have a rateable value of £15,000 or less and
- if they occupy any additional properties, each of the additional properties must have a rateable value of less than £2,900, and the total rateable value of all of their properties must be less than £28,000.
For businesses with a rateable value of between £15,001 and £50,999 will have their bill calculated on the basis of the small business rate multiplier.
Small Business Rates Relief extension
Relief can continue for another year if you occupy an additional property instead of being lost as normal. We will automatically calculate the relief where there is a continued entitlement.
How the SBRR discount is calculated
Ratepayers who qualify for SBRR discount, will get the following reductions in their business rates bill.
| Rateable value (RV) | Max SBRR | Min SBRR | Sliding scale |
|---|---|---|---|
| up to £12,000 | 100% | 100% | n/a |
| £12,001 to £15,000 | 100% | 0% | 100% minus 1% for every £30 of RV above £12,000 |
This calculation is for guidance only – please ensure you take independent advice before committing to a lease or other rental agreement on any property.
Before 1 April 2017
Before 1 April 2017, relief was applicable as follows:
- Rateable value up to £6,000 - no rates payable
- Rateable value between £6,001 and £12,000 - tapered relief between 100% and 0%
- Rateable value between £12,001 and £25,499 - Small Business Rate multiplier applies
Eligible ratepayers will receive relief at 100 per cent on properties with rateable values of not more than £6,000 with a tapered relief of between 100 per cent and 0 per cent for properties with rateable values between £6,001 and £12,000.
The changes are summarised below. From 1 October 2010 to 31 March 2017:
| Rateable value (RV) | Max SBRR | Min SBRR | Sliding scale |
|---|---|---|---|
| up to £6000 | 100% | 100% | n/a |
| £6001 to £12,000 | 100% | 0% | 100% minus 2% for every £120 of RV above £6000 |
How other reliefs affect SBRR
Where a property is eligible for charitable relief and small business relief, charitable relief only will apply. Any transitional relief will be applied before any small business rate relief is applied.
How to apply
You need only apply once for SBRR. Providing certain defined circumstances do not change you will not be required to make a further application.
The relief can be granted from the date the property enters the Rating List anytime throughout the year, you can apply for the relief immediately and do not have to wait until the next financial year to apply.
Changes to the application of small business rate relief from 1 April 2017
If you are already receiving small business rate relief, you will no longer be required to re-apply for SBRR for the 2017 revaluation and you will continue to receive the small business rate relief.
If you are no longer entitled to the relief, please notify the business rates section immediately.
We will automatically adjust the amount of the relief if the rateable value of your business premises reduces or rises following the revaluation.
To apply for Small Business Rate Relief please download a small business rates relief application or contact the Business Rates Section.
Reporting changes
You must tell Merton Council's Business Rate section if certain circumstances change The changes that you must tell us about are:
- taking up occupation of a property they did not occupy at the time of making their application for relief,
- an increase in the rateable value of a property occupied by you in another local authority.
If you take up occupation of an additional property that was not included in your original application, you must send a new small business rates relief application.
If there is an increase in the rateable value, you must contact us and give us notice, in writing.
You must report these changes to Merton Business Rates Team, within four weeks from the day after change take place. If this happens, there will be no interruption to your entitlement to the relief.
Other changes will be picked up by Merton Council's Business Rate Team from other sources.
Related website
Business Rates Reliefs (GOV.UK website)
Contact us
Business Rates Team
Merton Civic Centre
London Road
Morden
SM4 5DX
Email:Business.Rates@merton.gov.uk
Telephone: 020 8545 3919
We are no longer able to attend to personal visitors at the Civic Centre. You can email us anytime or telephone between 9am and 5pm.