In this blog we’re diving into a topic that touches the wallets of every business owner with a brick-and-mortar presence: the ins and outs of business rates for the 2024/25 financial year, plus a crucial update on empty property relief that you won’t want to miss. Let’s break it down into digestible chunks, shall we?

Understanding Business Rates

Business rates are the commercial world’s equivalent of council tax, calculated for non-domestic properties. The amount you owe is figured by applying a multiplier to your property’s rateable value, but before you fret about the maths, remember, there’s a silver lining in the form of various reliefs that might reduce or even wipe your bill clean.

The Tale of Two Multipliers

There are two key players in the business rates game: the small business multiplier and the standard multiplier. If your property’s rateable value is under £15,000, you’re in the small business camp. Over that threshold, and the standard multiplier’s rules apply. For 2024/25, the small business multiplier is set at 49.9p in the pound, and the standard sits a bit higher at 54.6p, with the City of London adding its own twist with a supplement.

Small Business Rate Relief: A Lifeline

Here’s a bit of good news: small business rate relief. If your property’s rateable value is £15,000 or less, you could see your bill significantly reduced or even eliminated – completely free of rates for values up to £12,000, and then a sliding scale of relief up to £15,000. Every penny counts, right?

Easing into Changes: Transitional Relief

To prevent business rate shock from revaluations, transitional relief eases you into any increases. For 2024/25, there are caps based on your property’s rateable value, ensuring any rise in your bill is more of a gentle climb than a steep hike.

Spotlight on Empty Properties

Got an empty property? There’s a three-month grace period where you won’t owe business rates, giving you a breather while you find a tenant or a buyer. However, there’s a twist in the tale for 2024/25; following a consultation aimed at preventing abuse of the system, the “reset period” for claiming empty property relief after a short occupation extends to 13 weeks. No more “box shifting” – if you benefit from this relief, your property needs to be occupied for at least 13 weeks before you can claim it again.

Other Reliefs to Explore

Don’t forget, there are a myriad of other reliefs tailored to specific situations. It’s always worth checking out the website or, better yet, having a chat with your friendly accountant to explore what savings you might be eligible for.

Here to Help

Feeling overwhelmed? Curious about how these changes might affect your business? Don’t fret – Jon and the team at Jon Davies Accountants are here to turn these complex updates into opportunities for your business. Whether you’re aiming to minimise your outgoings or strategise for the future, we’ve got the expertise to guide you through.

Keen to dive deeper or discuss your specific circumstances? Reach out to Jon and our team for bespoke advice and support. Let’s ensure your business thrives in the ever-changing landscape of business rates and tax relief. Together, we can make this financial year your most efficient yet!

If you found this useful, please share it using the icons at the side of the page, or leave a comment below.

Any questions?

If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant