Small Business Bonus Scheme
This life matters topic aims to highlight the benefits of the Small Business Bonus Scheme to the remaining businesses yet to apply.
Here are some Q and A's to aid understanding
Why has the Scottish Government introduced the Small Business Bonus Scheme?
The Scottish Government is committed to creating an environment in which small businesses in Scotland can flourish, underpinned by a fair taxation system.
Small businesses sit at the heart of our local economies, and the Scottish Government is determined to help them gain a competitive advantage. There is evidence that
rates account for a higher proportion of overheads of small businesses than they do for larger businesses. The Small Business Bonus aims to target additional help at
genuinely small businesses.
What Small Business Bonus relief is available?
The Small Business Bonus Scheme has, from 1 April 2008, progressively reduced the rates burden for businesses with properties of which the combined rateable value is
£15,000 or less. The Scheme will be delivered in full by April 2009. Relief rates from 2009-10 onwards are set out below and the level of relief for each business
will depend on:
(i) the combined rateable value of all properties in Scotland of which the business is in rateable occupation or (if vacant) which the business is entitled to
occupy;
(ii) whether or not each property is eligible for one of the existing rates relief schemes; and
(iii) the level of other public sector assistance received by the business.
Do I need to apply for the Small Business Bonus Scheme?
Yes. The Small Business Bonus is an application-based scheme – you will have to apply to each local authority in which your business has a property.
If I currently receive Small Business Bonus relief, will I need to apply for future years?
No. Provided your circumstances haven't changed and your local authority holds all the information it needs about your business property (or properties), you won't
need to
re-apply for relief under the Small Business Bonus Scheme every year.
Local authorities may carry out a review periodically to ensure that the information held about your business properties is complete, accurate and up-to-date. Relief
can only be awarded for a maximum period of 5 years without a review being undertaken.
What if my business has more than one property?
If your business has a number of small properties (whether occupied or not), then their rateable value will be combined in order to determine the percentage relief
available to you under the Small Business Bonus Scheme. If their combined rateable value exceeds £15,000, then you won't qualify for the Small Business Bonus
Scheme, as the new Scheme has been designed to target relief at the smallest businesses.
What if I already receive other rates reliefs?
If you are already in receipt of one of the other nondiscretionary (mandatory) rates reliefs (or discretionary relief for not-for-profit recreation clubs), then that
relief will be deducted from the notional amount of Small Business Bonus available.
This means that you will receive relief up to the level of whichever relief scheme awards the higher amount,i.e. whichever is the greater of...
a. existing rates relief under other schemes; and
b. relief under the Small Business Bonus Scheme. Relief under the Small Business Bonus Scheme does not affect your eligibility for other discretionary rates reliefs,
such as the discretionary element of charitable relief, rural relief; and hardship relief, which will be applied after all nondiscretionary reliefs.
Who pays for the Small Business Bonus?
The additional cost of the Small Business Bonus will be met by the Scottish Government. Larger businesses will continue to make a small contribution towards the cost
of the Scheme
by a modest supplement on the rate poundage for all subjects with a rateable value above £29,000. In 2009-10 this supplement will be 0.4p on rate poundage of 48.1p.
2 The other rates reliefs which will be taken into consideration are:
empty property relief; rural rate relief; derating allowance (stud farms); charitable rate relief; disabled persons rate relief; and discretionary relief for not-for-profit recreation clubs.
For more information you can check the web pages of the Scottish Government on www.scotland.gov.uk/sbbs
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Comments
i have just read the part about the owrkinh from home , i run mine form home so if i called the council to claim part of my property for business use would it actully be worhtwhile , i live in south ayrshire paying a band b council taxgilly
The Bonus Scheme offers relief on non-domestic (business) rates of up to 100% to eligible businesses which occupy premises with a rateable value of up to £15,000.You can download a leaflet from our website by using the following link. The leaflet explains the eligibility criteria for the scheme.
http://www.scotland.gov.uk/sbbs
We cannot comment on your individual eligibility, but to qualify for the Bonus Scheme you must be paying business rates.
If you operate your business from your home and pay only council tax you will not be eligible, although you can apply to have a portion of your home assigned as liable for business rates and you may then be eligible for the Bonus scheme on that amount. You would retain liability for council tax for the rest of the property (although your property's valuation band may change).
If you already pay business rates on a portion of your home (or wish to have your home designated as outlined above) I would encourage you to contact your local authority as they have responsibility for the administration of the Bonus Scheme.
The above link also has contact details for your individual local authority - when calling please ask to speak to the non-domestic rates or revenue section.
We hope this is helpful to you and wish you all the best with your business.
Administrators' Response
Would i be eligible for any small bonus as i work from home ?John Orr