23 March 2015
The Treasury has announced a wide-ranging review of national business rates, paving the way for big changes to how businesses in England pay the tax. The NHBF has long been calling for changes to the outdated system we currently have and this review is a step in the right direction, although there is still have a long way to go.
NHBF president Paul Curry said,
“The review is good news, but it will not be reporting back until the Budget in 2016. So it’s important that salons make the most of the increased reliefs available to them from 1 April 2015.”
The key changes to reliefs from 1 April 2015 are:
- An increased business rates discount for smaller retail premises with a rateable value of £50,000 or less to £1500 until 31 March 2016, which the governments says will benefit around 300,000 high street businesses
- The small business rate relief has been doubled for a further year until 31 March 2016, which should mean 385,000 businesses will pay no rates at all
- The rise in the business rates multiplier has been capped to 2%
- There is also transitional rate relief which affects businesses whose property value has changed significantly.
- Salon owners need to check with their local council if they are entitled to reliefs.
NHBF chief executive Hilary Hall said,
“We still have a long time to wait until the archaic, unfair system of business rates which is currently calculated on the value of a physical shop or commercial property is changed. But we’re very pleased that the government has listened to our campaign calling for fundamental reform.”