Small Business Rates Relief: What You Need To Know

Nobody ever said that opening a small business would be easy. Of course, if it works out, running your own business is incredibly rewarding. But getting there can be challenging. 

Fortunately, small business rates relief in the form of business grants can help. If you know how to use business grants and how to apply for one, it becomes a little easier to get your business off the ground. 

Even existing small businesses can benefit from business rates relief if they find themselves light on funds. Let’s go over what you need to know about small business relief to make your idea a reality. 

What Is A Small Business Grant?

When small businesses need money, their first instinct is usually to take out a loan. However, a small business grant works differently and is usually preferable because they don’t have to be paid back. 

These grants can take many forms, such as the following:

• It can be a one-time payment to help a new business get started.
• It can provide an infusion of cash to a small business in need.
• It can provide regular payments to a business to help ensure that they never run short on cash. 

Of course, small business rates relief isn’t always that simple, and requires meticulous planning to get right, depending on your specific business needs.

Scenarios Where Small Business Grants Are Needed

The first thing to keep in mind is that a small business needs to have a plan for how they’ll use the money they receive in a grant. In some cases, business grants are given for a specific purpose. Here are some of the purposes business grants can fulfill:

• Some grants can help a business pay their utility bills.
• Some are designed specifically for hiring and onboarding workers, typically local workers. 
• Some are designed for businesses at a certain stage. For instance, some grants are specific for startups, while others are for slightly older companies that are attempting to scale their operations.
• More recently, the UK government has created business grants related to the COVID-19 pandemic. These grants are for businesses that have endured tough times because of the pandemic and need assistance staying afloat. 
• There are more general business grants available that allow businesses to use the money however they please, as long as it’s put toward something business-related.

But how exactly does one put the wheels in motion to get the business grant process started? We’ve got you covered.

How Do I Apply?

Regardless of your industry, business stage or even your gender, it’s important to figure out what type of relief is right for your business before applying for small business rates relief. Keep in mind that some grants have specific purposes, meaning they will have specific eligibility requirements. 

Whether you’re starting a retail business or a security guard company, the first step is contacting the grant awards body to help determine what grants are appropriate for your business. The body can also help to give you an idea of how realistic your chances are of receiving a grant.

If you’ve found a grant that fits your business needs, make sure you read the grant objectives closely; this will tell you how the grant will be awarded and the parameters for how the money should be used. 

Knowing this will be critical when sharing your business plan, which is the next step of the application process. 

More established businesses will have to provide a profit and loss (P&L) statement as part of their business plan. Meanwhile, new businesses need to share a detailed business plan that includes evidence that the business will be viable and have a good chance to succeed.

Also, the business plan should focus on why you need money from the grant based on the grant’s specific purpose. This requires referring back to the grant objective and how it fits the specific needs of your small business. 

For a deeper dive, check out our template on how to create an effective business plan from start to finish.

Part of the point of submitting a business plan with the application is to show how receiving money from the grant will help your business grow while also helping others, such as your employees or nearby businesses that could benefit from your success.

When seeking small business rates relief, always remember that the devil is in the details. Here are some important details to look out for:

• The more specific you can be about how the grant money will help your business, the better your chances. 
• The more information you can show about the history of your business (business bank account activity, for example) or projections for the future, the better. 
• Make sure that the amount of money you’re seeking is the same as the money available from the grant. Those types of details can matter when seeking small business rates relief. 

Finally, always try to apply as soon as possible after a grant becomes available. There isn’t always a lot of money available, so the sooner you can apply, the less competition there will be for the grant you want.

What Is Small Business Rates Relief?

In addition to receiving a small business grant, some small businesses in the UK are eligible to receive small business rates relief. 

This assists small businesses by reducing the rates they are charged on their property. The idea is to give smaller businesses a break so that they have more money to put toward hiring employees and other business needs. 

It may not be the same as receiving a formal grant, although small business rates relief can make a big difference in some cases.

However, the company’s property needs to meet certain criteria and has different rules in each county in the UK. 

How Am I Eligible For Small Business Rates Relief (UK)?

Eligibility for small business rates relief (UK) has to fulfill the following criteria:

• The businesses can only own one property.
• This property must have a rateable value of under £15,000. If that value is under £12,000, the company will not have to pay any business rates. 
• For properties between £12,000 and £15,000, there is a sliding scale to determine what percentage of normal business rates must be paid. 
• In some cases, exceptions are made for businesses with more than one property but only under special circumstances.

What Is Rateable Value?

The rateable value of a commercial property is an estimate of what that property would be worth on the open market. The Valuation Office Agency makes those calculations every five years, with the most recent one being released in 2017. 

The rateable value given to a business property at that time determines the business rates charged and whether or not that business is eligible for small business rates relief in the UK. 

If business owners suspect a mistake or inaccuracy, they can check their rateable value with the VOA to make sure that their rateable value and business rates are accurate and appropriate.

Technology Is Key When You’re Up & Running – Connecteam

If you’re able to obtain small business rates relief and get your new business off the ground, the next step is to make sure that the business stays afloat. Whether running a restaurant or a trucking company, The best way to ensure this is with the right technology and tools. 

No matter the industry or scale of your business, software like Connecteam can help make sure that your business has the right alignment and that every employee is on the same page.

Connecteam is an award-winning all-in-one app designed especially for the mobile workforce – including deskless workers and remote teams. 

Tens of thousands of small businesses use Connecteam’s multi-featured capabilities to automate and streamline a variety of otherwise time-consuming tasks. 

All work processes are made simple, from creating a schedule for employees to tracking the hours that they work. 

Connecteam can also help with onboarding and training, not to mention managing tasks once employees are up to speed on everything. 

These work processes can be easily done all from the comfort of your mobile phone, instead of having to resort to manual methods like pen and paper and spreadsheets. 

And what’s more is that Connecteam is free to use, and is regularly rated one of the best free digital business tools.

The Bottom Line On Small Business Rates Relief

Now that you understand what small business rates relief is, as well as small business grants, you should have the knowledge in place to give your small business the best chance to succeed from day one. 

And that’s not all. You also now know how to apply for such a grant, and are well aware of the criteria your business requires to be eligible.

Once you have followed these steps and gotten your business up and running, it’s essential to plan for the long road ahead. 

An all-in-one small business tool like Connecteam can keep all work-related matters on one platform, helping with communication, saving time, and making your business easier to maintain. 

That means you’ll be better positioned to turn that small business rates relief into small business success.