If you're running a small business, every pound counts. One cost that often causes confusion—and unnecessary expense—is business rates. The good news? You might not have to pay full rates at all. With small business rate relief, eligible businesses can reduce or eliminate their rate bill entirely. In this guide, we'll explain how business rates small business relief works, whether you're eligible, and how to apply—plus some tips to reduce business rates overall.
Small business rate relief (SBRR) is a government scheme designed to support small enterprises by reducing the burden of business rates. Depending on the size and rateable value of your property, you could receive up to 100% relief on your bill.
In England and Wales, relief rules are managed by local councils based on national guidance. In Northern Ireland, Land and Property Services (LPS) oversees relief. In Scotland, specific schemes like the Small Business Bonus Scheme apply.
The key question most owners ask: do I qualify for small business rate relief? The answer depends on your property’s rateable value and the number of properties your business occupies.
Your eligibility hinges on the business rates threshold. Rateable values over £15,000 typically make you ineligible for SBRR, though other reliefs might apply.
Small business rates are calculated by multiplying your property's rateable value by the ‘small business multiplier’. This is slightly lower than the standard multiplier used for larger businesses.
You can check your rateable value and multiplier via:
In most areas, small business relief is applied automatically if you’re eligible. However, it’s still wise to contact your council or LPS to confirm or apply manually. The process usually involves a short form and proof of occupancy.
If you believe you qualify but haven’t received relief, reach out to your local authority with your business rates account number and evidence of eligibility.
Rates relief for small businesses Scotland operates under the Small Business Bonus Scheme. If your business has a rateable value of:
Scottish businesses should apply through the local council with relevant property and business information.
You could save anywhere from a few hundred pounds to the full value of your annual business rates bill. For properties under £12,000, that’s 100% relief in England.
You're still eligible if the secondary properties each have a rateable value under £2,899 and your total combined RV remains under £20,000.
You may qualify for small business rate relief if your property has a rateable value of £15,000 or less and it’s your only or main property. Properties under £12,000 usually receive 100% relief.
Small business rate relief is one of the simplest ways to reduce your overheads. Whether you operate a new business, shop, office, or home-based workspace, it's worth checking if you qualify. From confirming your business rates threshold to navigating Scotland’s bonus schemes, being proactive can lead to real savings.
