Your business rates 2016/17
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Message from Cllr Peter John, Leader of Southwark Council Southwark is a great place to do business and to work, but we want it to be even better. That’s why we have been working with businesses throughout the borough to make sure that Southwark is a place where you can thrive. A strong local economy helps businesses and our residents. Building a strong local economy means investing in our town centres and high streets, and ensuring that your businesses get all the benefits from being at the heart of London. The Council wants to work alongside you: responding to your needs and creating an environment where business can flourish. That’s why we have put business at the heart of our four year plan, and established a new Southwark Business Forum where we can make sure that your needs are heard. Already, we are supporting 5,000 local people into jobs and creating 2,000 new apprenticeships. We are improving the education and opportunities for our local residents so that local people have the skills and experiences that businesses need. Like our residents, businesses need good quality local services like clean streets and safe communities. We are continuing to invest in these services, improving our local economy and helping Southwark to thrive. Your business rates mean we can deliver even more so that Southwark is a great place to work, live and have fun.
Councillor Peter John OBE Leader of Southwark Council
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A guide to your business rates Local businesses contribute towards services provided by the council by paying business rates
How are business rates calculated?
Revaluation
The level of business rates is set by the government, not the council. The amount you pay is calculated by multiplying the rateable value of your property, which is set by the Valuation Office Agency (VOA), with a multiplier set by the government.
The VOA usually revalues properties in England and Wales every five years but this has been postponed with the next revaluation due to come into effect on 1 April 2017. Properties are revalued two years before their new ratings take effect. For the 2010 revaluation, properties were valued as at 1 April 2008.
If you occupy a property with a rateable value of less than £25,500 and are not in receipt of any mandatory rate reliefs, a lower multiplier will be used to calculate your bill. For 2016/17 the full multiplier is 49.7p per £1 of rateable value. The small business multiplier is 48.4p per £1 of rateable value. The rateable value represents the annual rental value of your property if it was offered on the open market on 1 April 2008. A full list of rateable values is available on the VOA website www.gov.uk/government/organisations/ valuation-office-agency which details how you can appeal if you think the rateable value of your property is wrong. You can also contact the VOA on 03000 501 501.
Small business rate relief
From 1 April 2011, occupied properties which have a rateable value of less than £25,500 and are not in receipt of any mandatory rate relief will have their business rates liability automatically calculated using the small business multiplier. You may be entitled to additional small business rate relief which could further reduce your charge if you occupy a single business premises only with a rateable value of up to £12,000. If your single premises has a rateable value of £6,000 or less you will be entitled to 100% small business rate relief and therefore pay no business rates for the 2016/17 financial year. If your premises has a rateable value between £6,000 and £12,000 you will
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A guide to your business rates continued be eligible for a further reduction in the amount payable, as well as your bill being calculated using the smaller multiplier. The government has introduced additional support to small businesses. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, the government has confirmed that they will be allowed to keep that relief for a period of 12 months. How can I pay my business rates?
Direct debit is the most convenient way to pay and allows you to pay on the 1st or 15th of the month. You can set up a direct debit online at www.southwark.gov.uk/brddform What if I don’t pay?
If you pay your business rates in instalments, we must receive each payment by the date stated on your bill, unless you pay by direct debit, in which case your payment is collected on the 1st or 15th of the month. If you don’t pay on time, you will be sent a reminder notice and could receive a court summons and have to pay costs. You can avoid the risk of forgetting a payment by signing up for direct debit. If you are having difficulty paying your
business rates, please contact us for advice on 020 7525 5505. Empty properties
Properties that are empty are exempt from rates for up to three months (six months if the property is a qualifying industrial hereditament). After this date the full charge is payable unless it qualifies for one of the following exemptions: n Empty property held by a charity and that will be used for charitable purposes when next used n Empty property where the rateable value is under ÂŁ2,600 n Empty property that is held by a community amateur sports club and appears that it will next be used for these purposes n Empty property where occupation is prohibited by law n Empty listed buildings n Empty property where the owner is entitled to possession only in his capacity as personal representative of a deceased person n Empty properties which are the responsibility of liquidators, bankrupt individuals, trustees in bankruptcy and companies in administration.
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A guide to your business rates continued What will this mean for my rates liability?
Since 1 April 2008, most qualifying hereditaments that have been empty for more than three months or, in the case of qualifying industrial hereditaments for more than six months, will no longer receive relief from rates. Charitable rate relief
Charities are eligible for an 80% reduction on their business rates for properties used wholly or mainly for charitable purposes. Rate relief may also be granted to other organisations not established or conducted for profit. Discretionary rate relief may also be awarded to charities and organisations not established or conducted for profit that make a major contribution to the wellbeing of Southwark residents. To apply for charitable rate relief you can apply online at: www.southwark.gov.uk/mandatoryrelief
For further information or advice regarding business rates, please visit: www.southwark.gov.uk/businessrates Email: businessrates@southwark.gov.uk Telephone: 020 7525 5505 By post: Southwark Council Revenues and Benefits PO BOX 68763 London SE1P 4DJ
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The council’s finances Southwark Council’s income and expenditure
The table below explains our budget. From 2013/14 Southwark has been funded in a new way and we are now allowed to keep some of the business rates we collect. This will be added to by the government through a business rates top up and revenue support grant. Schools are funded through the dedicated schools grant.
Business support services Other key information
At 31 March 2016, the council’s uncommitted reserves are estimated to be£18.2m, investments are estimated to be £200m and it's borrowing to be £469m. Southwark Council employs approximately 4,700 staff.
Children’s service Adult social care Traffic, transport and parking Highways Planning and economic development Recreation and tourism Libraries Environmental health Refuse collection and disposal Revenue and benefits Other services Total spending on services Contribution from / to balances and earmarked reserves Southwark's budget requirement Retained business rates, top up and revenue support grant Shortfall / (surplus) from previous year Southwark's council tax requirement Divided by council tax base Which equals Southwark’s band D council tax GLA tax requirement Divided by council tax base Which equals band D council tax Total band D council tax
Southwark Council is committed to supporting businesses in the borough. Whether you're looking to set up, or are an established business looking for support, we can help. We can offer advice and guidance on a range of statutory services such as planning, building control, licensing and environmental health and can provide a number of direct services to help support your business. For more information please visit: www.southwark.gov.uk/business Southwark Works
Free recruitment support is available through Southwark Works. They can fill your vacancies with committed, enthusiastic and motivated staff. For more information visit: www.southwark.gov.uk/southwarkworks
2016/17 2016/17 Expenditure £m Income £m
2015/16 Net Budget £m 103.9 80.7 8.9 17.3 9.8 12.0 7.5 4.7 29.7 8.0 6.9 289.4 (6.2) 283.2 (200.3) (2.9) 80.0 87,727 912.14 25.9 87,727 295.00 1,207.14
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311.9 111.7 23.6 22.8 19.8 14.3 8.1 8.3 55.4 235.5 162.0 973.4
(214.8) (36.0) (14.8) (5.6) (11.0) (2.6) (0.6) (3.8) (25.4) (227.1) (154.1) (695.8)
2016/17 Net Budget £m 97.1 75.7 8.8 17.2 8.8 11.7 7.5 4.5 30.0 8.4 7.9 277.6 (6.2) 271.4 (184.1) (2.4) 84.9 91,231 930.38 25.2 91,231 276.00 1,206.38
Building control
requires approval or registration, this For advice on development control and must be done before trading starts. Further advice and information can be to ensure that all work involving buildings meets the requirements of the obtained by contacting the food safety team. building regulations. food@southwark.gov.uk building.control@southwark.gov.uk www.southwark.gov.uk/planning Business continuity
Whether it’s a fire, flood or power failure, a business continuity plan helps you continue through disruption. emergency.planning@southwark.gov.uk www.southwark.gov.uk/businesscontinuity Food safety
The food safety team is responsible for ensuring food businesses in Southwark comply with food law requirements. Whether the business
Health and safety
Every business has a legal duty to ensure the health, safety and welfare of their employees and others under the Health and Safety at Work Act 1974. ohs@southwark.gov.uk www.hse.gov.uk Licensing
Do you need a licence to run your business? Get in touch to find out. licensing@southwark.gov.uk www.southwark.gov.uk/licensing
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Business support services continued
Crossrail business rates supplement
Parking
The Greater London Authority (GLA) introduced a business rate supplement (BRS) in April 2010 to finance £4.1 billion of the costs of the £14.5 billion Crossrail project.
Businesses operating from an address within Southwark’s controlled parking zones need to buy permits for vehicles essential to their business. parking@southwark.gov.uk www.southwark.gov.uk/parking
local companies are communicated as well as helping to stimulate the local economy. Membership is open to all Southwark companies. admin@southwarkcommerce.com www.southwarkcommerce.com Street trading
Property
Starting up in Southwark or looking for larger premises? If you are looking to lease commercial property, please contact us. lettings@southwark.gov.uk www.southwark.gov.uk/property
Contact the street trading team to register as a trader and rent a stall at one of Southwark’s several thriving markets. streettrading@southwark.gov.uk www.southwark.gov.uk/streettrading Trading standards
Small business rate relief
If you run a small business you may be entitled to small business rate relief. businessrates@southwark.gov.uk www.southwark.gov.uk/businessrates Southwark Chamber of Commerce
Southwark Chamber of Commerce is working in partnership with Southwark Council. Their activities include organising meetings to encourage networking and business opportunities, producing a regular newsletter, working with the council to ensure that the important issues for
Trading standards can help with advice on regulatory legislation such as underage sales, product safety, fair trading, weights and measures and anti-counterfeiting. (For consumer related advice contact Citizens Advice on 0345 0405056) tradingstandards@southwark.gov.uk www.southwark.gov.uk/tradingstandards
What is Crossrail and how will it benefit your business?
Crossrail will connect the outer suburbs and Heathrow to the West End, City and Canary Wharf. It is pivotal to the future of London’s economy and the increased earnings – from new jobs and quicker journeys – will benefit businesses across London. It is the single largest investment in London’s infrastructure for decades, employing up to 14,000 people at the peak of construction. Crossrail services are due to start on the Shenfield to Liverpool Street section in 2017 and through central London in 2018, followed by a phased introduction of services on the rest of the route. To find out more, visit www.crossrail.co.uk, call the Crossrail 24 hr Helpdesk on 0345 602 3813 or email helpdesk@crossrail.co.uk Developments in the construction and financing of Crossrail
The Mayor of London agreed a settlement with the government in October 2010 for the Crossrail route and secured investment for the upgrade of the Tube. Crossrail is now under construction at its key sites across London.
In April 2012 the Mayor introduced a community infrastructure planning (CIL) levy on new developments in London to finance Crossrail. This is paid for by the developer. Find out more at www.london.gov.uk How will London’s businesses help fund Crossrail?
The Crossrail BRS has been used to finance £4.1 billion of the costs of the project. Of this around £3.3 billion has been borrowed with the remaining £0.8 billion being funded directly using BRS revenues. The Crossrail BRS will need to be levied until the GLA’s borrowing is repaid which is expected to be some time in the 2030s. Does my business have to pay the Crossrail BRS?
Your rates bill makes clear if you are liable to pay the BRS. The Crossrail BRS is applied only to assessments (for example business and other nondomestic premises) on the local rating lists of the 32 London boroughs and City of London Corporation with a rateable value of more than £55,000. Over 80 per cent of non domestic properties in London are therefore exempt.
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Crossrail business rates supplement continued How much do I pay if my property’s rateable value is above £55,000?
The Crossrail BRS multiplier for 201617 is 2p per pound of rateable value. Reliefs for the Crossrail BRS will apply on the same basis and at the same percentage rate as for your National Non Domestic Rates (NNDR) bill, although no transitional relief is provided for the BRS. Keeping you up to date
We will provide an annual update for ratepayers over the lifetime of the BRS. Contact for more information
020 7983 4100 crossrail-brs@london.gov.uk www.london.gov.uk/crossrail-brs Finance GLA City Hall London SE1 2AA
The text on pages 9 and 10 has not been written by Southwark Council and the views in it should not be taken as representing those of the council.
MySouthwark MyBusiness Rates 2016/17 www.southwark.gov.uk/mysouthwark View your business rates bills and account details online from any device at anytime
Southwark employer? Southwark employer? Need more staff? Need more staff? Want to help a young person thrive? If you think you can cultivate potential in someone who’s had a challenging start in life then SEEDS has a business proposition you won’t want to turn down. Give a job to a young local person who has struggled to find their place in the job market and we will pay up to 50% of their salary. For more information on eligibility and how SEEDS can help your business bloom visit www.southwark.gov.uk/sowandgrow