Date: 17 September 2008
On 1 April this year the Scottish Government launched the Small Business Bonus Scheme (SBBS), designed to cut tax rates for small businesses in Scotland.
In order to create an environment where small businesses can flourish and gain a competitive edge in the local economy, the SBBS - which replaces the old Small Business Rates Relief Scheme - aims to reduce the rates burden for businesses with properties of which the combined rateable value is £15,000 or less.
It is expected that in the first year, the scheme will result in savings of up to £75 million for Scottish businesses, rising to £165 million when the full discounts come into force in future years.
Jim Mather, Minister for Enterprise and Tourism, says: "The introduction on the new scheme…marked an important stage in the fulfillment of the Government's ambition to create a more successful country by increasing sustainable economic growth. Small businesses are the cornerstone of Scottish commerce. They help to grow our economy and sustain our local communities. Their viability and success contribute to the vibrancy and quality of life in Scotland, so the Government wants a business environment in Scotland that encourages more small business start-ups…"
The SBBS is an application-based scheme administered though your local council and you are required to apply to each local authority area in which your business has a property.
For more information, click here, or call the City of Edinburgh Council on 0131 200 2000 and ask for the Non-domestic Rates Section. For businesses outwith Edinburgh Council, contact your local authority.
Please note:
It has been drawn to our attention that some 'rating consultants' and advisers have been approaching businesses in Scotland offering to assist with the application process for the Small Business Bonus Scheme. In doing so, however, we understand that they are proposing to charge an excessive fee (allegedly up to 50%) of the Small Business Bonus relief awarded.
This effectively dilutes the Scottish Government's policy of providing vital support to Scotland's smallest businesses. The aim of the Small Business Bonus Scheme is to reduce the tax burden on Scotland's smallest businesses for which rates make the biggest difference. A copy of the leaflet on Small Business Bonus is available here
We would encourage businesses to approach their local council (non-domestic rates team) in the first instance for free and impartial advice and information on the application process for the Small Business Bonus Scheme. Information and application forms are also available electronically from local authority non -domestic rates pages within each of Scotland's 32 local authority websites. The application process itself is simple and straightforward.
Any business which receives an excessive quote from one of these advisers may wish to report the matter to the trading standards service in their local area. The contact details are available here.
