New rates will benefit hospitality industry
A new government initiative means that nearly 300,000 eligible businesses in England will benefit from reduced business rates.
How the new rates effect you
These changes could mean that a bar, pub or restaurant with a rateable value of £10,000 could see savings of 30% or more when compared to last year’s business rate bill.
Other changes include:
- Businesses can now choose to spread their bill payments over 12 monthly instalments rather than 10, giving them greater control over cash flow.
- The new £1,000 business rates discount for restaurants and pubs is estimated at more than £272m of tax relief this year.
- Doubling the extension of the small business rate relief until 31 March 2015.
- There is now a 2% cap on business rate inflation increases.
Who is eligible?
Pubs with a rateable value of less than £50,000 are eligible for a discount under this new initiative.
Why the changes are important
The British Beer and Pub Association has long called for the Government to rectify the ‘disproportionate’ amount of tax drinking establishments pay in comparison to other high street vendors.
The changes have been introduced in an effort to reduce the declining high street and to support small businesses – and the hospitality industry specifically.
The Government is looking into longer-term administrative reform of business rates after 2017, hoping to make them fairer, while delivering stability to ratepayers.
These economic plans have been widely supported by the industry, but many are hoping for longer-term reforms that will make the system fairer, more efficient and more responsive to wider economic circumstances. These changes have gone some way in making it more viable for pubs, bars and other hospitality establishments to survive on the high street.
Supporting the hospitality and late night restaurant industry
We are a specialist in providing competitive insurance rates to nightclubs, bars and all manner of hospitality businesses.
To get in touch with us, phone us on 0844 488 9205 or use our contact form.