Business Rates Relief

10th September 2013

Higher Business Rates for Not for Profit Organisations within East Cambs District.
Since March 2012, East Cambridgeshire District Council (ECDC) has been reviewing it’s policy on granting Discretionary Relief on business rates to give assistance to charitable and not for profit organisations that may have difficulty in paying their rates and are of benefit to the local community, such as village halls. ECDC decided that the previous policy of granting 20% discretionary relief, either to top up the 80% mandatory relief, or to give discretionary relief alone, was too generous to certain organisations who did not really need this assistance:

As a result of this review, it was decided that from the 13-14 financial year onwards, discretionary rates relief (capped at £2,000 pa) would only be granted if the following criteria applied:

  1. No restrictive membership practices.
  2. Evidence of support for disadvantaged groups where the applicant is a community organisation.
  3. Facilities/services must demonstrate benefit to local people/redistribution of majority funding to local communities.
  4. Bar provision in facilities should be an ancillary service (less than 50% of income).
  5. Unrestricted reserves should not exceed £100,000.
  6. Average Annual surpluses (based on the two most recent sets of accounts) should not exceed £26,000.
  7. Various other eligibility criteria must also apply for the application to be eligible.

Local not for profit organisations will now need to review their constitution, surplus retention and a accounting policies to make sure they minimise their future exposure to this local tax.



 
Other items in Blogs
 
Lucy Bayliss
11th April 2019 £10 a day from the 1st May!

If you submitted your tax return after the filing deadline of 31 January, or you still have not submitted your tax return, then you will automatically be fined £100 for missing the deadline.   In February, HMRC announced that they would be delaying issuing the late filing penalty notices due to Brexit. They have now…

Read More »

Matilda Mawson
10th April 2019 Has your claim for marriage allowance transfer been refused?

  HMRC have recently attempted to remove a marriage allowance transfer for a couple, where the transferor had less than the 10% personal allowance unused. This treatment is incorrect as outlined below:   Background to the transfer The marriage allowance transfer was introduced from 5 April 2015 onwards and allows a person to transfer 10%…

Read More »

Lisa Smith
9th April 2019 Digital Records for VAT – HMRC Guidance published

  From 1 April 2019, most businesses with a taxable turnover above £85,000 are required to follow the rules for Making Tax Digital for VAT.  As a result, HMRC has published new guidance on record keeping, which  explains what records a business needs to keep digitally if it has signed up for Making Tax Digital…

Read More »

Ian Piper
9th April 2019 R&D Tax Relief: HMRC Try to Tackle Abuse

  Many companies, not just those in the tech industry, will have benefitted from the generosity of R&D tax relief. Eligible R&D expenditure can be inflated by a notional 230% uplift, and a refund of tax claimed on tax that was never paid in the first place. Perhaps not unsurprisingly, HMRC have identified abuses of…

Read More »

Adrian Mackenzie
25th March 2019 When doing nothing is best

From time to time, stock markets go through periods of uncertainty. This could be down to some poor economic news or perhaps due to a political crisis.  The sharp falls that can be experienced at such times are understandably unsettling for investors. They can even tempt some to change their long-term plan by selling their…

Read More »

Thomas Carter
21st March 2019 Preparing for Brexit – Do you trade within the EU?

Your UK business may need an Economic Operator Registration and Identification (EORI) number if we leave the EU with no deal.   What is an EORI number?   An EORI number is a unique identifying number assigned to individual importers and exporters to track trade between the EU and non-EU countries. It’s used during Customs…

Read More »