Business rates – payment deferral
As readers may be aware, a 5% increase in business rates has taken effect from 1 April 2009. The increase followed an inflation spike of 5% in the retail price index last September being the time when the business rates are calculated for the following year.
The Government has acknowledged that this increase will have a negative impact on many businesses cash flow but has resisted public pressure to defer the increase. The new higher business rates must be paid at least until July when new regulations will come into effect. Thereafter businesses will be able to defer payment of 60% of the increase in their 2009-10 business rate bills until 2010-11 and 2011-12.