Business Rates 2015/16. Thank you for recycling more. We ve frozen Council Tax again. WiganCouncilOnline

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1 Business Rates 2015/16 Thank you for recycling more We ve frozen Council Tax again WiganCouncilOnline wigan.gov.uk

2 W I G A N 9 October 2015 Wigan Business Expo Twenty15 will give your business an opportunity to showcase your goods and services to hundreds of buyers from across the region. expo@wigan.gov.uk W O R K S

3 1 Foreword by the Deputy Leader of the Council, Cllr David Molyneux Welcome to this year s Business Rates information booklet. Wigan Borough s future is looking bright, thanks to a number of exciting projects and developments which will get underway this year. As part of Wigan Council s Deal for Business, 100m will be invested in the borough. From the redevelopment of two of the most iconic landmarks Wigan Pier and Haigh Hall Country Park - to major investment in our town centres and infrastructure projects 2015 promises to be the year of economic growth for the borough. We ve managed to freeze Council Tax for the second year running and car park charges to provide financial relief to residents and businesses. The Deal for Business includes a commitment to provide improved support to companies based in the borough. A new business engagement team, made up of six dedicated officers each tasked with supporting the business community, has recently been formed. The business engagement team can be contacted via at business@wigan.gov.uk For more information please visit Earlier this month, Wigan launched its digital strategy Go On Wigan - at the Greater Manchester Business Growth Hub Breakfast Series. We have committed 500,000 to support this. Through this strategy, we will work with local businesses to help them create their own website and explore the online marketing opportunities available to promote economic growth. In Leigh the guided busway is almost complete. This has been a controversial project, but local businesses have come out in support of the scheme recognising the economic value it will bring to the town. I believe we can build a better borough and look forward to the future with confidence. Thank you, Councillor David Molyneux Deputy Leader of Wigan Council

4 2 Business Rates 2015 / 2016 Non-Domestic Rating Explanation Non-Domestic Rates, or business rates, collected by local authorities are the way that those who occupy nondomestic property contribute towards the cost of local services. Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenues. The money, together with revenue from Council Tax payers, Revenue Support Grant provided by the government and certain other sums, is used to pay for the services provided by your local authorities in your area. Further information about the business rates system, including transitional and other reliefs, may be obtained at Rateable Value Apart from properties that are exempt from Business Rates, each nondomestic property has a rateable value which is set by the valuation officers of the Valuation Office Agency (VOA), of Her Majesty s Revenue and Customs. They draw up and maintain a full list of rateable values available on their website at The rateable value of your property is shown on your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date. For the revaluation that came into effect on 1 April 2010, this date was set as 1 April The valuation officer may alter the value if circumstances change. The ratepayer (and certain others who have an interest in property) can appeal against the value shown in the list if they believe it is wrong. The government has announced there will be limits on the backdating of changes to rating assessments with effect from 1st April If the Valuation Office Agency receive your appeal on or after 1st April 2015 then the earliest they can backdate any

5 3 changes is that date. Wigan Council can only backdate any business rates rebate to that same date. You will continue to have your full legal rights to appeal to your rating assessment. Further information about the grounds on which appeals may be made and the process for doing so can be found on the VOA website or from your local valuation office. National Non-Domestic Rating Multiplier We work out your business rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers; the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The former is higher to pay for small business rate relief. Except in the City of London (where special arrangements apply), the government sets the multipliers for each financial year for the whole of England according to formulae set by legislation. Generally, the multipliers increase in line with inflation according to the Retail Price Index in September of the preceding year. The government announced in the Autumn Statement 2014 that it will cap the RPI increase in business rates to 2% in Business Rates Instalments Payment of business rates bills is automatically set on a 10-monthly cycle. However, the government has put in place regulations to allow businesses to ask for their business rates bills to be spread over 12 months. If you wish to take up this offer, you should contact us as soon as possible. Revaluation 2017 All rateable values are reassessed at a general revaluation to ensure bills paid by any one ratepayer reflect changes over time in the value of their property relative to others. This helps maintain fairness in the rating system by updating valuations in line with changes in the market. The current rating list is based on the 2010 revaluation. The government has confirmed that the next revaluation will take place in 2017 based on

6 4 Business Rates / rental values at 1st April More information on revaluation 2017 can be found at: organisations/valuation-officeagency In the year of revaluation the multipliers are rebased to account for overall changes to total rateable value and to ensure that the revaluation does not raise extra money for government. Similarly, the change in the revaluation date to 2017 has no effect on the total amount of revenue raised from business rates. Unoccupied property rating Business rates will not be payable in the first three months that a property is empty. This is extended to six months in the case of certain industrial properties. After this period, rates are payable in full unless the unoccupied property rate has been reduced by the government by order. In most cases the unoccupied property rate is zero for properties owned by charities and community amateur sports clubs. In addition, there are a number of exemptions from the unoccupied property rate. Please ask us for full details of exemptions. If the unoccupied property rate for the financial year has been reduced by order, it will be shown on the front of your bill. The government has introduced a new temporary measure for unoccupied new builds from October Unoccupied new builds will be exempt from unoccupied property rates for up to 18 months (up to state aid limits) where the property comes on to the list between 1 October 2013 and 30 September The 18 month period includes the initial 3 or 6 month exemption and so properties may, if unoccupied, be exempt from non-domestic rates for up to an extra 15 or 12 months. Partly occupied property relief A ratepayer is liable for the full nondomestic rate whether a property is wholly occupied or only part occupied. Where a property is partly occupied for a short time, we have discretion in certain cases to award relief in respect of the unoccupied part. Please ask us for details.

7 5 Small Business Rate Relief Ratepayers who are not entitled to another mandatory relief or are liable for unoccupied property rates and occupy a property with a rateable value which does not exceed 17,999 outside London or 25,499 in London will have their bill calculated using the lower small business nondomestic rating multiplier, rather than the national non-domestic rating multiplier. In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed 12,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 50% for a property with a rateable value of not more than 6,000. However, until 31st March 2016, the government has doubled the usual level of relief. Generally, this percentage reduction (relief) is only available to ratepayers who occupy either: (a) one property, or (b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed 2,599. The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed 17,999 outside London or 25,499 in London on each day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase. 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. An application for small business rate relief is not required. Where a ratepayer meets the eligibility criteria and has not received the relief they should contact us. Provided the ratepayer continues to satisfy the conditions for relief which apply at the relevant time as regards the

8 6 Business Rates 2015 / 2016 property and the ratepayer, they will automatically continue to receive relief in each new valuation period. Certain changes in circumstances will need to be notified to us by a ratepayer who is in receipt of relief (other changes will be picked up by us). The changes which should be notified are: (a) the ratepayer taking up occupation of an additional property, and (b) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief. Charity and Community Amateur Sports Club (CASC) Relief Charities and registered CASCs are entitled to 80% relief where the property is occupied by the charity or the CASC, and this is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the CASC (or of that and other CASCs). We have discretion to give further relief on the remaining bill. Please ask us for details. Local Discounts We have a general power to grant discretionary local discounts. Please ask us for details. Retail Discounts The government is giving funding to local authorities so that they can provide a discount worth up to 1,000 in 2014/15 and up to 1,500 in 2015/16 to retail premises with a rateable value of up to 50,000. This will provide support to premises including pubs, cafes, restaurants and shops. Please ask us for more details. The government is also giving funding to local authorities so that they can provide a 50% discount for 18 months for those businesses that move into retail premises that have been empty for a year or more. This is available for businesses which move into empty premises between 1st April 2014 and 31st March Please ask us for more details. The award of such discounts is considered likely to amount to state aid.

9 7 However it will be state aid compliant where it is provided in accordance with the De Minimis Regulations (1407/2013). The De Minimis Regulations allow an undertaking to receive up to 200,000 de minimis aid over a rolling three year period. If you are receiving, or have received, any de minimis aid granted during the current or two previous financial years (from any source), you should inform us immediately with details of the aid received. Hardship relief and local discounts We have discretion to give relief in special circumstances. Please ask us for details. Rating advisers Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. Appeals against rateable values can be made free of charge. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS website - and the Institute and Revenues and Rating (IRRV website - are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating adviser, you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract. Information supplied with demand notices Information relating to the relevant and previous financial years in regard to the gross expenditure of the local authority is available at incomeandspending

10 8 Business Rates 2015 / 2016 How your data may be used Wigan Council has a legal obligation under the Data Protection Act to ensure personal data is collected and processed in a way which complies with the act. The business rates team will keep your information secure and confidential. Your data is used for the purpose of the assessment, administration, billing, collection and recovery of business rates. However, like all other councils, we have a duty to protect the public funds we administer and so, where the law requires or allows us, we may disclose your personal information for these or related purposes to other internal departments or to third parties. These may include bailiffs, tracing agents, debt collection agencies, courts, police, HM Revenue and Custom, the Audit Commission, the Valuation Office Agency and other local authorities. How to contact us Online: Phone: 8am to 6pm, Monday to Friday Business Rates businessrates@wigan.gov.uk Benefit Fraud line benefits@wigan.gov.uk Valuation Office Agency Complaints Institute of Revenues, Rating and Valuation Card payment line Pay a council bill

11 9 Business Support Wigan Borough offer a free and independent service to help you start, run or grow your business. The service is delivered by dedicated business engagement officers and is available to any business located in, or looking to relocate to, the borough. You can send an , give us a call or members of the team can meet with you at your own premises to help you identify and access the support you need from funding options, to becoming an approved council supplier, to new business start-up. For more information go to ASSOCIATE SPONSOR OF

12 10 Business Rates 2015 / 2016 Q&As with the business engagement team We asked the team to gives us an insight into what they can offer by answering some of the questions that they typically get asked. Between them they have many years of providing advice to businesses and social enterprises. Gina, what support can you offer in terms of grants, funding and financial advice? Wigan Council offers a free service to align initial business ideas to solutions and advice; including potential funding opportunities that are available to Wigan Borough businesses. Wigan has been successful over the years in securing over 100m of external funding to support the growth and prosperity of Wigan. The team will work with Greater Manchester partners to help businesses at each stage of the application process. It is a common misconception that funding is no longer available to support businesses, improve profitability and increase employment. Currently, there are several sources of funding available including: GM Investment Fund Access to Finance (NW) Jobs with Training and apprenticeship funding Bank loans backed by Government guarantee Regional Growth Fund If you have an immediate need for support to access funding then contact the business engagement team on or ero@wigan.gov.uk The sources, types and levels of funding are constantly changing and if you would like to be kept up to date with the latest developments then sign up for the business bulletins at: Gina Yates; phone: , g.yates@wigan.gov.uk

13 11 Emma, how do I get in touch and will you come out to see me? business@wigan.gov.uk, ring us on or visit businessengagement Your enquiry will be forwarded to a member of the business engagement team who will contact you directly to make an appointment to meet you at your premises. Or call us direct, each team member s details can be found in this section. Mine are; Emma Gaster; phone: , e.gaster@wigan.gov.uk Wendy, can you help me to market my business better? Marketing and communications through traditional and creative media are the foundations to helping a business succeed. We will support businesses to access free support to help them in promoting their businesses, developing marketing strategies and looking at new ways to do business. Wendy Coyle; phone: , w.coyle@wigan.gov.uk Janis, I need to find bigger and better premises, can you help? Wigan Council in partnership with Greater Manchester Growth Company offer a Property Finder service which is free of charge. The service provides a comprehensive list of commercial land and premises within the borough, covering both council owned and privately owned land and premises. Janis Maleedy; phone: , j.maleedy@wigan.gov.uk Jeremy, I want to move my business to Wigan, how can you help? We will work on a one-to-one basis offering advice on land and premises availability, potential investment opportunities, recruitment requirements and lots more. Wigan has a lot to offer and we are committed to improving economic opportunities to become a location of choice for investment. Jeremy Bell; phone: , j.bell@wigan.gov.uk Diane, I m starting a new business, is there any funding available? There is support available for new businesses. This may not always be in the form of grant assistance but through start up loans for eligible clients. Wigan Council works with partners across the borough to ensure that any new business receives oneto-one tailored support. If you are interested in starting a new business then contact one of the team who will be happy to help. Diane Wood; phone: , diane.wood@wigan.gov.uk

14 12 Business Rates 2015 / reasons why apprentices are good for business 1. Apprenticeship programmes (the training) can often be fully funded by the government, meaning that you as the employer only pay the apprentice s wages. 2. You could be entitled to a government funded AGE grant of 1,500 if you are a business with less than 50 employees and you recruit an apprentice aged 16 to 24 yrs. 3. You could also access a Wigan Council funded Business Apprenticeship Programme grant of between 3,000 and 5,000 if you are based in Wigan Borough or recruit a Wigan resident onto an apprenticeship, aged 16 to 24 and pay National Minimum Wage. Further eligibility criteria applies. For further details, go to or contact the skills and learning team. 4. From April 2016, employers will no longer be required to pay employer National Insurance contributions for apprentices under the age of 25 on earnings up to the upper earnings limit. 5. Businesses report an average increase in productivity by 214 a week when they hire apprentices % reported that apprenticeships improved their productivity or the quality of their product or service. 7. Nearly every employer that takes on an apprentice (96%) reports benefits to their business % of apprentices stay with the same employer. 9. Businesses that employ younger people as apprentices can not only reap the benefits detailed above, but they can also contribute towards corporate social responsibility targets. 10. Apprenticeships are estimated to contribute 34 billion to the UK economy in Employing an apprentice means that you are actively supporting the council s Deal for Business. The Deal is a new approach to the way the council operates in conjunction with local businesses.

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16 We can make the information in this booklet available in other formats and languages on request. Contact us at: Customer Services Wigan Council, PO Box 100, Wigan, WN1 3DS. Phone: Printed March 2015 PR-15-03