Small businesses fail to make most of relief

SMALL BUSINESSES ARE failing to claim more than £400m a year in business rate relief, according to a Chester based accountancy firm.

Small companies can claim the Small Business Rate Relief (SBRR) if the rateable value of their premises is below £120,000. Businesses that have a rateable value of up to £6,000 will pay no business rates until September 2012,

However, Mitchell Charlesworth accountants have said that many companies are paying too much tax due to the complex nature of the tax regime, poor finance skills, and a lack of knowledge about tax relief schemes.

"SBRR is a terrific tax break for recession stricken small firms," said Paul Durrance, one of the firm's partners. "However, many business owners are unaware of the tax break and historically hundreds of millions have been left unclaimed with the North West being one of the worst regions with only a quarter of eligible firms entering a claim.

"If you think you could qualify it is vital to contact your accountant urgently to ensure you do not miss out on a penny of cash you could save."