Are You Entitled to UK Charity Business Rate Relief?
We know charities and community organisations continually struggle to pay their overheads. It can feel like the bills are neverending. There is good news when it comes to business rates though. Business rates are local taxes levied on all non-residential properties and, thanks to national and government relief, charities, good causes and community groups can realise significant savings.
Do Charities Pay Business Rates?
The situation will vary depending on your individual circumstances however UK charity business rates relief is a government initiative aimed at greatly reducing business rates liability for charitable and community organisations. It alleviates the tax burden for good causes because the government recognises that charities, non-profit organisations and community groups play a crucial role in societal welfare. It can provide a reduction of up to 80% of business rates.
That’s not all. Local councils can top that up with additional ‘discretionary’ relief. It is possible you may not pay any business rates at all. Qualifying organisations can spend funds elsewhere to expand their outreach and enhance their impact on the communities they serve.
The first step in applying for business rates relief is to contact your local council. They will be able to check if you’re eligible, tell you how to get charitable rate relief and calculate any discretionary top-up relief entitlement. They’ll be able to give you general advice too.
How Does Business Rates Charity Relief Benefit Good Causes?
By reducing overhead costs, business rates charity relief serves as a welcome mechanism to bolster the activities of a charitable organisation. This relief initiative directly benefits good causes by alleviating the financial strain associated with business rates; allowing them to spend the money elsewhere. Charities and community groups dedicated to social welfare often operate from commercial premises on a High Street for example. The relief ensures they can work from these prime, accessible sites without having to grapple with commercial excessive overhead costs.
By granting reductions or complete exemptions from business rates, local and national tax relief programs enable charities to channel more funds into essential services, programs and initiatives. This, in turn, enhances their capacity to address social issues, support vulnerable populations and contribute meaningfully to community development. The ripple effect of business rates charity relief is felt across diverse sectors, fostering a conducive environment in communities that might struggle to achieve success otherwise. Ultimately, these business rate relief initiatives reinforce the well-being of individuals and communities at large.
Do Charity Shops Pay Rent?
Yes. According to the Charity Retail Association, charity shops typically have to pay rent on their premises and bills for services like electricity and gas, like any other business. As profits go to fund charity activities, these overheads present an ongoing challenge for organisations trying to make a positive impact within their communities.
There is an alternative. At ASTOP we specialise in bringing landlords, charities and community groups together to cut overheads even further. By sharing charity business rate relief savings with landlords we can negotiate rent-free spaces for charities and community groups. It is a model where everyone wins and is welcomed by local and national government alike. Contact us to find out more.
Navigating Business Rates Relief Ethically
ASTOP’s approach is simple, low-risk, ethical and proven. It is also approved by local councils across the country. Our success is based on the fact that landlords and property owners are liable for business rates on empty commercial premises. This is an unwelcome overhead, especially with no rental income coming in.
We help landlords avoid this costly set of circumstances by introducing them to charities and other good causes that could occupy otherwise empty premises. By sharing the business rates relief, landlords can afford to make the space available rent-free. This means the charity has the funds to use premises they could not otherwise afford. The landlord no longer has an empty property.
Because we make sure tenancy agreements are flexible and responsive, charities can make way for commercial tenants easily if, and when, the time comes.
Unlocking Maximum Benefits: Business Rate Relief Strategies for Landlords and Charities
For landlords, we offer empty premises to recognised and reputable good causes using legally binding rolling rent-free agreements that protect your interests. The resulting business rates relief is shared between you, us and the good cause. As well as this financial benefit, an occupied property needs less maintenance than an empty one. The risk of a property falling into disrepair is significantly reduced making reletting to commercial clients more likely. Associations with charities and good causes are often aligned with our clients’ Corporate Social Responsibility policies. They generally make for good PR too.
For good causes, we find rent-free retail and office space. Commercial premises are often in attractive, high-footfall areas such as shopping centres and high streets. This means you become easily accessible to your users and can achieve high levels of engagement. We make the paperwork easy with simple, low-risk rolling tenancy or licence agreements. These can include the landlord paying utility bills as well.
Our services are very much a ‘win-win’ for all parties involved which is why, unlike some business rate reduction tools, our approach is welcomed by local councils.