Odd budget question.

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Peter Crisp
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PostOdd budget question.
by Peter Crisp » Wed Mar 11, 2020 2:26 pm

This may be an odd topic but I have a question about the budget that I know some of you will be able to answer.
This is a bit baffling to me.

*Business rates will be abolished for firms in the retail, leisure and hospitality sectors with a rateable value below £51,000

While that may seem simple how is the £51,000 counted? That seems like a tiny amount that even a mid sized coffee shop could whizz past easily in a year so how is this number calculated? Is this just pure profit or something else?
If it's just £51k of takings then surely that helps almost nobody?

Last edited by Peter Crisp on Wed Mar 11, 2020 2:44 pm, edited 1 time in total.
jiggles wrote:Nobody with a VR headset is going to be using it regularly this time next year, let alone in 4 years time.


Posted 16th March 2016. Let's see.
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False
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PostRe: Odd budget question.
by False » Wed Mar 11, 2020 2:39 pm

if your business is a small one with no huge stock inventory and provides a living wage, 35k or so for example, rented premises, you could probably skate under that

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Tomous
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PostRe: Odd budget question.
by Tomous » Wed Mar 11, 2020 2:43 pm

It's based on the annual rent of your property isn't it? Or an estimate of the market rate anyway.

I imagine a lot of small businesses are in properties with rent of < £51k per annum.

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Peter Crisp
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PostRe: Odd budget question.
by Peter Crisp » Wed Mar 11, 2020 2:49 pm

Tomous wrote:It's based on the annual rent of your property isn't it? Or an estimate of the market rate anyway.

I imagine a lot of small businesses are in properties with rent of < £51k per annum.


Ah ok so that makes more sense.
So it has nothing to do with how much money the business actually takes in then just the cost of the rent?
It struck me as odd as coffee where I am costs about £2.50 and with snacks as well getting enough customers for a total of £51K didn't seem all that tough to manage in a year.

Thanks everyone for the info :wub: .

May as well turn this into a general budget topic now.

jiggles wrote:Nobody with a VR headset is going to be using it regularly this time next year, let alone in 4 years time.


Posted 16th March 2016. Let's see.
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Tomous
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PostRe: Odd budget question.
by Tomous » Wed Mar 11, 2020 2:51 pm

Peter Crisp wrote:
Tomous wrote:It's based on the annual rent of your property isn't it? Or an estimate of the market rate anyway.

I imagine a lot of small businesses are in properties with rent of < £51k per annum.


Ah ok so that makes more sense.
So it has nothing to do with how much money the business actually takes in then just the cost of the rent?
It struck me as odd as coffee where I am costs about £2.50 and with snacks as well getting enough customers for a total of £51K didn't seem all that tough to manage in a year.

Thanks everyone for the info :wub: .

May as well turn this into a general budget topic now.



Correct, it's nothing to do with the profitability of the business, but rates on the property they use.

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rinks
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PostRe: Odd budget question.
by rinks » Wed Mar 11, 2020 3:32 pm

I read this yesterday. I think it explains business rates very well, including what’s wrong with them.

https://www.bbc.co.uk/news/business-51676242

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PostRe: Odd budget question.
by rinks » Wed Mar 11, 2020 3:39 pm

My favourite off licence closed down last month, and I reckon this abolition would have been enough to save them, but it’s too late now.

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PostRe: Odd budget question.
by Hexx » Wed Mar 11, 2020 4:23 pm

Peter Crisp wrote:This may be an odd topic but I have a question about the budget that I know some of you will be able to answer.
This is a bit baffling to me.

*Business rates will be abolished for firms in the retail, leisure and hospitality sectors with a rateable value below £51,000

While that may seem simple how is the £51,000 counted? That seems like a tiny amount that even a mid sized coffee shop could whizz past easily in a year so how is this number calculated? Is this just pure profit or something else?
If it's just £51k of takings then surely that helps almost nobody?


Rateable value
The VOA gives a rateable value to each non-domestic property and this is used by local councils to calculate a property’s business rates.

A property’s rateable value represents the rent the property could have been let for on a certain date set in law. It may not be the actual rent paid on this date as the law makes a number of assumptions (such as the property being vacant, to let and in reasonable repair, and that the rent excludes any other charges, taxes or insurance). The rateable value is not the amount you pay, but it is used by local councils to calculate your business rates bill. You can find out how they do this on our information page.


https://www.gov.uk/guidance/how-non-dom ... able-value


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