Business Rates & Relief –Studio holder Information
Dear Tenants/Studio holders, we have prepared this guide to help explain Business Rates and Small Business Rate Relief (SBRR). The information below is based on our current understanding and is intended as general guidance only.
What Are Business Rates?
Business Rates are a tax charged on non-domestic properties, similar to Council Tax for residential properties. They are usually payable by the occupier of the premises.
Am I Responsible for Paying Business Rates?
Yes. Our studio users are responsible for the Business Rates. However, if your sole property has a rateable value below £12,000, you may qualify for 100% Small Business Rate Relief and may not need to pay any Business Rates. Many of Arbeit’s tenants are eligible for relief due to the size and rateable value of the spaces.
Do I Need to Be a Limited Company to Apply for Relief?
No. “Business” is interpreted broadly and can include:
Artists and makers
Freelancers
Start-ups
Sole traders
Individuals testing a business idea
Occupiers not yet registered with HMRC
You do not need to be an established company to apply.
Do I Need to Apply for Small Business Rate Relief?
Yes. You must apply for the relief in order to receive it. You can aly only once you are on the council system, so lease notify the council about your move in directly. Once you have received your business rate bill, you can apply for the small business rate relief.
Arbeit can provide you with information you need for the application, including:
● Local authority reference number
● Rateable value of your studio/unit (if needed).
Who Is My Landlord?
Your landlord is:
Arbeit Studios - 1 Trowbridge Road, London E9 5LD
What Should I Enter for “Period for Which Relief Is Being Sought”?
This should normally be the start date of your tenancy or licence agreement.
What If I Occupy Other Properties in England?
Most of our tenants/studio holders do not occupy any additional business premises, and in this case you should answer “None”. Your home address or registered office address does not normally count unless it is also used as business premises. If you occupy another property for business purposes, you might not eligible for the small business rate relief (see below).
Can I Still Receive Relief If I Have More Than One Property?
Unlikely, only in certain circumstances since the small business relief supports businesses with one commercial property.
You may still qualify for Small Business Rate Relief if:
● Any additional property has a rateable value below £2,900, and
● The total rateable value of all properties is below the London threshold of £28,000.
In these circumstances, relief may still apply to your main property.
Please note:
● Relief is generally not available on additional properties.
● Some councils may allow temporary relief on an additional property for up to 12months.
What Should I Do If I Receive a Letter About Business Rates?
Please apply for Small Business Rate Relief as soon as possible if you have not already done so. If you have received correspondence from the council and are unsure how to respond, please contact us.
What If I Have Not Been Contacted by the Council?
Please ensure that you notify the council that you have moved into your unit. If you have not received a response, please follow up with the council to confirm that your occupation has been registered. You can also let us know, and we can help ensure that the council has the correct information for your unit and provide any information needed to support your application.
What To Do If You Receive a Business Rates Letter
If you receive a letter, email, or form from the council regarding Business Rates, please do not ignore it.
In most cases, the letter is asking you to:
● Confirm you occupy the space
● Provide business details
● Apply for Small Business Rate Relief (SBRR)
● Confirm whether you occupy any other business premises
How to respond depending on the type of contact you receive.
Below is a general guide on how to respond depending on the type of contact you receive.
1. Application Form for Small Business Rate Relief
If the council sends you a Small Business Rate Relief application form:
● Complete the form as soon as possible
● Use the property information provided by Arbeit
● State the start date of your tenancy/licence agreement as the occupation date
● If you do not occupy any other business premises, answer “No” or “None” where applicable
You do not need to be a Limited Company or VAT registered to apply.
2. Letter Asking Who Occupies the Studio or Unit
Some councils may contact you to confirm who occupies the premises. In this case:
● Confirm that you are the occupier/user of the space
● Provide your contact details
● State the start date of your agreement if requested
● Explain briefly what you use the space for (for example: artist studio, design practice, workshop, creative business, storage connected to your work, etc.)
3. If You Operate as an Individual or Artist
You can still apply for relief even if:
● You are self-employed
● You are an artist or maker
● You are testing a business idea
● You are not registered with HMRC yet
● You do not operate through a Limited Company
Councils generally interpret “business use” broadly.
4. If You Also Occupy Another Property
If you occupy another business premises in England, you may need to declare this. You can contact Arbeit before responding if you are unsure whether another address counts as business occupation. Your home address will not normally count unless it is also used as a business premises.
5. If You Receive a Business Rates Bill
Receiving a Business Rates bill does not necessarily mean you must pay the full amount.
You may still qualify for Small Business Rate Relief. If you receive a bill before relief has been applied:
● Complete the relief application immediately
● Contact the council to confirm the application is being processed
● Keep copies of all correspondence
6. If You Are Unsure How to Respond
Please send a copy of the letter or email to Arbeit and we will help where we can.
Need Help?
If you have any questions regarding Business Rates, rate relief, or correspondence from the council, please contact the Arbeit team.