What are business rates?
Business rates are paid by the owners or occupiers of non-domestic properties.
If you wish to learn more about business rates then please see Business Rates Explained.
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Horsham Financial Information
Business Rates Explanatory Notes 2022/23
COVID Additional Relief Fund (CARF)
The Government’s COVID-19 Additional Relief Fund (CARF) is to support businesses affected by the pandemic who are not eligible for existing support linked to business rates.
The aim of this scheme is to provide Business Rates Relief for the financial year 2021/22 to those businesses who have been adversely affected by the pandemic and have been unable to adequately adapt to that impact.
To be eligible for relief the business must be:
- occupying the property and be liable for the business rates in Horsham DC area during the financial year 2021/22 and
- must be able to demonstrate how the business has been adversely affected by the pandemic.
The relief will be awarded to the business rate account after all other discounts and reliefs and as such, if there is no business rates liability or other business rates relief already granted to the business during the relief period the business will not be eligible for this relief.
You will not be eligible for this relief if you are:
- eligible for Extended Retail Discount or Nursery Discount
- Not in occupation of the business property (Unless you have been forced to close due to the Government’s advice on Covid-19)
- Not registered for Business Rates
- Already In receipt of full rates relief
- In administration, insolvent or where a striking-off notice has been made
- Not able to demonstrate how the business has been adversely impacted by the pandemic
There is a requirement for all grants made under this Discretionary Grants fund to be subsidy allowance compliant. Please see further government guidance on this via this link (Section 19-29): CARF Guidance (publishing.service.gov.uk)
How much funding will be provided to successful businesses?
Due to the limited level of funding available, the Council will operate an application window and once closed, will determine the amount to be awarded in each case.
In order for the COVID19 Additional Relief Fund to benefit the maximum number of businesses, it is proposed to have 3 levels of relief awards, directly proportionate to the relative impact on the trading sector of the business due to the COVID19 crisis.
The level of discount will be allocated proportionately based on low, medium and high impact as assessed by the Council. The specific level of relief that will be awarded to each category will be based on the quantity of applications and the funding available.
The level of funding for these discretionary reliefs will be decided by the Council within the above guidelines once all applications have been reviewed. There will be no review of this decision and no right to appeal.
Apply for the CARF Business Rates Relief
Applications for the CARF discount must be made through the Council’s portal by 11.59pm on 31 March 2022.
Applications will not be reviewed and processed until after the closing date.
Revised business rates bills will be issued to successful applicants once all applications have been reviewed.
Business grant subsidy allowances
The EU State aid rules no longer apply to subsidies granted in the UK following the end of the transition period, which ended on 31 December 2020. This does not impact the limited circumstances in which State aid rules still apply under the Withdrawal Agreement, specifically Article 10 of the Northern Ireland Protocol. The United Kingdom remains bound by its international commitments, including subsidy obligations set out in the Trade and Cooperation Agreement (TCA) with the EU
On Thursday 4 March new subsidy allowances were established for the COVID-19 business grants schemes, on the basis of the principles set out in Article 3.4 of the TCA.
The below scheme rules should be applied to applicants at the level of economic actor, which is defined as an entity or a group of entities constituting a single economic entity regardless of its legal status, that is engaged in an economic activity by offering goods or services on a market.
There are three subsidy allowances for this scheme set out below: Small Amounts of Financial Assistance Allowance, the COVID-19 Business Grant Allowance and the COVID-19 Business Grant Special Allowance.
Small Amounts of Financial Assistance Allowance
Grants may be paid in accordance with Article 3.2(4) of the TCA, which enables an applicant to receive up to a maximum level of subsidy without engaging Chapter 3 of the TCA. This allowance is 325,000 Special Drawing Rights, to a single economic actor over any period of three fiscal years, which is the equivalent of £335,000 as at 2 March 2021. An applicant may elect not to receive grants under the Small Amounts of Financial Assistance Allowance and instead receive grants only using the below allowances available under this scheme.
COVID-19 Business Grant Allowance
Where the Small Amounts of Financial Assistance Allowance has been reached, grants may be paid in compliance with the Principles set out in Article 3.4 of the TCA and in compliance with Article 3.2(3) of the TCA under the COVID-19 Business Grant Allowance (subsidies granted on a temporary basis to respond to a national or global economic emergency). For the purposes of these scheme rules, this allowance is £1,600,000 per single economic actor. This allowance includes any grants previously received under the COVID-19 business grant schemes and any State aid previously received under Section 3.1 of the European Commission’s Temporary Framework across any other UK scheme. This may be combined with the Small Amounts of Financial Assistance Allowance to equal £1,935,000 (subject to the exact amount applicable under the Small Amounts of Financial Assistance Allowance using the Special Drawing Right calculator).
COVID-19 Business Grant Special Allowance
Where an applicant has reached its limit under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, it may be able to access a further allowance of funding under these scheme rules of up to £9,000,000 per single economic actor, provided the following conditions are met:
The Special Allowance covers only the applicant’s uncovered fixed costs incurred during the period between 1 March 2020 and 31 March 2022, including such costs incurred in any part of that period (‘eligible period’);
- Applicants must demonstrate a decline in turnover during the eligible period of at least 30% compared to the same period in 2019. The calculation of losses will be based on audited accounts or official statutory accounts filed at Companies House, or approved accounts submitted to HMRC which includes information on the applicant’s profit and loss;
- ‘Uncovered fixed costs’ means fixed costs not otherwise covered by profit, insurance or other subsidies;
- The grant payment must not exceed 70% of the applicant’s uncovered fixed costs, except for micro and small enterprises (for the purposes of this scheme defined as less than 50 employees and less than £9,000,000 of annual turnover and/or annual balance sheet), where the grant payment must not exceed 90% of the uncovered fixed costs;
- Grant payments under this allowance must not exceed £9,000,000 per single economic actor. This allowance includes any grants previously received in accordance with Section 3.12 of the European Commission’s Temporary Framework; all figures used must be gross, that is, before any deduction of tax or other charge;
- Grants provided under this allowance shall not be cumulated with other subsidies for the same costs.