ECDC Business Rates Relief for Charities

10th September 2013

Higher Business Rates for Not for Profit Organisations within East Cambs District.
Since March 2012, East Cambridgeshire District Council (ECDC) has been reviewing it’s policy on granting Discretionary Relief on business rates to give assistance to charitable and not for profit organisations that may have difficulty in paying their rates and are of benefit to the local community, such as village halls. ECDC decided that the previous policy of granting 20% discretionary relief, either to top up the 80% mandatory relief, or to give discretionary relief alone, was too generous to certain organisations who did not really need this assistance:

As a result of this review, it was decided that from the 13-14 financial year onwards, discretionary rates relief (capped at £2,000 pa) would only be granted if the following criteria applied:

  1. No restrictive membership practices.
  2. Evidence of support for disadvantaged groups where the applicant is a community organisation.
  3. Facilities/services must demonstrate benefit to local people/redistribution of majority funding to local communities.
  4. Bar provision in facilities should be an ancillary service (less than 50% of income).
  5. Unrestricted reserves should not exceed £100,000.
  6. Average Annual surpluses (based on the two most recent sets of accounts) should not exceed £26,000.
  7. Various other eligibility criteria must also apply for the application to be eligible.

Local not for profit organisations will now need to review their constitution, surplus retention and a accounting policies to make sure they minimise their future exposure to this local tax.

Other items in Business Tax
Paul Jefferson
19th October 2021 VAT Registration

A business must compulsorily register for VAT if taxable 12 month turnover exceeds £85,000. They can voluntarily register for VAT as soon as they start trading, providing they expect to make taxable supplies in the future.   Businesses that provide to other businesses may choose to register for VAT voluntarily before the registration threshold is…

Sharon Mace
13th October 2021 VAT DIY Scheme: HMRC update list of allowable expenses

There has been some controversy on claims made on DIY building schemes. HMRC have updated their guidance on goods and services that can be claimed under the VAT DIY Housebuilders’ Scheme.   The list is extensive and gives an ABC of items that are allowed, from Agas to woodworm treatment – but there’s a catch,…

James Selby
8th October 2021 Annual Investment Allowance (AIA) – Maximising tax relief

The chance to take advantage of the generous temporary uplift in the AIA annual limit of £1,000,000 is coming to an end when it is due to revert to £200,000 from 1 January 2022.   It is a perfect time to plan to capitalise on claiming 100% tax relief on qualifying purchases without getting caught…

Bethan Hassey
24th September 2021 SSP Rebate Scheme closes 30 September 2021!

Normal Statutory Sick Pay (SSP) can be paid to your employees from the fourth day they are absent from work if they meet the following criteria: They are classed as an employee and have done some work for you Earn an average of at least £120 per week Have been ill for at least 4…

Millie Hunt
15th September 2021 VAT: Changes to the leisure & hospitality rate

To encourage spending in the leisure & tourism sector, the VAT rate for certain supplies was cut from 20% to 5% in July 2020. From 1 October 2021, the VAT rate will rise again to 12.5% and this rate will be in place until 31 March 2022.   If your business operates in the leisure…

Nick Edgley
9th September 2021 The new Health and Social Care Levy – increases to NIC and dividend tax

The new levy will increase all NIC rates by 1.25% from April 2022, this will affect employees, employers, self employed and the NIC paid on P11D benefits (such as company cars and private health care). The increase will apply to employed (include deemed employees) and self-employed individuals and partners earning above the class 1 primary…