Published at 09:38, Monday, 16 April 2012

MORE than 14,000 businesses in North and West Cumbria could save £3.4m in tax by deferring business rates in a bid to help support the local economy.

Businesses can now apply for the rates deferral scheme which ministers say will allow companies to defer paying taxes they owe for up to three years to help them in the current financial climate.

Local Government Minister Bob Neill wrote to every council urging them to ensure businesses were aware of help available to them.

Ministers say that the deferral scheme offers businesses “a much-needed tax break making a real difference to running costs”, by helping them to get on top of cash flow and giving time to adjust to inflation changes.

Mr Neill said: “Small shop and firms are at the heart of our communities, and it has never been more important to support them as they help rebuild and re-grow this country’s economy for the future.

“We have set up all these rate reprieves because we know local firms need a little more breathing space to make ends meet.”

Figures from government show there are 4,527 businesses in Allerdale which could defer payments to a combined £650,000, a further 4,189 in Carlisle saving £1.1m, and £1.15m could be deferred across 2,322 business in Copeland. A further 3,197 businesses could defer a combined maximum of £500,000 in Eden.

In addition, the government has doubled small business rate relief for two-and-a-half years.

This means that according to the Department for Communities and Government, a total number of 1,581 businesses across Allerdale, 1,089 in Carlisle, 662 in Copeland and 1,089 in Eden could be eligible to pay either no business rates at all or some percentage discount in between.

Under the Small Business Rate Relief (SBRR) scheme, small businesses can reduce their bills by on average £1,650 over the double discount period, dependent on the rateable value of the property.

Businesses with a rateable value of £6,000 would not pay any tax. In addition, businesses with rates between £6,001 and £12,000 received a discount on a sliding scale. The Chancellor extended the scheme until March 2013 in his budget.

Mr Neill added: “The Government has taken action to make sure there are a series of measures in place that support businesses and promote economic growth.”

Published by http://www.whitehavennews.co.uk