Total estimated cost to scale your business over one year

Potential cost reliefs

• If your business uses a sole property that has a rateable value of under £15,000 you may be entitled to small business rate relief scaling from 0-100% between £12,001 and £15,000.
• You may be eligible for rural rate relief if your business is situated in a rural area with a population under 3,000, is the only village post office or shop with a rateable value under £8,500, or the only pub or petrol station with a rateable value under £12,500.
• If you're a charity or an amateur sports club, you might be eligible for charitable rate relief if the property is used for charitable purposes. Local councils may be able to increase the relief to 100% at their discretion.
• Your business may be eligible for charitable rate relief of up to 100% if your property is situated in an enterprise zone.

Extra costs to consider

• Once your turnover reaches the VAT threshold (£85,000 over 12 months) you must register for VAT. You can also voluntarily register for VAT below this value.
• With flat rate VAT, rather than providing VAT to HMRC for each transaction, you pay a flat rate of your turnover (based on your industry) and charge customers and clients standard VAT (20%). You cannot reclaim for VAT paid on purchases under this system. You pay a higher rate of 16.5% if your goods cost less than either 2% of your turnover or £1,000 a year.
• You must also pay corporation tax, at a current rate of 19%, on profits if you are a limited company. Corporation tax is paid on trading profits, investments and chargeable gains.