BID Levy and Rules
Levy payments based on rateable value
|Levy Payable Per Annum*
|£10,000 - £25,000
|1.5% of the Rateable Value (capped at £17,500*)
The BID regulations of 2004 sets out the rules and regulations under which the BID operates. This document can be found here www.legislation.gov.uk/uksi/2004/2443/contents/made
BID Levy Rules
- The BID levy will be applied to all eligible non-domestic properties within the BID area with a rateable value of £10,000 or more. Properties within the BID area with a Rateable Value below £10,000 will not be subject to the BID levy.
- Throughout the BID term the BID levy rate is £160 per annum for hereditaments with a Rateable Value of between £10,000 and £25,000 and for hereditaments with a Rateable Value over £25,000 the levy will be applied at 1.5% of the Rateable Value.
- Throughout the 5-year BID term the BID levy will be based on the Rateable Value as at the ‘chargeable day’ being the 1st April each year.
- The maximum levy charged on any single hereditament has a cap of £17,500 per annum (subject to rule 5).
- *The BID levy may increase by an annual inflation factor that reflects an increase of no more than the Consumer Price Index (CPI) as at September in the preceding financial year, to be agreed by the BID Board of Directors on an annual basis from 2021 onwards.
- As a revaluation occurs the new Rateable Values are applied to the levy to be effective from 1st April in the year of the revaluation.
- When a Rateable Value changes, is subject to a split or merge, is removed or entered into the ratings list this will have no effect on the BID levy until 1st April the following year.
- The levy is collectable on a ‘chargeable day’ basis, the person liable to pay the BID levy is the liable party for the non-domestic rates for the hereditament on the 1st April each year.
- The BID levy is payable annually in advance of 1st April each year.
- If a Rateable Value changes after the chargeable day the revised levy will be charged at the next chargeable day irrespective of the date change.
- The levy will not be altered by retrospective adjustments to Rateable Values that are reassessed to a period prior to the 1st April each year.
- Non-retail charities with no trading income, arm or facilities, not for profit subscriptions and volunteer-based organisations will be exempt from paying the levy.
- Owners or registered business ratepayers of vacant, untenanted properties or hereditaments, properties undergoing refurbishment or properties demolished will be liable for the BID levy.
- The BID Levy will not be affected by small business rate relief schemes, service charges paid to landlords, exemptions, discretionary relief or discount periods or schemes in the National Non-Domestic Rate Regulations 1989 made under the Local Government Finance Act 1988.
- VAT will not be charged on the BID levy.
- BID arrangements may be altered without an alteration ballot as long as there are no proposals to alter the geographical area of the BID or alter the BID levy in such a way that would cause any person to be liable to pay the BID levy who was not previously liable to pay; or to increase the BID levy for any person other than for inflation purposes.
- Where there is reference to a renewal in this business plan, this is a marketing term, the ballot will be for a new BID.
BID Levy and Inflation
BIDs are funded by businesses in the BID area via a BID levy. The way the BID levy is applied in the Wolverhampton BID area is set out in the BID Levy Rules. Rule 5 of the BID Levy Rules sets out how inflation affects the levy payable.
Rule 5: The BID levy may increase by an annual inflation factor that reflects an increase of no more than the Consumer Price Index (CPI) as at September in the preceding financial year, to be agreed by the BID Board of Directors on an annual basis from 2021 onwards.
The table below sets out the levy payable for each of the current BID years and includes the inflation factor where applied
|BID Year 1 - 2020/ 21
|BID Year 2 - 2021/ 22
|BID Year 3 - 2022 /23
|BID Year 4 - 2023 / 24
|BID Year 5 - 2024 / 25
|Inflation applied in each BID year
|0% (No inflation applied)
|0% (No inflation applied) (Levy reduced by 15% to reflect pandemic restrictions)
|(CPI at 3.1%)
|(The inflation factor was offset against significant reductions in Business Rates, with the majority of businesses paying less levy in real terms) (CPI at 10.1%)
|(CPI at 6.7%)
|Rateable Value Between £10,000 and £25,000
|BID Levy £160.00 p/a
|BID Levy £136 p/a (Levy at £160 with 15% reduction applied)
|BID Levy £162.48 p/a
|BID Levy £178.89 p/a
|BID Levy £190.88 p/a
|Rateable Value Above £25,000
|BID Levy at 1.5% of Rateable Value (Levy capped at £17,500.)
|BID Levy at 1.5% of Rateable Value but with 15% discount issued to all BID Businesses (Levy capped at £17,500.)
|BID Levy at 1.52% of Rateable Value (Levy capped at £17,771.25)
|BID Levy at 1.67% of the Rateable Value (Levy capped at £19,566.15)
|BID Levy at1.78% of the Rateable Value (Levy capped at £20,877.08)