SMALL businesses in Oxfordshire have welcomed the start of a year's break from paying business rates, but advisers are warning that some companies have not registered for the temporary exemption.

Several thousand businesses are being sent revised bills, and many of these are due for a refund of more than £1,000.

The break was part of a package announced in March by Labour's Chancellor, Alistair Darling, to boost the economy. From this month, no business rates are payable on properties with rateable values up to £6,000.

Properties with rateable values between £6,001 and £12,000 have relief on a sliding scale.

Will Pouget, owner of The Vaults cafe and the Alpha sandwich bar at Oxford's Covered Market, said: "It will be an enormous help. Small businesses really need this, because big businesses get economies of scale and they can afford professional tax advice.

"Rates are a massive expense for independent local businesses."

He added: "A lot of businesses in the market are owner-operated and they struggle with limited profits. This should make a massive difference."

Iain Nicholson, of the Oxfordshire Town Chambers Network, urged businesses to check that they receive the rates relief they are entitled to.

He said: "It's definitely welcome. It comes at a very good time because it has been a tough and challenging period, so this help is very welcome.

"It isn't clear how quickly it will be implemented across all the councils in Oxfordshire."

The rates are collected by district councils. West Oxfordshire District Council said revised bills would be sent to 700 businesses which will leave them with little or no further rates to pay for the remainder of the year. In excess of 350 businesses will also see a significant reduction in their bill for the remainder of the year.

Councillor Simon Hoare, of West Oxfordshire District Council, said: "These are tough times, with the economy slowly recovering from the recession and this will be a great help for small businesses over the next 12 months.

"However, we believe there are a number of small businesses that have not yet claimed rates relief and we would urge them to do so as soon as possible so that they can also benefit."

Janet Ferris, of Cherwell District Council, said they had written to 780 businesses, of whom 400 had already received refunds.

Some 524 businesses in South Oxfordshire and 362 in the Vale can expect refunds over the coming weeks, and spokesman Gavin Walton said any new businesses that qualify for the rates relief could download an application form from both councils' websites.

Oxford City Council said it was sending out revised notices this week.

A typical small business occupying one building with a rateable value of £6,000 will see its bill for April 2010 to April 2011 fall from about £2,500 to £1,250. Next year's bill will be about the same, with no payments due until October 2011.