Small Business Rate Relief (SBRR) should be automatically applied to bills, according to one industry body.
In a letter to the prime minister, the Federation of Small Businesses (FSB), points out that millions of pounds worth of tax breaks go unclaimed each year as firms are unaware they can apply for them.
For this reason, the amount should be deducted from bills when they are issued by town halls.
John Wright, national chairman of the FSB, said: "Presumably provision is made within the government’s financial calculations for such claims to be made so this could provide a significant boost for small businesses without affecting the government’s budget calculations."
The body also called for the 50 per cent rate release on empty properties to be reintroduced.
Earlier this week, the FSB stated it will be using the political conference season to push its Keep Trade Local campaign.
According to the body, small firms are vital to the UK economy.
