The Federation of Small Businesses (FSB) has urged small businesses to check whether they qualify for business rate relief.
The call follows a government review of rateable values affecting non-residential residences, upon which ministers are basing adjustments to business rates.
According to the FSB, 40 per cent of businesses face the prospect of higher bills.
Changes to non-domestic rates will take place in April 2005, but small businesses are expected to be given the right to apply for special relief from January.
Roger Culcheth, FSB business rates spokesperson, said: "The relief is not automatic. If they qualify, businesses must then contact their local billing authority.
"For the first time a 50% rates relief looks set to be available on single properties worth £5,000 with relief declining on a sliding scale until it reaches zero at £10,000."
According to business groups, small firms in the retail sector are particularly vulnerable to rate rises, and some that are located in prime high street locations may be priced out of the area.
The business rates system has been criticised in the past as it focuses on the size of premises rather than the number of employees or an organisation's turnover.
The first step for small businesses is to find out whether they qualify. If firms have not received a summary valuation by post they should check their rateable value on the Valuation Office Agency website - http://www.voa.gov.uk/
