How are business rates calculated

The amount of rates payable takes two factors into account, the rateable value of a property and the 'multiplier' or 'poundage'.

The amount of rates payable takes two factors into account, the rateable value of a property and the 'multiplier' or 'poundage'.

Rateable values are determined by the Valuation Office Agency, which is an executive agency of the Inland Revenue.

Rateable values are usually reviewed every five years to reflect market values. This is called revaluation. The most recent revaluation of all rateable values took effect from 1st April 2017 and was carried out by the Valuation Office Agency.  

The multiplier is a figure worked out by the Government for each financial year (1st April to 31st March). Currently the multiplier changes annually in line with inflation.

We work out the bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers for 2020/21:

  1. The standard non-domestic rating multiplier is 51.2p in the pound (applied to businesses with a rateable value over £51,000).
  2. The small business non-domestic rating multiplier is 49.9p in the pound (applied to businesses with a rateable value under £51,000).

The Valuation Office Agency (VOA) values all business properties for business rates.  The valuation is based on information the VOA holds about your property.

You can contact the VOA. If you are unable to use the online service you can also contact the VOA on 03000 501 501

The VOA is contacting businesses to request rental information to support the next revaluation of business rates in England and Wales – Revaluation 2023.

If you receive a request please complete and submit your up-to-date details. It is important to provide this information to ensure business rates are fair and accurate.

 

What discounts and reductions are available?

Transitional Relief is an adjustment to the bill where rates increase significantly following a revaluation in order to phase in the change gradually. If rateable values decrease significantly a transitional surcharge can apply where the full decrease is phased in gradually.

Further detail about transitional relief can be found on the Gov.uk website.

Mandatory and Discretionary Reliefs are reductions to your Business Rates for a property occupied by a registered charity or by a non-profit making organisation. Relief may also be given to Post Offices or similar small community operations in rural areas.

Small Business Rate Relief was introduced from 1st April 2005. If you have a business with a rateable value less than £15,000 you may be qualify. Advice on how the scheme works and how to claim.

The following page gives details about other reliefs and discounts available to businesses.


Last Updated on Wednesday, April 14, 2021