Business Rates - General Information
Business Rates are payable on most non-domestic properties such as shops, offices, factories, warehouses, public houses, restaurants, and stables. The person or company benefiting from a property normally pays the Business Rates. This is usually the owner-occupier or leaseholder.
We administer and collect Business Rates and are engaged in assurance activities to promote fairness and equity in the Business Rates system. In recognition of this, the Government has awarded additional funding to support us with this work. We are keen to ensure that all business premises are captured in the Local Rating List and that the rateable values are correct and reflect any changes made since the last assessment. You can check if premises are rated. If you run, or are aware of, a business that may not be rated (or if you think that the assessment is out of date), please inform us on 01775 761161 followed by option four without delay. All information supplied will be treated in confidence.
It is important that owners, tenants and occupiers of premises keep us informed of any changes that could affect the rates bill (for example, changes in occupation status, liable party, exemptions and rate relief entitlements). Please help us to keep our records up to date by contacting us straight away.
Calculating Business Rates (Non-Domestic Rates)
Every rated property has a Rateable Value (RV). Each year the Government sets a fixed amount to be used in calculating Business Rates. This is known as the multiplier. Your bill is calculated by multiplying the RV of a property by the multiplier.
Rateable Value (RV)
The rateable value is assessed by the Valuation Office Agency, which is an agency of HM Revenues and Customs.
A property's rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date.
- Until 31 March 2017, the rateable values will be based on a valuation date of 1 April 2008
- From 1 April 2017, the rateable values will be based on the valuation date of 1 April 2015
You can view and appeal your rateable value with the Valuation Office Agency . If you appeal, you must pay in accordance with your bill whilst your appeal is outstanding.
The Government sets two multipliers every year - the standard multiplier and one for small businesses.
Depending on the type of property, usually either Council Tax or Business Rates will be payable - some may pay both. Generally, Business Rates do not have to be paid for minor business use of the home. Where part of the home is used for one of the reasons below then Business Rates are likely to apply:
- used exclusively for business purposes
- has been adapted for business use
- where clients visit the premises
- where you employ people to work from there
Lots of small businesses can currently get rate relief of up to 100 percent of the bill leaving nothing to pay - although they should still be rated to avoid any allegation of attempted local tax avoidance. Check if your premises are rated.
If there is a large change in rateable values following a revaluation, transitional arrangements help to phase the effects of these changes by limiting increases in bills.