How we calculate your business rates
We work out your business rates bill by multiplying the rateable value of your property (set by the Valuation Office Agency (VOA)) - by the business rates multiplier (set by Central Government).
The rateable value is the yearly rent the property could have been let for on the open market on a certain date.
The VOA resets rateable values every five years. The last time they were set was 1 April 2017, based on property values on 1 April 2015.
The VOA may also change the value if circumstances change.
You can find the rateable value of your property on the front of your bill. There is a full list of all the rateable values on the VOA website.
Appealing your property's rateable value
You can ask for your property’s rateable value to be corrected if you think it’s wrong.
You don’t need to use a ratings advisor to appeal. However if you decide to use an advisor, make sure they are a member of the Royal Institution of Chartered Surveyors and the Institute of Revenues Rating and Valuation. They are qualified and have a code of conduct which will protect you from poor service.
Check that they have the knowledge and expertise needed, as well as appropriate indemnity insurance. Take great care and, if necessary, get advice before entering into any contract.
Business rates multiplier
The government has set two multipliers:
- Standard non-domestic multiplier
- Small business non-domestic multiplier
The Government revaluates (resets) the multipliers every year, using formulas set by law.
In between these revaluations, the Government also change the multipliers to bring them in line with inflation and to take account of the cost of small business rate relief.
In the year of a revaluation the multipliers are reset to account for changes in rateable values and to make sure that no extra money is raised for Government.
Most properties in the valuation list have the words 'and premises' in their description, for example 'shop and premises'.
In this case the 'and premises' means any parts of the shop which are not separately mentioned in the description such as a storeroom, a small kitchen area or staff toilet.
It will not include any flats or homes above the shop. They will be taxed separately under council tax.