How are my business rates worked out?

  • How are my business rates worked out?

We work your your business rates bill by multiplying the rateable value of your property by the business rates ‘multiplier’.

You can estimate your business rates on the Gov.uk website

Rateable value

All non-domestic properties are given a rateable value by the Valuation Office Agency (VOA). There is a revaluation of all business rates usually every five years to reflect changes in the property market. On 1 April 2017, the new rating list came into effect and your bill will be based on this new rateable value. Find out more about the 2017 revaluation.

The rateable value of the property is based on the yearly rent the property could have been let for on the open market on a particular date. From 1 April 2017, the rateable values are based on the valuation date of 1 April 2015.

The ratepayer and certain others who have an interest in the property can appeal against the value shown in the list if they believe it is wrong. For more information please see the appeals and disputes page.

The business rates multiplier

Each year the government sets a multiplier, which represents the number of pence in each pound by which the rateable value is multiplied to arrive at the amount of business rates payable for the year.

The government reviews the multiplier each year to reflect changes in inflation.

The small business rates multiplier is used for a property with a 2017 rateable value below £51,000. For all other properties the standard multiplier is used.

Business rates multipliers for the financial year 2017/18

Rateable value of property

Multiplier

Standard rate

47.90p in the £

Small business rate

46.60p in the £

 

Business rates multipliers for the financial year 2016/17

Rateable value of property

Multiplier

Standard rate

49.70p in the £

Small business rate

48.40p in the £


Transitional rate relief

All rateable values are reassessed every five years at a general revaluation. On 1 April 2017, the new rating list came into effect and your bill will be based on this new rateable value.

Property values normally change a good deal between each revaluation, so transitional relief arrangements help to phase-in the effects of these changes on ratepayers' bills. Large rises are restricted so businesses are not suddenly asked to pay much larger amounts and this is offset by limiting big gains where businesses would have to pay significantly less.

We will automatically include transitional relief when we calculate your bill. It is shown on the bill as ‘Transitional Adjustment’. 

Transitional relief limits the percentage your business rates bill can be increased or decreased each year following revaluation. The transitional relief will apply each year until the full amount is due and your bill reaches what your full bill should be.

More information on transitional rate relief is available on the Gov.uk website.