Business rates calculations
All non-domestic property have a rateable value which is set by the valuation officers of the Valuation Office Agency (VOA), an agency of HM Revenue and Customs. They draw up and maintain all rateable values and compile them into a rating list, the national non-domestic rating list is available to be viewed on their website at www.voa.gov.uk
The rateable value of your property is shown on the front of your bill. This broadly represents the annual rent the property could have been let for on the open market on a particular date. For the 2010 revaluation that came into effect on 1 April 2010, this date was set as 1 April 2008. For the 2017 revaluation on 1 April 2017, this date was set as 1 April 2015.
The local authority calculates the business rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers; the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The former is higher to pay for small business rates relief. The government sets the multipliers for each financial year for the whole of England according to formulae set by legislation. Generally, the multipliers increase in line with inflation according to the Retail Price Index in September of the preceding year.
The 2017 multiplier has reduced to ensure the revaluation does not raise any more rates that in previous years. The small business non-domestic multiplier has reduced from 48.4p to 46.6p. The national non-domestic multiplier has reduced from 49.7p to 47.9p.
2016/17 financial year:
Small business non-domestic multiplier for properties with a rateable value of less than £18,000;
48.4p in the pound
National non-domestic multiplier for properties with a rateable value of £18,000 or above;
49.7p in the pound
2017/18 financial year:
Small business non-domestic multiplier for properties with a rateable value of less than £51,000;
46.6p in the pound
National non-domestic multiplier for properties with a rateable value of £51,000 or above;
47.9p in the pound
Example of the basic charge calculation
Please find below an example of how to calculate the basic business rates charge.
Small business non-domestic charge.
Rateable Value £15,000 x Multiplier 0.466 = Annual Charge £6,990.00
National non-domestic Charge
Rateable Value £100,000 x Multiplier 0.479 = Annual Charge £47,900.00
If you have questions about the way your rates bill has been calculated, please contact the business rates team using the below details.
Telephone: 01454 867700Is there anything wrong with this page?