How are Business Rates Calculated?
The charges for Business Rates are calculated by multiplying the rateable value of an individual property by the national non-domestic multiplier. The result of this calculation is the amount of rates payable for the year.
What is the rateable value?
The Valuation Office Agency (part of the Inland Revenue) sets each non-domestic property a rateable value and maintains a rating list.
The rateable value broadly represents the yearly rent of the property at a particular date in time. For the valuations that came into affect in 2010, this date was 1 April 2008. The rateable value of your property will be shown on the front of your bill.
The rating list contains information about non-domestic properties within a billing authority area.
This information includes:
- the address of the property
- a description code
- whether the property is partly domestic (a composite property)
- the property's rateable value
You can view the rating list on the Valuation Office (VOA) website or in person at Solihull Connect or the Coventry Valuation Office (5th floor Sherbourne House, 1 Manor House Drive, Coventry, CV1 2TG, Tel. 03000 501501).
In maintaining the rating list the valuation officer may alter the value if s/he believes the circumstances of the property have changed for example, building or demolishing an extension. Therefore such changes must be reported to us immediately.
Appealing against the rateable value
If you believe your rateable value is incorrect, or the circumstances of your property have changed, you may be able appeal against it. The effect of successful appeals against values shown in the rating list will normally be backdated to the beginning of the financial year in which they are made, although there are exceptions to this. Further information on the grounds for making an appeal, how to make one and arrangements for any successful appeals can be found on the VOA website or by contacting the local valuation office (Coventry Valuation Office 5th floor Sherbourne House, 1 Manor House Drive, Coventry, CV1 2TG, Tel. 03000 501501).
Rating advisers
Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. Appeals against rateable values can be made free of charge. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS) and the Institute of Revenues and Rating (IRRV) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating adviser, you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.
What is the National Non-domestic Multiplier?
The 'National Non-Domestic Rating Multiplier' is a 'rate in the pound' used to calculate your rates. The multiplier is set by Government for the whole of England and any changes in the multiplier are effective every year on the 1 April to move in line with inflation.
By law, the multiplier cannot go up by more than inflation, except in a year of a revaluation when it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year.
For further information on the national Non-Domestic Multiplier please contact us.
What happens when a Revaluation occurs?
When a revaluation takes place there may be significant changes in your rateable value, due to increases or decreases in property values over the five years preceding the last revaluation.
Transitional arrangements are used to help phase the changes in by limiting the yearly increase or decrease in your Business Rates charge after the revaluation has taken place.
These transitional calculations are carried out automatically; if applicable any changes will be shown on your bill and will continue to apply each year until the full amount becomes due.
This scheme only applies to your bill where an increase or decrease of your properties rateable value is due to the revaluation. If there are changes to the property after the revaluation date transitional arrangements will not usually apply to that part of the bill.
Deferral Scheme 2012/2013
Businesses were able to defer 60% of the increase of their 2012/2013 rate bill as a result of the RPI up rating (which was an increase of 5.6%). This equated to 3.2% of their 2012/13 bill.
This amount has to be repaid in equal amounts over 2012/13 and 2014/15.
Contact us
For further information on Business Rates please contact the Business Rates Team on:
Telephone number 0121 704 8175
Email businessrates@solihull.gov.uk or
Write to us at Business Rates, Income and Awards, PO Box 1761, Council House, Solihull, West Midlands, B91 9RR