The charges for Business Rates are calculated by multiplying the rateable value of an individual property by the appropriate National Non-domestic Multiplier. There are two multipliers
- the standard non domestic rating multiplier
- the small business non domestic rating multiplier
What is the rateable value?
The Valuation Office Agency 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 and will be shown on the front of your bill.
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:
- the rateable values are based on the valuation date of 1 April 2015
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
In maintaining the rating list a valuation officer may alter the value if they believe the circumstances of the property have changed for example, building or demolishing an extension. Therefore such changes must be reported to us immediately.
What is the National Non-domestic Multiplier?
The 'National Non-Domestic Rating Multiplier', standard or small business are a 'rate in the pound' used to calculate your rates. They are set by Government and inflation restricted, changes are effective for the fiscal year. The multipliers for 2021/2022 are:
- Standard - 51.2p
- Small Business Multiplier - 49.9p*
The VOA regularly reassesses and updates the rateable values of all business properties, usually every five years. This is called a revaluation. This is done to maintain fairness in the system by redistributing the total amount payable in business rates, reflecting changes in the property market. Revaluation does not raise extra revenue overall.
*From 1 April 2017 the small business multiplier applies to all occupied properties (that are not entitled to a mandatory relief), that have a rateable value of less than £51,000.
What happens when a revaluation occurs?
The multiplier can only increase or decrease by more than inflation in a year of revaluation.
Significant changes in your rateable value could be made due to increasing and decreasing property values. Transitional arrangements automatically limit changes to your rates.
Transitional arrangements will be applied automatically and are shown on your bill. Further information on transitional arrangements is available at Gov.UK.
Appealing against the rateable value
You do not have to be represented in discussions about your rateable value but you can employ independent rating advisors to handle proposals.
It is important that you ensure your advisers have the right level of knowledge and expertise, and appropriate indemnity insurance. Ideally, they will be members of the Royal Institution of Chartered Surveyors and/or Institute of Revenues and Rating who are regulated by rules of professional conduct.
If you believe your rateable value is incorrect, or the circumstances of your property have changed, you may be able appeal against it.