How your business rates are worked out
Business rates, or non-domestic rates, are the means by which businesses make a contribution towards the cost of services provided by local councils.
They are charged on business properties such as shops, offices, pubs, warehouses and factories. They are also charged on business related items like phone masts, advertising hoardings and ATM machines. If you work from home you will normally only be charged business rates if you have structurally altered your property for your business needs.
They are payable by the occupier of the business premises. If the property is empty, then they are payable by the owner or tenant.
Calculating your business rates
There are two steps in working out your business rates.
Find your rateable value
Each non-domestic property has a rateable value. This is set by the Valuation Office Agency. It is an estimate of the open market rental value of a property on a particular date. Business rates charged from April 2017 use property values from 1 April 2015. Business rates charged prior to April 2017 use the property values from 1 April 2008.
The revaluation of rateable values from April 2017 means that some valuations have increased and others have reduced. This may affect the amount of business rates you are charged.
Multiply your rateable value by a business rates multiplier figure
We work out your business rates bill by multiplying the rateable value of your property by a figure, which the government sets each year. The multiplier figure depends on the value of your property.
| Rateable value | Multiplier |
|---|---|
| £0 to £50,999 | 49.9 pence in the pound |
| £51,000 and above | 51.2 pence in the pound |
| Rateable value | Multiplier |
|---|---|
| £0 to £50,999 | 49.1 pence in the pound |
| £51,000 and above | 50.4 pence in the pound |
| Rateable value | Multiplier |
|---|---|
| £0 to £50,999 | 48.0 pence in the pound |
| £51,000 and above | 49.3 pence in the pound |
| Rateable value | Multiplier |
|---|---|
| £0 to £50,999 | 46.6 pence in the pound |
| £51,000 and above | 47.9 pence in the pound |
You can estimate your business rates bill, and find out the rateable value of any business property at the government's GOV.UK website:
Reducing your bill
There are discounts available called business rates reliefs. These include reductions for: