How are Business Rates calculated?

The amount you pay is based on multiplying the rateable value of your property by the National Non-Domestic Rating Multiplier (the annual rate in the pound)

The rateable value of each non-domestic property is fixed by an independent valuation officer from the Valuation Office Agency (VOA).

All non-domestic properties are revalued (in theory) every five years.  Five yearly revaluations make sure each ratepayer pays their fair contribution and no more, by ensuring that the share of the national rates bill paid by any one ratepayer reflects changes over time in the value of their property relative to others. The latest valuation is effective from 1 April 2010.

The rateable value of a property broadly represents the yearly rent the property could have been let for on the open market on a particular date. For the 2010 revaluation this date was set as 1st April 2008.

The National Non-Domestic Rating Multiplier for each financial year is set by central Government. Since the introduction of Small Business Rate Relief in April 2005 there have been two multipliers for each year, the standard Non-Domestic Multiplier and the Small Business Multiplier.

The multipliers from 2005 onwards are;

Year Non-Domestic Multiplier Small Business Multiplier
2005/06 42.2 pence 41.5 pence
2006/07 43.3 pence 42.6 pence
2007/08 44.4 pence 44.1 pence
2008/09 46.2 pence 45.8 pence
2009/10 48.5 pence 48.1 pence
2010/11 41.4 pence 40.7 pence

The multiplier changes each year in line with inflation.

The provisional multipliers for 2011/2012 are;

Non-Domestic multiplier 43.3 pence

Small Business multiplier 42.6 pence

Rateable Values can increase or decrease substantially following a revaluation. Transitional Relief helps to phase in the effects of large increases or decreases in rateable value between revaluations by limiting the amount by which your rates bill can change each year.

You can check your rateable value or lodge an appeal on the Valuation Office Agency website using the link on the right.  There are many variables that affect the amount that should be paid. 

A Local Independent Surveyor can advise you if you wish to consider making an appeal or put you in touch with a suitably experienced local professional who can assist in an appeal or valuation to make sure that you are not paying too much.