Business rates, or national non-domestic rates (NNDR), are collected by local authorities so that those who occupy non-domestic property pay towards the cost of local services.
Business rates are charged on most business properties including:
- warehouses and factories
- holiday homes if they are let for 140 days or more per year
- businesses that are run from domestic properties
Payment of business rates is automatically set over ten months. However, you can ask to have your payments set over 12 months. Contact us as soon as possible if you wish to take up this offer.
You can read more information in our billing leaflet (pdf / 167 KB).
How your business rates are calculated
We multiply the rateable value of an individual property, which is set by the Valuation Office Agency (VOA), by the national non-domestic standard multiplier or the small business multiplier (depending on the size of your business) which is set by central government. It is set for the whole of England and runs from 1 April each year. To find out how rateable values are assessed for different types of premises visit the business rates section of the government's website.
What is the rateable value?
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 valuation is based on information that the Valuation Office Agency (VOA) holds about your property. The rateable value of your property is shown on the front of your bill.
You can view your rateable value on the business rates section of the government website. You can check and challenge your business rates valuation with the Valuation Office Agency (VOA) if your property details need changing or you think that your rateable value is too high. The Valuation Office Agency (VOA) may accept your alter the value if your circumstances change. If you are in the process of challenging or appealing you cannot withhold payments in respect of any business rates bill you have received.
If you have any queries about the valuation of a non-domestic property you should visit the Valuation Office Agency’s website or call 03000 501501.
What is the non-domestic multiplier?
The multiplier represents the number of pence in each pound of the rateable value that will be payable in business rates before any relief or discounts are applied. The calculation gives the amount of rates payable for the year.
The small business multiplier is applied to any occupied property with a rateable value below £51,000. The standard multiplier is applied to those with a rateable value of £51,000 or more. The current multipliers are shown on the front of your bill.
The government reviews the multiplier each year to reflect changes in inflation. The list of multipliers can be viewed on the business rates calculator section of the government website.