Calculating your business rates
Your rates bill is calculated by applying a multiplier to the rateable value of the premises.
The rateable value is set by the Valuation Office Agency (VOA). They draw up and maintain a full list of all rateable values, available on the Valuation Office Agency website. You can access this website at the Council office reception.
The rateable value of your property is shown on your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date. The last revaluation that came into effect on 1st April 2010 uses information taken on 1st April 2008.
The valuation officer may alter the value if circumstances change. The ratepayer (and certain others who have an interest in the property) can appeal against the value shown in the list if they believe it is wrong.
Appealing your rateable value
To make an appeal against your rateable value you do not have to be represented by a rating adviser. The ratepayer (and certain others who have an interest in the property) can appeal against the rateable value of a property if they believe it is wrong. The appeals process is free and you can appeal online at:
- the Valuation Office Agency website.
If you wish to be represented, take great care when appointing a rating advisor. Check that they are knowledgeable and experienced and have appropriate indemnity insurance. Members of the following institutes are qualified and regulated by rules of professional conduct:
- Royal Institution of Chartered Surveyors (RICS) and
- the Institute of Revenues Rating and Valuation (IRRV).
If you make an appeal against your rateable value you must continue to pay your rates until a decision has been reached.
Multipliers for the rateable value
There are two multipliers which are set by the Government from 1 April each year. Your business rates bill is calculated by applying the appropriate multiplier to the rateable value. For the year starting 1 April 2016 the multipliers are:
- standard non-domestic rating multiplier 0.497
small business non-domestic rating multiplier 0.484
The Government normally changes the multiplier every year to move in line with inflation. By law, the multiplier cannot go up by more than the rate of inflation, except in the 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.
All rateable values are reassessed periodically at a general revaluation. The current rating list is based on the 2010 revaluation.
For those ratepayers who would otherwise have seen significant increases in their rates liability, the Government has put in place a £2 billion scheme to limit and phase in changes in rate bills as a result of the 2010 revaluation. To help pay for the limits on increases in bills, there were also limits on reductions in bills.
Under the transition scheme, limits continue to apply to yearly increases and decreases until the full amount is due.
The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to the property after 1 April 2010, transitional arrangements will not normally apply.
The original transition scheme was due to end 31 March 2015 however there are still a number of properties affected and so the Government has introduced a new scheme for properties with a rateable value of under £50,000. Under the new scheme transition is applied after any other relief.
The transitional arrangements are applied automatically and are shown on your bill.
For more information on revaluation 2010, please visit: