How business rates are worked out
The amount of business rates you pay is decided by the government. We carry out the billing, collection of funds and enforcements if the bills are not paid.
All the rates we collect are paid into a central ‘pool’, which is controlled by the government and redistributed to councils in the form of a grant. The amount each council receives depends on their resident adult populations and the services for which they are responsible.
The amount you pay will depend on many different aspects:
- the value of your property
- the business rate multiplier
- transitional arrangements
- relief or discounts you may be able to claim
Your business rate bill is worked out by multiplying the rateable value of your property using the appropriate business rate multiplier. Based on the rateable value history, some properties can be subject to transitional arrangements – this can help to reduce your bill.
The value of your property
The government’s Valuation Office Agency assesses each non-domestic property for business rates and gives them ‘rateable value’. This forms the basis on which your business rates are calculated.
To understand why your property has a certain rateable value, please visit the VOA website ‘How business rates are calculated’.
You can find out about the latest assessment for non-domestic properties, your rateable value and the local rating list on the Valuation Office Agency’s website.
Business rate multiplier
This is set annually by the Secretary of State and except in a revaluation year, the multiplier may not increase by more than the rate of increase in the Retail Price Index.
The multiplier for 2023/2024 has been set at 51.2 pence in the pound for the standard non-domestic rating multiplier, and 49.9 pence in the pound for the small business non-domestic rating multiplier. For 2022/2023 it was 51.2p (standard) and 49.9p (small business).
More information about calculating your business rates can be found on the government’s website.