How we work out your business rates
Business rates are collected by local authorities to enable those who occupy non-domestic property to contribute towards the cost of local services. The amount you have to pay is based on your property's 'rateable value'.
We use the rateable value and the business rates 'multiplier' to work out how much you owe.
How rateable value works
The Valuation Office Agency (VOA) calculates the rateable value. It's usually based on the:
- rental value of the property
- size of the property
- type of business
The rateable value is shown on the front of your bill.
You can check the rateable value of your property on GOV.UK
How we use the multiplier
The multiplier is the number your rateable value is multiplied by to get your final bill. There is a:
- standard business multiplier
- small business multiplier – for properties with a rateable value below £51,000
You can check the current multiplier and estimate your business rates online (GOV.UK).
From 1 April 2024, the small business multiplier will by default apply to all hereditaments with a rateable value below the multiplier threshold (currently £51,000). This includes properties occupied by charities and unoccupied properties, which currently do not qualify for the small business multiplier.
How revaluation works
The VOA regularly updates the rateable values of all business and other non-domestic properties in England and Wales to reflect changes in the property market. This is called a ‘revaluation’.
The most recent revaluation came into effect in England and Wales on 1 April 2023. It is based on rateable values from 1 April 2021.