How your Business Rates are calculated
Your annual Business Rates bill is calculated and issued by the Council.
The Council multiplies the rateable value of an individual property, which is set by the Valuation Office Agency (VOA), by the national non-domestic multiplier set by central government. It is set for the whole of England and is effective from 1st April each year. 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 multipliers for 2018 - 2019 are:
Standard Multiplier: 49.3p
Small Business Multiplier: 48p
The Small Business Multiplier is applicable to properties with a rateable value of less than £51,000.
The Government reviews the multiplier each year to reflect changes in inflation. By law, the multiplier cannot increase or decrease by more than the rate of inflation, except in the year of a revaluation. In that year 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.
There is a revaluation every five years. All rateable values are reassessed at a general revaluation to ensure bills paid by any one ratepayer reflect changes over time in the value of their property relative to others. This helps maintain fairness in the rating system by updating valuations in line with changes in the market. The current rating list is based on the 2017 revaluation.
Which agency does what?
The VOA sets the rateable value on which your rates are based. The Government sets the multiplier and makes national rules about Business Rates. Your Council bills and collects Business Rates on behalf of central government.
Estimate your bill
You can estimate your Business Rates bill by following the guide on the GOV.UK website. Your exact liability will be on your Business Rates bill from the Council.
- More information about Business Rates and how bills are calculated is available on the GOV.UK website
- Rateable Values and how to appeal if you think yours is wrong
- Your Business Rates bill explained – this example bill explains what the different parts of your Business Rates bill mean