Business Rates (also known as Non-Domestic Rates) are a tax charged on properties that are used wholly or partly for business purposes.
They apply to a wide range of commercial premises, including offices, shops, dental practices, cafés, pubs, warehouses, and factories.
Business Rates are collected by local authorities and help fund local services.
Business Rates are calculated using a simple formula set by the Valuation Office Agency (VOA):
Rateable Value × Multiplier = Business Rates payable
Understanding each part of this calculation can help you estimate your annual Business Rates bill.
Your Rateable Value (RV) is set by the VOA. It represents the estimated annual rent your property could have achieved on the open market at a specific valuation date.
The most recent valuation date was 1 April 2017
Revaluations typically take place every five years
RVs are based on factors such as property size, location, and use
You can check the Rateable Value of your property on the VOA website.
Once your Rateable Value is confirmed, it is multiplied by a government-set multiplier to calculate your initial Business Rates liability.
There are two multipliers:
Small Business Multiplier – for properties with an RV below £51,000
Standard Business Multiplier – for properties with an RV of £51,000 or more
Example Calculations
RV × Small Business Multiplier = Estimated Business Rates
RV × Standard Business Multiplier = Estimated Business Rates
Current multipliers are published annually by the government.
Your final Business Rates bill may be lower if you qualify for one or more Business Rate Reliefs.
Common reliefs include:
Small Business Rate Relief
Transitional Relief
Rural Rate Relief
Charitable Rate Relief
Empty Property Relief
If eligible, the value of any relief is deducted from your initial Business Rates calculation.
Rateable Value × Multiplier − Relief = Final Business Rates payable
A full list of available reliefs and eligibility criteria can be found here.
Understanding Business Rates can be complex, and many businesses end up paying more than they should. That’s where Business Rates Solutions comes in.
We specialize in helping businesses across the UK reduce their Business Rates liability by ensuring their property is accurately assessed and that all available reliefs are applied.
