Business Rates - How They Are Calculated
We work out your Business Rates bill by multiplying the rateable value of the property by the appropriate multiplier
Before the start of each financial year the Government sets two multipliers for the whole of England; the Standard Rating Multiplier and the Small Business Multiplier.
The Government normally changes both multipliers each year in line with inflation. However, the multipliers cannot go up by more than the rate of inflation apart from some minor adjustments to counteract losses from appeals and, in relation to the standard multiplier, to pay for small business rate relief.
In the year of a revaluation, the standard multiplier 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. The current multipliers are shown on the front of your bill.
The Standard Rating Multiplier for 2015/2016 is 49.3p and the Small Business Rate Multiplier is 48.0p.
Apart from properties that are exempt from Business Rates, each non-domestic property has a rateable value set by the Valuation Office Agency which compiles and maintains a full list of all rateable values.
The rateable value of your property is shown on the front of your bill. The rateable value broadly represents the yearly rent the property could have been let for on the open market on a particular date. For the revaluation that came into effect on 1 April 2010, this date was set as 1 April 2008.
Rateable values are reassessed, or revalued, every five years to bring them in line with current market values. However, the next revaluation will not come info effect until 1 April 2017.
The Rating List and further details about rateable values is available from the Valuation Office Agency.
Estimate your bill
You can estimate your Business Rates bill using the estimator here, see GOV.UK - Estimate your business rates.
Any figures that the estimator provide are only estimates. Your exact liability will be on your Business Rate bill from the Council.