The amount of rates that a business has to pay is worked out by multiplying the rateable value of the property, by the rating multiplier figure, and applying any transitional relief or other reductions that may apply. These calculations will be shown on the bill. There is a brief explanation of rateable value, rating multiplier and transitional relief below. There are also various other ways of reducing the bill and these are detailed on the Reductions page.
The Valuation Office Agency, which is part of the Inland Revenue, sets the rateable value of a property. The rateable value is shown on the front of the bill. The figure broadly represents the yearly rent that a property could have been let for in the open market on a particular date.
For the revaluation that came into effect on 1 April 2017, this date was 1 April 2015. You can find more information on how rateable value is calculated by visiting the Valuation Office Agency website. The valuation officer may alter the value if the circumstances of the property have changed.
Appeals and Advice
If you think the rateable value of your property is wrong, you can appeal to the valuation office agency. For further information about appeals visit the Valuation Office Agency website.
You do not have to be represented in discussions about your rateable value or your rates bill, just contact us, or the Valuation Office Agency. If you wish to make an appeal against rateable values you can do it free of charge.
However if you do wish to be represented, you should be aware that members of the Royal Institution of Chartered Surveyors (RICS) and the Institute of Revenues Rating and Valuation (IRRV), are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. You can get further information by visiting the RICS website.
Before you employ a rating adviser, you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.
The rating multiplier is a figure set by the Government each year. This is normally changed each year in line with inflation. From 1 April 2010 there are two multipliers; the standard multiplier and the small business rates multiplier.
- 2021 to 2022: 51.2pm (standard multiplier) 49.9p (small business multiplier)
- 2022 to 2023: 51.2pm (standard multiplier) 49.9p (small business multiplier)
- 2023 to 2024: 51.2pm (standard multiplier) 49.9p (small business multiplier)
The amount of the multipliers is shown on the front of the bill. More information on multipliers and Small Business Rates Relief can be found at the Businesslink website. More information on Small Business Rates Relief can be found on the Reductions page.
The transitional relief scheme was introduced by the government, as a method of phasing in the effect of the 5 yearly revaluation of rateable values, by limiting the increases or decreases in business rates bills. From 1 April 2023 the transitional relief scheme will be amended to follow the new 3 yearly revaluation period.
The limits apply until the full amount is due (rateable value times the appropriate multiplier). The scheme applies only to the bill based on a property at the time of the revaluation.
If there are any changes to the property after revaluation, transitional arrangements will not normally apply to the part of a bill that relates to an increase in rateable value due to those changes.
You do not need to apply for transitional relief. If you qualify, it will be automatically awarded, when we calculate your bill.
You can find more information about transitional relief, including examples of how it works, by visiting the Businesslink website. Further information about ways to reduce your bill can be found on the Reductions page.