What are business rates & how is a business rates bill calculated?
Business rates are a local tax paid by the occupiers of all non-domestic or business property, in the same way that council tax is a tax on domestic property.
Business rates are charged on most business properties such as shops, offices, pubs, warehouses and factories.
The Valuation Office Agency sets the Rateable Value of business premises by using property details such as rental information or trade details. Rateable value, broadly speaking, is the annual rental value that a property could be let for on a common valuation date.
Billing Authorities use the rateable value and the business rates multiplier (set by central government) to calculate business rates bills.
The Rateable Value for your non-domestic or business property is periodically reviewed in a process known as revaluation. Revaluation aims to maintain fairness in the rating system by ensuring that the rates that each business pays reflect changes in the relative rental value of property over time.
Non-domestic rates, or business rates, are collected by local councils and are the means by which businesses and others who occupy non-domestic property make a contribution towards the cost of local services.