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 and are based on the Rateable Value (RV) of a property.
The Valuation Office Agency (VOA) sets the Rateable Value (RV) of the business premises by using property details such as rental information or trade details. The RV is the VOA’s estimate as to the rental value of the property at a fixed valuation date.
Billing Authorities use the Rateable Value and the business rates multiplier (set by central Government) to calculate business rates bills.
The revaluation is carried out by the Government, and it’s aim is to maintain fairness in the rating system by ensuring that the rates that each business pays, reflect the changes in the relative rental value of the 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.
To calculate your annual bill, the RV is multiplied by the Uniform Business Rate (UBR) which changes each year with inflation. The current UBR is 0.512, so a property with a Rateable Value of £100,000 would give rise to an annual rates bill of £51,200 (£100,000 x 0.512).