How we work out your business rates
Business rates are collected by local authorities to enable those who occupy non-domestic property to contribute towards the cost of local services. The amount you have to pay is based on your property's 'rateable value'.
We use the rateable value and the business rates 'multiplier' to work out how much you owe.
How rateable value works
The Valuation Office Agency (VOA) calculates the rateable value. It's usually based on the:
- Rental value of the property
- Size of the property
- Type of business
The rateable value is shown on the front of your bill.
You can check the rateable value of your property using the GOV.UK link below for finding a business rates valuation.
How we use the multiplier
The multiplier is the amount your rateable value is multiplied by to get your final bill. Currently there are five multipliers. These will reflect both business type and property value. The five new multipliers will apply as follows:
- Small business RHL multiplier 38.2p: Retail, hospitality and leisure (RHL) businesses with rateable values (RV) below £51,000
- Small business multiplier 43.2p: Non-RHL businesses with RV below £51,000
- Standard RHL multiplier 43.0p: RHL businesses with RV between £51,000 and £499,999
- Standard multiplier 48.0p: Non-RHL businesses with RV between £51,000 and £499,999
- Large property multiplier 50.8p: For all properties with RV of £500,000 and above
How revaluation works
The VOA regularly updates the rateable values of all business and other non-domestic properties in England and Wales to reflect changes in the property market. This is called a ‘revaluation’.
The most recent revaluation came into effect in England and Wales on 1 April 2023. It is based on rateable values from 1 April 2021.
The next revaluation is due to come into effect on 1 April 2026, this will be based on rental values of 1 April 2024. The revaluation will also introduce a new transitional relief scheme to phase in large RV increases.