Calculating business rates

Business rates, also known as national non-domestic rates (NNDR), help fund local services provided by councils, the police and fire and rescue services.

The amount of business rates payable is calculated using:

  • the rateable value, set by the Valuation Office; and
  • the multiplier, set by the government

Rateable value

The rateable value of your premises is shown on the front of your bill. This represents the annual rental value of the premises on the open market, on a particular date.

The rateable value is set by the Valuation Office Agency (VOA) (external website).

Appeals

If you believe your rateable value is wrong, you can appeal against it to the VOA.

Multipliers

We work out your business rates by multiplying the rateable value of the property by either:

  • the standard non-domestic rating multiplier; or
  • the small business non-domestic rating multiplier

The current multipliers are shown on the front of your bill.

The government sets these multipliers for each financial year in line with inflation. By law, these multipliers cannot go up by more than the rate of inflation (apart from minor adjustments to counteract losses from appeals and to pay for small business rate relief).

Transitional arrangements

We calculate any transitional relief you are entitled to and include this in your business rates bill.

Rateable values are reassessed every five years. Property values normally change between each revaluation, in line with rental values. Transitional arrangements help phase in the effects of these changes by limiting increases or decreases in bills. These limits set by the government represent the percentage by which your rates bill can change each year. As follows:

Limits on decreases to 2014/2015
YearSmall property (rateable value less than £18,000)Large property (rateable value £18,000 or more)
2010 to 2011 20 per cent 4.60 per cent
2011 to 2012 30 per cent 6.70 per cent
2012 to 2013 35 per cent 7 per cent
2013 to 2014 55 per cent 13 per cent
2014 to 2015 55 per cent 13 per cent
Limits on decreases 2015/2016 to 2016/2017
YearSmall property (rateable value less than £18,000)Medium property (rateable value between £18,000 and £50,000)Large property (rateable value £50,001 or more)
 2015 to 2016  0 per cent  0 per cent  0 per cent
 2016 to 2017  0 per cent  0 per cent  0 per cent
Limits on decreases 2017/2018 to 2021/2022
YearSmall property (rateable value less than £20,000)Medium Property (rateable value between £20,001 and £99,999)Large Property (rateable value £100,000 or more)
2017 to 2018 20 per cent 10 per cent 4.10 per cent
2018 to 2019 30 per cent 15 per cent 4.60 per cent
2019 to 2020 35 per cent 20 per cent 5.90 per cent
2020 to 2021 55 per cent 25 per cent 5.80 per cent
2021 to 2022 55 per cent 25 per cent 4.80 per cent
Limits on increases 2010/2011 to 2014/2015
YearSmall property (rateable value less than £18,000)Large property (rateable value £18,000 or more)
2010 to 2011 5 per cent 12.50 per cent
2011 to 2012 7.50 per cent 17.50 per cent
2012 to 2013 10 per cent 20 per cent
2013 to 2014 15 per cent 25 per cent
2014 to 2015 15 per cent 25 per cent
Limits on increases 2015/2016 to 2016/2017
YearSmall property (rateable value less than £18,000)Medium property (rateable value between £18,000 and £50,000)Large property (rateable value £50,001 or more) 
 2015 to 2016 15 per cent  25 per cent 0 per cent
2016 to 2017 15 per cent 25 per cent 0 per cent
Limits on increases 2017/2018 to 2021/2022
YearSmall property (rateable value less than £20,000)Medium Property (rateable value between £20,001 and £99,999)Large Property (rateable value £100,000 or more)
2017 to 2018 5 per cent 12.50 per cent 42 per cent
2018 to 2019 7.50 per cent 17.50 per cent 32 per cent
2019 to 2020 10 per cent 20 per cent 49 per cent
2020 to 2021 15 per cent 25 per cent 16 per cent
2021 to 2022 15 per cent 25 per cent 6 per cent

In addition your bill will increase each year in line with inflation and will include a supplement if you are not receiving Small Business Rate Relief.

Contact information

  • Telephone: 01494 412 226