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How your Business Rates are worked out

Your annual Business Rates bill is calculated and collected by the Council

The Council multiplies the rateable value of your property, which is set by the Valuation Office Agency, by a multiplier (the national non-domestic multiplier) which is set by central government. It is set for the whole of England and is effective from 1 April each year. The multiplier represents the number of pence in each pound of the rateable value that will be payable in business rates before any reliefs or discounts are applied. The calculation gives the amount of rates payable for the year.

The Government reviews the multiplier each year to reflect changes in inflation. By law, the multiplier cannot increase or decrease by more than the rate of inflation, except in the year of a revaluation. In that year it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year. Revaluations generally take place every five years. The latest revaluation took effect from 1 April 2017. The last revaluation was in April 2010.

Five yearly revaluations make sure each ratepayer pays their fair contribution and no more, by ensuring that the share of the national rates bill paid by any one ratepayer reflects changes over time in the value of their property relative to others.

The rateable value of a property is an assessment of the annual rent the property would rent for it it were available to let on the open market at a fixed valuation date.

  • Until 31 March 2017 rateable values were based on a valuation date of 1 April 2008.
  • From 1 April 2017 rateable values will be based on the valuation date of 1 April 2015.

Since the introduction of Small Business Rate Relief in April 2005 there have been two multipliers for each year, the standard national Non-Domestic Multiplier and the Small Business Multiplier.

The multipliers from 2010 onwards are shown below

YearNon-Domestic MultiplierSmall Business Multiplier
2010/1141.4 pence40.7 pence
2011/1243.3 pence42.6 pence
2012/1345.8 pence45.0 pence
2013/1447.1 pence46.2 pence
2014/1548.2 pence47.1 pence
2015/1649.3 pence48.0 pence
2016/1749.7 pence48.4 pence
2017/1847.9 pence46.6 pence

Transitional Phasing 2017 List

If the rateable value of your property changes significantly as a result of the revaluation, the changes in your rates bill will be phased in. We will include any transitional phasing automatically when calculating what business rates you should pay. The amount of relief will be shown on your bill, and will continue to apply each year until the full amount becomes due.

There are limits on how much your rates can increase or decrease.

Transitional relief only applies to the rateable value that was effective from 01 April 2017. If your rateable value is increased with an effective date of after 01 April 2017, the increase in rates will not be subject to transitional phasing and will be payable at the full amount (rateable value multiplied by the rate in the pound).

If your rateable value has increased as a result of the 2017 revaluation, the maximum amount your bill can increase by each year is:

Year

  Small Property

Rateable Value up to £20,000

       Medium Property

Rateable Value between £20,001 & £100,000

         Large Property

Rateable Value more than £100,000

2017/18

5%

12.5%

42%

2018/19

7.5%

17.5%

32%

2019/20

10%

20%

49%

2020/21

15%

25%

16%

2021/22

15%

25%

6%

If your rateable value has decreased as a result of the 2017 revaluation, the maximum amount your bill can decrease by each year is:

 Year

          Small Property

Rateable Value up to £20,000

                     Medium Property

Rateable Value between £20,001 & £100,000

                 Large Property

Rateable Value more than £100,000

2017/18

20%

10%

4.1%

2018/19

30%

15%

4.6%

2019/20

35%

20%

5.9%

2020/21

55%

25%

5.8%

2021/22

55%

25%

4.8%

The final figure will be adjusted by the annual rate of inflation.