What are business rates (NNDR)?
Business rates, or national non-domestic rates, is a local tax that is paid by the occupiers of all non-domestic /business property, in the same way that council tax is a tax on domestic property. Business rates are the way that those who occupy or own non-domestic property contribute towards the cost of local services.
Business rates are charged on most business properties such as shops, offices, pubs, warehouses and factories. However, the property doesn't have to be used for a business - if it is used for purposes which are not domestic it is likely to be rateable. We will send you a business rates bill each year.
Under the business rates retention arrangements introduced from 1st April 2013, the council keep a proportion of the business rates paid locally. The money, together with revenue from council tax payers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by the council in your area.
Further information about the business rates system may be obtained at GOV.UK: Business rates
Roles and responsibilities
- The Valuation Office Agency (VOA) sets the rateable value of business premises by using property details such as rental information.
- The local authority works out the Business Rates bill by multiplying the Rateable Value by the business rates multiplier
What is the Rateable Value?
The rateable value is assessed by the Valuation Office Agency, which is an agency of HM Revenue and Customs.
A property's rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date.
- Until 31 March 2017, the rateable values will be based on a valuation date of 1 April 2008.
- From 1 April 2017, the rateable values will be based on the valuation date of 1 April 2015.
If you think your rateable value is incorrect, you can find and view your property details here: gov.uk/Find and check your business rates valuation
Non-domestic rating multiplier
The non-domestic rating multiplier is a fixed amount set by Central Government each year and normally changes every year in line with inflation.
There are two multipliers:
- The standard multiplier for 2018/19 is 49.3 pence
- The small business multiplier for 2018/19 is 48.0 pence
The multipliers for the 2017/18 financial year were 47.9 pence and 46.6 pence respectively.
The multipliers for the 2016/17 financial year were 49.7 pence and 48.4 pence respectively.
When the rateable value is multiplied by the non-domestic rating multiplier, this gives the basic amount you have to pay for the financial year.
This figure could be further adjusted as a result of any relief you may be entitled to (for example, ratepayers entitled to small business rate relief have a lower multiplier). See our Rate Relief page for more information.