Explanatory notes with business rates bills

Non-domestic rates

Non-domestic rates, or business rates, collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services. Under the business rates retention arrangements introduced from 1 April 2013, we keep a proportion of the business rates paid locally. We use this money, together with revenue from council tax payers, locally generated income and grants from central government, to pay for the services we provide. You can find further information about the business rates system at GOV.UK.

Business rates instalments

Payment of business rates bills is automatically set on a 10-monthly cycle. However, by law you can request payments to be made through 12 monthly instalments. If you wish to take up this offer, please contact us as soon as possible.

National non-domestic rating multiplier

We work out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier. There are two multipliers: the national non-domestic rating multiplier and the small business non-domestic rating multiplier. The government sets the multipliers for each financial year. Ratepayers of a property with a rateable value which does not exceed £50,999 will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier. Both multipliers for a financial year are based on the previous year’s multiplier, adjusted to reflect the Consumer Price Index (CPI) inflation figure for September prior to the billing year, unless a lower multiplier is set by the government.

For 2024/25:

  • the non-domestic rating multiplier is 54.6p (0.546)
  • the small business non-domestic rating multiplier is 49.9p (0.499)

Rateable value

Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the Valuation Office Agency (VOA), an agency of His Majesty's Revenue and Customs. They compile and maintain a full list of all rateable values. The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date specified in legislation. For the current rating list, this date was set as 1 April 2021. The VOA may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong. Contact the VOA for further information about challenging a valuation.

Revaluations

All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation was 1 April 2023. Revaluations ensure that business rates bills are up-to-date and more accurately reflect current rental values and relative changes in rents. Frequent revaluations ensure the system continues to be responsive to changing economic conditions.

Business rate reliefs

Depending on individual circumstances, you may be eligible for a rate relief (a reduction in your business rates bill). There are a range of available reliefs. Some of the permanent reliefs are set out below, but temporary reliefs are often introduced by the government at Budgets. Contact us at [email protected] or 01242 264255 for details on the latest availability of business rates reliefs and advice on whether you may qualify. For further information visit the introduction to business rates pages on GOV.UK.

Small business rates relief

If your sole or main property has a rateable value which does not exceed an amount set out in regulations, you may receive a reduction in your rates bill for this property of up to a maximum of 100 per cent. The level of reduction will depend on the rateable value of the property. For example, eligible properties below a specified lower threshold will receive 100 per cent relief, and you may receive partial tapered relief up to a specified upper threshold. The relevant thresholds for relief are set out in regulations. Please contact us for details or visit the introduction to business rates pages on GOV.UK.

Generally, this percentage reduction (relief) is only available to ratepayers who occupy either:

  • (a) one property, or
  • (b) one main property and other additional properties, providing those additional properties each have a rateable value which does not exceed the limit set in regulations

The total rateable value of all the properties mentioned in (b) must also not exceed an amount set in regulations. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, they will be allowed to keep that relief for a fixed additional period. Please contact us for details on the relevant limits in relation to second properties and the current period for which a ratepayer may continue to receive relief after taking on an additional property or visit the introduction to business rates pages on GOV.UK.

You will need to notify us of certain changes in circumstances (other changes will be picked up by us). The changes which should be notified are:

  • (a) the property falls vacant
  • (b) the ratepayer occupies an additional property
  • (c) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief

Charity and community amateur sports club relief

Charities and registered community amateur sports clubs are entitled to 80 per cent relief where the property is occupied by the charity or the club and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs). We can decide to give further relief on the remaining bill. Please contact us for further details.

Unoccupied property rate relief

Business rates usually need to be paid for unoccupied non-domestic property. However, they don't usually need to be paid for the first three months that a property is empty. This is extended to six months in the case of certain industrial premises. Vacant listed buildings are not liable for business rates until they are reoccupied. Please contact us for further detail on exemptions or visit the business rate relief application page at GOV.UK.

Transitional rate relief

At a revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases. Transitional relief schemes are introduced at each revaluation to help those facing increases. Transitional relief is applied automatically to bills. For further information about transitional arrangements and other reliefs please contact us or visit the introduction to business rates pages on GOV.UK.

Local discounts and hardship relief

We have a general power to grant discretionary local discounts and to give hardship relief in specific circumstances. Contact us for full details.

State aid or subsidy control

The new UK subsidy control regime started in January 2023. The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities giving subsidies must comply with the UK’s international subsidy control commitments. The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime. Further information about subsidy control can be found on GOV.UK.

Rating advisers

Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS) and the Institute of Revenues, Rating and Valuation (IRRV) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating adviser or company you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.

Information supplied with demand notices

Information on council budgets and spending is published on our website. You can also contact us to request a hard copy.