Explanatory notes about your 2024-2025 business rates bill
Business 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. The money, together with revenue from council tax payers, locally generated income and grants from central government, is used to pay for the services provided by us. Further information about the business rates system may be obtained at GOV.UK, or on our website.
Business rates instalments
Payment of business rates bills is automatically set on a 10-monthly cycle. However, the Government has put in place regulations that allow ratepayers to request us to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should 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 standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The Government sets the multipliers for each financial year, except in the City of London where special arrangements apply.
If you occupy a property with a rateable value which does not exceed £50,999 your bill is calculated using the lower small business non-domestic rating multiplier. If you occupy a property with a Rateable Value of £51,000 or more your bill is calculated using the standard non-domestic rating multiplier.
The multipliers for a financial year are set by central government. The current multipliers are shown on the front of your bill.
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, available at the GOV.UK website. 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. You (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if you believe it is wrong. Further information about the grounds on which challenges may be made and the process for doing so can be obtained by contacting the VOA, or by consulting the VOA website.
Revaluations
All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1 April 2023 and the next one is due is 2026. 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 (i.e. a reduction in your business rates bill). There are a range of available reliefs. Further details are provided below and at GOV.UK, or on our website.
Temporary reliefs
Some of the permanent reliefs are set out below but other temporary reliefs may be introduced by the Government at a fiscal event. Further detail on current temporary reliefs is available at GOV.UK. Visit our website for details on the latest availability of business rates reliefs and advice on whether you may qualify.
Small business rate relief
If your sole or main property has a rateable value which does not exceed a set threshold, you may receive a percentage reduction in your rates bill for the property of up to a maximum of 100%. The level of reduction will depend on the rateable value of the property. For example eligible properties with a rateable value below a specified lower threshold will receive 100% relief while eligible properties above the lower threshold and below a specified upper threshold may receive partial relief. The relevant thresholds for relief are set by the Government by order and can be obtained from us or at GOV.UK.
Generally, these percentage reductions (reliefs) are only available to ratepayers who occupy either:
- one property, or
- one main property and other additional properties providing those additional properties each have a rateable value which does not exceed the limit set by order.
The aggregate rateable value of all the properties mentioned in (b), must also not exceed an amount set by order. If you take on an additional property which would normally have meant the loss of small business rate relief, you will be allowed to keep that relief for a fixed additional period. Full details on the relevant limits in relation to second properties and the current period for which you may continue to receive relief after taking on an additional property can be obtained from us or at GOV.UK.
Certain changes in circumstances will need to be notified to us by you. The changes which should be notified are:
- the property falling vacant,
- you taking up occupation of an additional property, or
- an increase in the rateable value of a property occupied by you in an area other than our area.
Charity and Community Amateur Sports Club relief
Charities and registered Community Amateur Sports Clubs are entitled to 80% 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 have discretion to give further relief on the remaining bill. Full details can be obtained from us.
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. Further information about transitional arrangements may be obtained from us or at GOV.UK.
Rate relief for businesses in rural areas
Certain types of properties in a rural settlement with a population below 3,000 may be entitled to a relief. The property must be the only general store, the only post office or a food shop and have a rateable value of less than £8,500, or the only public house or the only petrol station and have a rateable value of less than £12,500. The property has to be occupied. Full details can be found on our website.
Local discounts and hardship relief
We have a general power to grant discretionary local discounts and to give hardship relief in specific circumstances. Full details can be obtained from us.
Unoccupied property rating
Business rates are generally payable in respect of unoccupied non-domestic property. However, they are generally not payable for the first three months that a property is empty. This is extended to six months in the case of certain industrial premises, whilst certain other properties such as vacant listed buildings are not liable for business rates until they are reoccupied. Full details on exemptions can be found on our website or at GOV.UK.
Subsidy control
The new UK subsidy control regime commenced from 4 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 the GOV.UK website.
Rating advisers
You do not have to be represented in discussions about the rateable value of your property or your rates bill. However, those who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors and the Institute of Revenues, Rating and Valuation 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 relating to the relevant and previous financial years in regard to the gross expenditure of the local authority is available on our website.
A hard copy is available on request by writing to us or by calling us on 01553 616200.