Business rates explained
Your business rates are worked out each year by taking a property's rateable value and multiplying it by the 'multiplier' which is a figure set by the government.
What rateable value means
All properties which aren't homes have a rateable value as a way of measuring how valuable the property is.
The rateable value is an estimate of how much yearly rent the property could earn on a particular date. The date of valuation is set by the government. A new Valuation List comes into effect on 1 April 2026 and it uses rental figures as at 1 April 2024. The last valuation date prior to that was 1 April 2023.
You can read more about the 2026 Revaluation at the following link:
Business rates revaluation 2026 - GOV.UK
Rateable values are calculated by the Valuation Office Agency, who are part of HM Revenues and Customs.
How the multiplier works
The business rates bill for a property is calculated by multiplying the rateable value of the property by the appropriate non-domestic multiplier. From April 2026 there will be five multipliers. Government sets the multipliers for each financial year.
In 2026/27 the multipliers are as follows:
Category | Rateable Value (RV) | Multiplier |
Small Business RHL | Below £51,000 | 38.2p |
Standard RHL | £51,000 - £499,999 | 43.0p |
Large (All Properties) | £500,000 and above | 50.8p |
Small Business (Non-RHL) | Below £51,000 | 43.2p |
Standard (Non-RHL) | £51,000 - £499,999 | 48.0p |
RHL refers to Retail, Hospitality and Leisure. The Small and Standard Retail and Hospitality multipliers replace the Retail Hospitality and Leisure Business Rates Relief scheme that ends on 31 March 2026. Information about the occupied properties that are eligible for the Small and Standard RHL multiplier can be found here:
Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure - GOV.UK
If you occupy a non RHL property with a rateable value of £100,000.00 we would multiply that amount by 48.0p, so your bill for the year would be £48,000.
How the rateable value can change
The rateable value of a property may change if any physical changes are made to the building your business is in, for example if you built or demolished an extension.
Check, Challenge and Appeal
You have the right to check, challenge and appeal your rateable value with the Valuation Office Agency if you think it's too high. You can do this even if there haven't been any changes to the property or your business.
To do this please contact the local Valuation Office Agency on 03000 501501 or through their website at www.gov.uk/correct-your-business-rates
The Valuation Office also publish useful information via their You Tube channel at www.youtube.com/user/voagovuk
For more information on business rates visit Business rates at gov.uk or read our Business rates explanatory notes 26/27 (PDF, 416 KB)
