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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 and is currently the 1 April 2017.

The next valuation will be in 2023. 

Read more about the 2017 revaluation on 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. 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 who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to certain other mandatory relief[s] or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.

For 2022/23:

  • The national non-domestic multiplier is : 51.2 (0.512)
  • The small business non-domestic multiplier is: 49.9p (0.499)

If your rateable value was £100,000.00 we would multiply that amount by 51.2p, so your bill for the year would be £51,200.

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 

For more information on business rates visit Business rates at gov.uk or read our  Business rates explanatory notes [185KB]