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Business rates and how they are calculated

Calculations explained

We calculate how much you have to pay by applying a rating multiplier to your rateable value and deducting any relief to produce your final bill.

Rateable value

The rateable value (set by the Valuation Office Agency) is normally based on the open market annual rent for your property. This figure is likely to be different to the rent you pay as it is a fixed valuation taken from a set date and open to government assumptions.

Rateable values are assessed by the Valuation Office Agency and published on their website. The current 2017 is based on rental values at 1 April 2015.

The next revaluation is due in 2023.

Rating multiplier

The rating multiplier is set annually by central government and cannot be raised by more than the increase in the retail price index, except in a revaluation year.

For 2021/22 multiplier rates are:

  • 51.2p - national non-domestic rate multiplier
  • 49.9p - small business multiplier

The small business multiplier is used for occupied properties with a rateable value of less than £15,000.

The multiplier rates remained unchanged from 2020/21.