How Are Business Rates Calculated?
Business rates are calculated by:
- the 'rateable value' of your property (set by the Valuation Office Agency)
- the 'rate multiplier' (set by the government)
You can estimate your business rates by going to Gov.UK, Estimate Your Business Rates
What Is the Rateable Value?
The rateable value of your property is calculated by considering how much it would cost to rent in the open rental market at a fixed valuation date, usually every 5 years. This is called Revaluation. This is done to reflect changes in the property market and does not raise extra income.
The latest revaluation is effective from 1 April 2017, and the last valuation took place in April 2010.
What Is the Rate Multiplier?
There are two rate multipliers. The first is called the 'small business multiplier' which applies to businesses with a rateable value of less than £51,000. The second rate multiplier applies to all other businesses.
To find out what the current rate multipliers are visit: Valuation Office Agency, What Are the Current Multipliers?