How Your Bill is Calculated
Rateable Value
Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the HMRC Valuation Office. They compile and maintain a full list of all rateable values, available at GOV.UK - Valuation Office Agency. 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 2024.
The Valuation Office may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they 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 Valuation Office, or by consulting the GOV website: GOV.UK - How to challenge your business rates valuation.
Business Rates Multipliers
The local authority works out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier.
Following the passing of the Non-Domestic Rating (Multipliers and Private Schools) Act 2025, from 1 April 2026, the system of calculating bills changed, moving from 2 multipliers to 5 multipliers.
This new system is designed to deliver permanent support for those properties used for qualifying Retail, Hospitality and Leisure properties, replacing the previous relief schemes which were granted annually.
The new system has also been designed to increase contributions for larger businesses, such as distribution warehouses occupied by online giants, who occupy properties with the highest rateable values.
The Non-Domestic Rating (Definition of Qualifying Retail, Hospitality or Leisure Hereditament) Regulations 2025 determines that the Retail, Hospitality or Leisure (RHL) multipliers will only apply to occupied hereditaments which are “wholly or mainly” used for a qualifying purpose. In determining eligibility, local authorities will need to consider what the main use of the hereditament is based on the governments guidance: GOV.UK - Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure.
For the 2026/27 year there are five multipliers:
| Property classification and rateable value | 2026-27 multiplier |
|---|---|
| Small business RHL multiplier, RHL properties only, RV below £51,000* | 38.2p |
| Small business multiplier, non-RHL properties, RV below £51,000 | 43.2p |
| Standard RHL multiplier, RHL properties only, RV £51,000-£499,999* | 43.0p |
| Standard multiplier, non-RHL properties, RV £51,000-£499,999 | 48.0p |
| High-value multiplier, all properties, RV £500,000 and above | 50.8p |
Please see the Business Rates - Previous Years Multipliers (PDF) for more information about previous years' business rates multipliers.
If you have any questions regarding the payment of your business rates, or if you think you may be entitled to business rates relief, please Contact Us.