Business rates: what they are and what they pay for

Business Rates – or Non-Domestic Rates, as they’re also known – are the way those who occupy non-domestic property help pay for local services.

Business Rates are charged on most non-domestic properties, like:

• shops
• offices
• pubs
• warehouses
• factories
• holiday rental homes or guest houses 

You’ll probably have to pay Business Rates if you use a building or part of a building for non-domestic purposes.

Local authorities keep a proportion of the business rates to pay for the services we provide, such as:

• street lighting
• improving public spaces
• keeping streets clean and safe.

A proportion goes to central Government and some is given to the Greater London Authority to pay for other services, such as police and fire services.

Rateable value

Each non-domestic property, apart from those exempt from Business Rates, is given a rateable value by the Valuation Office Agency (VOA). Your property's rateable value is shown on your bill. The rateable value estimates the yearly rent the property could have been let for on the open market on a particular date. 

Appealing your rateable value

The valuation officer may alter the value if circumstances change. The ratepayer (and certain others who have an interest in the property) can appeal against the value shown in the list if they believe it is wrong. Full details on your rights of appeal are available from the Valuation Office Agency.

Find out more and how to appeal on GOV.UK.

Multiplier

The local authority works out the business rates bill by multiplying the rateable value of your property by the appropriate multiplier. There are two multipliers:

• standard
• small business.

The standard rate is higher to help pay for small business rate relief. Except in the City of London where special arrangements apply, the Government sets the multipliers for each financial year for the whole of England according to legislation.

The current multipliers are shown on the front of your bill.