Working from home, renting out a holiday home or providing bed and breakfast - you may have to pay business rates on your property
Every five years the rateable values of all 1.75 million business properties in England and Wales are reassessed. The most recent revaluation came into effect on 1 April 2005. Many ratepayers received details of their proposed new rateable value in the form of a summary valuation.
Your local authority calculates your business rates bill by multiplying the rateable value of your property by a factor set by central government (expressed as pence in the pound). This is known as the multiplier, or Uniform Business Rate (UBR). For example, in 2006/07 the multiplier is 42.6p (excluding the supplement to fund the Small Business Rate Relief). So, if the rateable value of your property is £10,000, your local authority would multiply it by 42.6p to get a total for the year of £4,260, before any rate relief is applied.
Every five years the VOA carries out a revaluation of all business properties – the most recent one came into effect on 1 April 2005. Any rise in your rateable value at revaluation does not necessarily mean your rates bill will rise too. This is because the multiplier is adjusted to make sure the total amount raised from ratepayers stays the same after allowing for inflation.
For example, your rateable value might increase from £11,000 to £12,000. If the total level of rateable value also goes up, because property values in general have risen, the multiplier will fall - for 2005/06 it fell from 45.6p to 41.5p (excluding the supplement to fund the Small Business Rate Relief). Between revaluations, the multiplier increases each year in line with inflation.
If your rates bill does rise significantly at revaluation, you may be protected by transitional arrangements. These limit the percentage by which a rates bill can increase or decrease in a single year.
Your local authority calculates the amount you should pay in business rates, adjusted to include any relief or transitional adjustment that you are entitled to.
For more information on the components of your bill, use the navigation on the left.
© 2004 mybusinessrates.gov.uk