How Business Rates are calculated

How do we work out the rateable values?

We calculate business rates each year by taking a property's rateable value and multiplying it by the 'multiplier' set by the government each year. If you think your rateable value is too high you have the right to appeal.

What does rateable value mean?

All business properties which aren't homes are given a rateable value, as a way of measuring how valuable each property is.

This is an estimate by the Valuation Office Agency of how much it would cost to rent a property for a year on 21 April 2021. There’s guidance on how to calculate your business rates on the GOV.UK website.

The rateable value is an estimate of how much yearly rent the property could have earned on a particular date. Currently, the date is April 2021 for the current revaluation that took place 1 April 2023.

Revaluation

Revised rateable values come into effect from 1 April 2023. The next revaluation will be in three years

Rateable values aren't set by the council but by the Valuation Office Agency, which is part of HM Revenues and Customs.

The multiplier

Each year on 1 April the multiplier is changed by the government depending on the level of inflation.

In 2024/25 the multiplier is 0.546, so if your rateable value was £100,000 we would multiply this by 0.546p and your bill would be £54,600.

Business rate multipliers for each financial year 2017/18 to 2024/25

2024/25

• Small business rate multiplier 0.499
• Standard rate multiplier 0.546

2023/24

• Small business rate multiplier 0.499
• Standard rate multiplier 0.512

2022/23

• Small business rate multiplier 0.499
• Standard rate multiplier 0.512

2021/22

• Small business rate multiplier 0.499
• Standard rate multiplier 0.512

2020/21

• Small business rate multiplier 0.499
• Standard rate multiplier 0.512

2019/20

• Small business rate multiplier 0.491
• Standard rate multiplier 0.504

2018/19

• Small business rate multiplier 0.480
• Standard rate multiplier 0.493

2017/18

• Small business rate multiplier £0.466
• Non-domestic rate multiplier £0.479

Changes to the rateable value

The rateable value may change if any physical changes are made to your property, for example building or demolishing an extension. Please ensure that you tell us about any changes as soon as possible.

Appeal about your rateable value

You have the right to appeal to the Valuation Office Agency about your rateable value if you think it's too high, even if there haven't been any changes to the property or your business.

More information on Business Rates is available via Gov.uk - Business Rates Guidance Alternatively, you can contact the local Valuation Office Agency on 03000 501501.

You can find out more about grounds for an appeal and how the process works on the Gov.uk - Business Rates Appeals page