How much are business rates?

how much is business rates

How we work out business rates bills

The amount of business rate you are charged is based on the 'rateable value' and a factor known as the 'multiplier'.

  • The rateable value is set by the Valuation Office Agency
  • The multiplier (rate in the pound) is set by the Government

The rateable value (RV)

  • The RV is based on the yearly rent that could be received for the property if it were let on the open market on 1 April 2008, which may not be the same as the rent you actually pay
  • The Valuation Office Agency (VOA), an agency of HM Revenues and Customs, is responsible for valuing properties. The latest valuation was effective

    from April 2010 and used the rental value effective 1 April 2008

Multiplier

  • The multiplier (rate in the pound) is set by central government each financial year
  • The multipliers cannot go up by more than the rate of inflation (apart from some minor adjustments to counteract losses from appeals and, in relation to the standard multiplier, to pay for small business rate relief)
  • The current multiplier will be shown on the front of your bill

Reductions

Your business rates can be reduced if you are entitled to the following:

  1. Transitional arrangements
  2. Small business rates relief
  3. Charitable and discretionary rate relief
  4. Empty property relief
  5. Retail relief

Source: www.royalgreenwich.gov.uk

Category: Personal Finance

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