Business Rates (NNDR) explained

Business rates, or national non-domestic rates, is a local tax that is paid by the occupiers of all non-domestic / business property, in the same way that council tax is a tax on domestic property.

Business rates are the way that those who occupy or own non-domestic property contribute towards the cost of local services.

Business rates are charged on most business properties such as shops, offices, pubs, warehouses and factories.

However, the property doesn't have to be used for a business - if it is used for purposes which are not domestic it is likely to be rateable.

We will send you a business rates bill each year.

Under the business rates retention arrangements introduced from 1 April 2013, the council keep a proportion of the business rates paid locally. The money, together with revenue from council tax payers, revenue support grant provided by the government and certain other sums, is used to pay for the services provided by the council in your area.

For more information about the business rates system, see GOV.UK: Business rates

The occupier of a non domestic property normally pays the business rates. Usually this is the owner-occupier or leaseholder. If the property is empty, the person entitled to possession will be liable for the unoccupied charge.

Paying business rates when you work from home

You don't usually have to pay business rates for home-based businesses if you:

• use a small part of your home for your business, for example if you use a bedroom as an office
• sell goods by post

You may need to pay business rates as well as Council Tax if:

• your property is part business and part domestic, for example if you live above your shop
• you sell goods or services to people who visit your property
• you employ other people to work at your property
• you've made changes to your home for your business, for example converted a garage to a hairdresser

To find out if you should be paying business rates, contact the Valuation Office Agency.

Payment of business rate bills is automatically set on a 10 monthly cycle. However, with effect from the 2014-15 financial year, the Government announced that businesses can ask for their business rate bills to be spread over 12 monthly instalments to help with cash flow. If you wish to take up this offer, you should contact the business rates section as soon as possible.

Reminders / summons 

By law, the Council must send a reminder if your instalments are not up to date. If you do not bring them up to date within seven days you can lose the right to pay by instalments and, after a further seven days, you will receive a summons to appear at court.

If you receive a summons and do not pay in full before the hearing the Council will apply for a liability order together with court costs. The liability order grants the Council the right to use various methods to recover the outstanding debt.

After you have received a summons

Once a summons is issued you lose the right to pay by instalments and costs are incurred.

The Council will not apply for a liability order if the full amount outstanding is paid before the Liability Order hearing. 

Even if a payment arrangement is made the Council still has to get the liability order, at which time further costs are incurred but it will not take any of the actions the liability order allows as long as you keep to the arrangements we have made with you.

You should inform the business rates team of your change in circumstances.

Business rates will not be payable in the first three months that a property is empty. This is extended to six months in the case of certain industrial properties. In most cases, after this period rates are payable in full unless the unoccupied property rate has been reduced by the Government by order. There are a number of exemptions from unoccupied rating. Further details can be obtained from the local authority.

• The Valuation Office Agency (VOA)  sets the rateable value of business premises by using property details such as rental information.
• The local authority works out the Business Rates bill by multiplying the Rateable Value by the business rates multiplier

Rateable Value

The rateable value is assessed by the Valuation Office Agency, which is an agency of HM Revenue and Customs.

A property's rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date.

• Until 31 March 2023, the rateable values will be based on the valuation date of 1 April 2015.
• From 1 April 2023, the rateable values will be based on the valuation date of 1 April 2021.

The Valuation Office Agency (VOA) values all business properties for business rates. 

The valuation is based on information the VOA holds about your property. You can view and update this information at GOV.UK: Find and check your business rates valuation

You can contact the VOA at GOV.UK: Contact VOA. If you are unable to use the online service you can also contact the VOA on 03000 501 501.

If you have appealed against your rateable value

You still have to pay even if you have appealed against your rateable value.

Rates are payable based on the rateable value which appears in the current rating list and if you do not pay as shown on your bill, further action may be taken.

If your appeal is successful and your rates are reduced, your bill will be recalculated, and you would be entitled to a refund of any overpayment.

The non-domestic rating multiplier is a fixed amount set by Central Government each year and normally changes every year in line with inflation. 

There are two multipliers:

1. The standard multiplier for 2024 / 25 is 54.60 pence 
2. The small business multiplier for 2024 / 25 is 49.90 pence

When the rateable value is multiplied by the non-domestic rating multiplier, this gives the basic amount you have to pay for the financial year.

Ratepayers who occupy a property with a rateable value less than £50,999 have their bills calculated using the lower small business non-domestic rating multiplier, rather than the standard national non-domestic rating multiplier.

This figure could be further adjusted as a result of any relief you may be entitled to. See our rate relief page for more information.