Who is liable for business rates?

Who pays Business Rates?

The person or company who actually occupies a non-domestic property usually pays the rates. Often this will also be the owner or leaseholder of the property.

What properties count as non-domestic?

Any property that is not intended for use as somebody’s residence will be liable for Non Domestic Rates. Shops, offices, factories and warehouses are obvious examples.

Holiday homes that are available for commercial letting for 140 days a year or more AND let the property commercially for 70 days or more in the previous 12 months will be charged non-domestic rates. To find out more go to the Valuation Office Agency website.

Some non-domestic properties are exempt from rates. The most common types are farmland and buildings, churches, sewers and public parks.

 

How is it worked out?

Each non domestic property has a rateable value, which is set by the valuation officers of the Valuation Office Agency (VOA), an agency of Her Majesty’s Revenue and Customs.

The local authority works out the Business Rates bill by multiplying the rateable value of the property by the appropriate multiplier.

What are multipliers?

There are two multipliers; the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The Government sets the multipliers for each financial year for the whole of England. The Government normally changes both multipliers every year in line with inflation.

  • The Non-Domestic Multiplier for 2024/2025 is 54.6p
  • The Small Business Non-Domestic Multiplier for 2024/2025 is 49.9p – this applies to all properties with a Rateable Value below the threshold of £51,000
  • The Non-Domestic Multiplier for 2023/2024 is 51.2p
  • The Small Business Non-Domestic Multiplier for 2023/2024 is 49.9p
  • The Non-Domestic Multiplier for 2022/2023 is 51.2p
  • The Small Business Non-Domestic Multiplier for 2022/2023 is 49.9p
  • The Non-Domestic Multiplier for 2021/2022 is 51.2p
  • The Small Business Non-Domestic Multiplier for 2021/2022 is 49.9p

Explanatory Notes

Explanatory Notes are issued as part of your Business Rates bill and can be viewed below.

Important information to accompany your bill

When viewing your bill online this additional information can be viewed in the downloads section below:

  • The back of your business rates bill contains important information and advice
  • Business Rates Explanatory Notes give further information that forms part of your initial/yearly bill
  • Business Rates leaflet contains other information you may find helpful
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