This page gives a summary introduction to Business Rates. You can also look at a more in depth explanation on our explanatory notes for business rates page.

Business rates (also known as National Non-Domestic Rates) are charged on most business properties such as shops, offices, pubs, warehouses, factories and holiday rentals or guest houses. 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.

Who is responsible for paying Business Rates?

Property occupied solely by you or your company

A person (or company) is responsible for business rates for any property they occupy.  Even if you only occupy part of the property (as it is recorded by the Valuation Office Agency), you will still be responsible for 100% of the Business Rates bill. 

Joint responsibility

There can be more than one person or company responsible for business rates. Joint occupiers / owners are ‘jointly and severally’ responsible for the business rates bill for the property. This means any of the named parties can be held liable for the whole bill.

Unoccupied property

Business Rates are also payable on unoccupied property.

When a property is unoccupied, liability is returned to the owner or leaseholder of the property (that is, the person who is entitled to possession of the property).  They are responsible for the empty charge.

There are some exemptions and reliefs available for unoccupied property. More information can be found in the ‘relief for empty/unoccupied properties’ part of our business rate reliefs and exemptions.

How your business rates are calculated

Valuation Office Agency

The Valuation Office Agency sets the rateable value on which your rates are based.

Government

The government sets the multiplier and makes national rules about business rates.

Local authority

We bill and collect business rates on behalf of central government.

The basic calculation involves multiplying the rateable value of the property by the multiplier or rate poundage, which is set annually by the Government. The rateable value is set by The Valuation Office Agency.

What is the multiplier?

The multiplier is set each year by the Government and cannot, by law, rise by more than the amount of the increase in the retail price index (except immediately following a revaluation).

There are different multipliers for different sized properties.

There are other factors which may affect the amount you actually have to pay, including various relief schemes. You can find out more about these by visiting our business rate reliefs and exemptions page.