A guide to your Business Rates

Introduction

Non-Domestic Rates, or ‘Business Rates’, collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services.

Under the business rates retention arrangements introduced from 1st April 2013, authorities keep a proportion of the business rates paid locally. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenues. 

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 local authorities in your area. Further information about the business rates system, including transitional and other reliefs, may be obtained at GOV.UK .

Rateable Value

Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the valuation officers (VOs) of the Valuation Office Agency (VOA), an agency of Her Majesty's Revenue and Customs. They draw up and maintain a full list of all rateable values, available at Valuation Office Agency (VOA) .

The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date. For the revaluation that came into effect on 1st April 2017, this date was set as 1st April 2015.

Further information regarding Rateable Value can be found at Rating Revaluation.

The Valuation Office which deals with this area is at:

Further details about how to contact the VOA are available at Valuation Office Agency Contact Finder .

National Non-Domestic Rating Multiplier 

The local authority works out the business rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers: the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The former is higher to pay for small business rate relief. Except in the City of London where special arrangements apply, the Government sets the multipliers for each financial year for the whole of England according to formulae set by legislation.

The multiplier used is shown on the front of your bill. For 2017/18, the small business non-domestic multiplier is 46.6p and the national non-domestic multiplier is 47.9p.

Business Rates Instalments

Payment of business rate bills is automatically set on a 10-monthly cycle when a bill is issued for that year before the end of April. The number of instalments for bills issued after the end of April is worked out on the number of complete months remaining in the year.

However, the Government has put in place regulations that allow businesses to require their local authority to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact the local authority as soon as possible.

Revaluation 2017 and Transitional Arrangements

All rateable values are reassessed at a general revaluation. The 2017 revaluation takes effect from 1st April 2017. Revaluations make sure each ratepayer pays their fair contribution and no more, by ensuring that the share of the national rates bill paid by any one ratepayer reflects changes over time in the value of their property relative to others. Revaluation does not raise extra money for Government. 

Whilst the 2017 revaluation will not increase the amount of rates collected nationally, within this overall picture, over 7 out of 10 ratepayers will receive a reduction or no change in their bill and some ratepayers will see increases.

For those that would otherwise see significant increases in their rates liability, the Government has put in place a £3.6 billion transitional relief scheme to limit and phase in changes in rate bills as a result of the 2017 revaluation. To help pay for the limits on increases in bills, there also have to be limits on reductions in bills. Under the transitional scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the appropriate multiplier). 

The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to the property after 1st April 2017, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes. Changes to your bill as a result of other reasons (such as changes to the amount of small business rate relief) are not covered by the transitional arrangements. 

The maximum increase / decrease is dependent on the rateable value (RV) of the property and the limits for 2017/18 are as follows:-

  Rateable Value Maximum Increase Maximum Decrease
Small £20,000 or less 5% 20%
Medium > £20,000 or <= £100,000 12.5% 10%
Large Over £100,000 42% 4.1%

 

The transitional arrangements are applied automatically and are shown on the front of your bill.

Further information about transitional arrangements and other reliefs may be obtained from Calderdale Council at Relief and Exemptions.

More information on the 2017 revaluation can be found at Revaluation .

Reliefs and Exemptions

There are a number of Relief and exemptions that may be available on your Business Rates, examples of these include, relief for small businesses, relief for empty properties and charity reliefs.

Local Discounts

Local authorities have a general power to grant discretionary local discounts. Full details of existing local discount schemes can be found at Discretionary rate relief.

Rating advisers 

Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institute of Chartered Surveyors (RICS) and the institute of Revenues, Rating and Valuation are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. 

Before you employ a rating adviser, you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.

Information Supplied with Demand Notices

Information relating to the relevant and previous financial years in regard to the gross expenditure of the local authority is available at Business Rates explained where information is published. A hard copy is available on request at business.rates@calderdale.gov.uk or by telephone (01422) 393699.