Business rates in the UK are a tax on the right to occupy commercial property and typically equate to approximately 50% of annual rent. They represent one of the largest overheads for businesses and substantially impact on profitability.
If you occupy a building, or part of one, that you use for commercial purposes, then you'll be required to pay business rates. Sometimes the landlord of the property charges the occupier a rent that also includes an amount for the business rates.
This calculator gives an estimate of your business rates bill based on the information you enter.To use the calculator you'll need to:
Business rates are calculated in a two-step process. Firstly, the Valuation Office Agency (VOA) are tasked with estimating the annual rent the property is likely to let for as at a statutorily fixed valuation date. . This is called a Rateable Value (RV) and is placed in the rating list alongside the address of the property to form the assessment. These can be found on the VOA website.
The second step is this RV is then used to create the liability by multiplying it by the Uniform Business Rate (UBR) factor which is set every year. This is typically around 50p in the £ and therefore the charge is approximately 50% of the annual rent. The UBR is adjusted every year for inflation by applying the Retail Price Index (RPI).
The Standard Multiplier for 2017/18 in England for any unoccupied property with Rateable Value (RV) of £2,900 or above and any occupied property with RV over £51,000 or above is £0.479p.
If you became liable on a commercial assessment with an RV of £60,000 for example, to calculate your liability you would multiply the 'multiplier' by the RV: £0.479p x £60,000 = £28,740. Your estimated business rate charge for the full financial year before any reliefs, discounts or exemptions are applied would be £28,740.
2017/18 UBR Multiplier for qualifying occupied assessments between RV 2,901 & 50,999 is £0.466p. Unoccupied assessments with RV £2,900 and below are exempt from any rate liability.
As one of the leading specialist teams in this sector, we offer a full rates management service which will ensure that this costly overhead is mitigated at every stage.
**City of London apply a supplement of £0.05p onto the standard multiplier. ***All assessment over RV £70,000 within Greater London have an additional Business Rates Supplement of £0.02p added to their charge for Crossrail.
How to appeal business rates?
By checking a number of factors highlighted in our step-by-step guide.
How can I reduce my business rates?
There are a number of important steps a business can take to ensure that it is paying the correct amount and is not overcharged
Ratebale Value (RV) Guide 2018
For ratepayers: use the information contained in this guide to check if you have entitlement to any reliefs or exemptions.