How is my Business Rates bill calculated?

Calculating Business Rates (Non-Domestic Rates)

Every non-domestic property, unless exempt from Business Rates, has a Rateable Value (RV). Each year the Government sets a fixed amount to be used in calculating Business Rates. This is known as the multiplier. Your bill is calculated by multiplying the RV of the property by the appropriate multiplier.

Rateable Value (RV)

The rateable value is assessed by the Valuation Office Agency (VOA), which is an agency of HM Revenues and Customs.

The rateable value broadly represents the yearly rent the property could be let for on the open market on a particular date. The rateable value may also alter if the circumstances of the property have changed.

Multiplier

The Government sets two multipliers every year; the standard multiplier and one for small businesses.

Transitional arrangements

For ratepayers with large increases in their business rates liability, following a revaluation, the Government puts in place a transitional relief scheme to limit and phase changes in business rates bills. Under the transitional scheme, limits continue to apply to yearly increases until the full amount is due (rateable value x the appropriate multiplier).

From the 1 April 2023 Transitional Relief will only apply where there's an increase in a rateable value.  If the rateable value is decreasing, the business will benefit from the full reduction straightaway from 1 April 2023.

Transitional arrangements are applied automatically and shown on the front of your bill. For further information, please see transitional arrangements and other Business Rates reduction - South Holland District Council (sholland.gov.uk)