Business rates guide

Show all parts of this guide

7. 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.

To work out your charge we multiply the rateable value of an individual property, which is set by the Valuation Office Agency by a multiplier (the national non-domestic multiplier) set by central government.

It is set for the whole of England and is effective from 1 April each year. The multiplier represents the number of pence in each pound of the rateable value that will be payable in business rates before any relief or discounts are applied. The calculation gives the amount of rates payable for the year.

The government reviews the multiplier each year to reflect changes in inflation. By law, the multiplier cannot increase or decrease by more than the rate of inflation, except in the year of a revaluation. In that year it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year.

There is a revaluation approximately every five years, the Valuation Office have completed their latest general revaluation and the new rateable values apply from 1 April 2017.