About Business Rates
What are business rates
We charge business rates on most non-domestic properties. They’re also known as national non-domestic rates, often shortened to NNDR. Business rates is how businesses contribute towards the cost of local services. The council keeps 30% of the amount payable, pays 33% to the central government and 37% to the Greater London Authority.
Business rates are charged on most business properties such as shops, offices, pubs, warehouses, and factories. However, the property doesn't have to be used for a business - if it is used for purposes that are not domestic it is likely to be rateable. We will send you a business rates bill each year.
If a property is occupied, the person or company occupying it is liable for paying business rates. Sometimes a landlord may charge an occupier rent which includes an element for rates. Even in these cases, the occupier is still the person liable for payment and the bill is sent in his/her name. In these circumstances, the occupier would usually pass the bill to the landlord who would make a payment on the occupier's behalf.
How we calculate your bill
We calculate your business rate bill by multiplying the rateable value by the annual multiplier (rate in the pound) set by the government each year.
You can estimate your business rates by multiplying the rateable value by the correct ‘multiplier' (an amount set by the central government).
Rateable Value
Each non-domestic property has a rateable value, which is its open market rental value on 1 April 2022, based on an estimate by the Valuation Office Agency (VOA).
The VOA is responsible for setting rateable values. The current list of rateable values came into effect on 1 April 2023 and they broadly represent the yearly rent the property could've been let for on the open market on 1 April 2022. The next revaluation will come into effect on 1 April 2026.
The VOA may change the rateable value if the circumstances of the property have changed. The ratepayer (and certain others who have an interest in the property) can also appeal against the value shown in the list if they think it's wrong. The Council can only backdate any business rates rebate to the date from which any change to the list is to have an effect.
Multiplier
The government sets the multiplier, which is the rate in the pound. It changes every year, usually in line with inflation. There are two multipliers; the standard multiplier and the small business multiplier (which we use to calculate bills for properties that aren't empty and have a rateable value of less than £51,000).
For the period 1 April 2025 to 31 March 2026:
- the standard non-domestic rating multiplier is 0.555 (or 55.5 pence in the pound)
- the small business non-domestic rating multiplier is 0.499 (or 49.9 pence in the pound) - frozen for five years
We calculate your business rates bill for the financial year by multiplying the rateable value of the property by the appropriate multiplier and then deducting any reliefs. If your rate liability starts or ends partway through the year, we calculate your charge for the number of days you're liable.
Crossrail business rate supplement
The Greater London Authority introduced a business rate supplement (BRS) to finance around £6.1 billion of the costs of the Crossrail project.
The supplement is 2 pence in the pound of rateable value charged on all properties with a rateable value of over £75,000.
Transitional Relief
Transitional relief schemes are introduced at each general revaluation. Some ratepayers will see reductions or no change in their bill, whereas some ratepayers will see increases. Ratepayers paying higher bills may qualify for transitional relief. This phases in the increase over a number of years. Transitional relief is applied automatically to bills. Further information about transitional relief may be found at: www.gov.uk/introduction-to-business-rates
The transitional arrangements apply only to the bill based on your property at the time of the revaluation. If there are any changes to the rateable value of the property (eg because an extension has been added) after the revaluation date, transitional arrangements will not normally apply to the part of your bill that applies to any increase or decrease in rateable value due to those changes.
How to appeal a rateable value
Use the VOA's Check Challenge Appeal (CCA) process to report changes to your business property, for example remove it from the rating list or if you think your rateable value is too high.
Check and challenge your business rates valuation
Please be aware that Business Rates remains due and payable until the VOA removes the property from the Ratings List.