Calculate Business Rates

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Estimate Business Rates (England)

£
Find this on the VOA website or your valuation summary.
2024/2025 Standard (RV ≥ £51k) – 54.6p 2024/2025 Small Business (RV < £51k) – 49.9p 2023/2024 Standard (RV ≥ £51k) – 51.2p 2023/2024 Small Business (RV < £51k) – 49.9p Custom Multiplier (Pence)
p
Base Liability (Gross) £0.00
SBRR Deduction -£0.00
Retail Relief (75%) -£0.00
Estimated Annual Bill £0.00
Monthly Installment (x10) £0.00

*Estimates based on England formulas. Actual bills may vary due to transitional relief or local council discretion.

How to Calculate Business Rates

Business rates are a tax charged on most non-domestic properties, such as shops, offices, pubs, warehouses, and factories. Calculating your business rates liability involves understanding three key components: your property's Rateable Value (RV), the Multiplier set by the government, and any Relief Schemes you may be eligible for.

1. The Core Formula

The basic calculation for business rates is relatively straightforward before reliefs are applied:

Annual Bill = Rateable Value (RV) × Multiplier

For example, if your property has a Rateable Value of £20,000 and the Small Business Multiplier is 49.9 pence (0.499), your basic annual liability would be £9,980.

2. Understanding the Multiplier

The multiplier indicates how many pence in the pound you pay in business rates. There are typically two multipliers in England:

  • Standard Multiplier: Applies if your Rateable Value is £51,000 or more. For the 2024/2025 tax year, this is 54.6p.
  • Small Business Multiplier: Applies if your Rateable Value is below £51,000. For the 2024/2025 tax year, this is frozen at 49.9p.

3. Applying Rate Reliefs

Relief schemes can significantly reduce your final bill. The calculator above accounts for the two most common reliefs:

Small Business Rate Relief (SBRR)

You can get SBRR if your property's Rateable Value is less than £15,000 and your business only uses one property (or meets specific criteria for additional properties).

  • RV up to £12,000: You pay no business rates (100% relief).
  • RV between £12,001 and £15,000: Relief tapers down from 100% to 0%.

Retail, Hospitality and Leisure Relief

Eligible businesses in these sectors may receive a 75% reduction on their business rates bill for the 2024/2025 tax year, up to a cash cap of £110,000 per business. This is applied after SBRR calculations.

function toggleCustomMultiplier() { var type = document.getElementById('multiplierType').value; var customGroup = document.getElementById('customMultiplierGroup'); if (type === 'custom') { customGroup.style.display = 'block'; } else { customGroup.style.display = 'none'; } } function calculateBusinessRates() { // 1. Get Inputs var rvInput = document.getElementById('rateableValue'); var rv = parseFloat(rvInput.value); var multiplierType = document.getElementById('multiplierType').value; var sbrrChecked = document.getElementById('sbrrCheck').checked; var retailChecked = document.getElementById('retailCheck').checked; // Validation if (isNaN(rv) || rv < 0) { alert("Please enter a valid Rateable Value."); return; } // 2. Determine Multiplier (Pence) var multiplierPence = 0; if (multiplierType === 'custom') { multiplierPence = parseFloat(document.getElementById('customMultiplier').value); if (isNaN(multiplierPence)) { alert("Please enter a valid custom multiplier."); return; } } else if (multiplierType === 'standard_2024') { multiplierPence = 54.6; } else if (multiplierType === 'small_2024') { multiplierPence = 49.9; } else if (multiplierType === 'standard_2023') { multiplierPence = 51.2; } else if (multiplierType === 'small_2023') { multiplierPence = 49.9; } // Auto-correct standard vs small multiplier logic if user didn't select custom // If user selected a standard preset but has low RV, or vice versa, we stick to their selection // unless we want to be smart. For this tool, we assume the user selected the year/type, // but often the 'Small' multiplier applies automatically if RV < 51,000. // Let's enforce the correct multiplier for the selected year based on RV if not custom. if (multiplierType !== 'custom') { // Check year to decide rates var is2024 = multiplierType.includes('2024'); var standardRate = is2024 ? 54.6 : 51.2; var smallRate = 49.9; if (rv < 51000) { multiplierPence = smallRate; // Update UI selection visually if needed, or just calculate silently. // We will calculate silently using the correct Small Business Multiplier rules. } else { multiplierPence = standardRate; } } // Convert pence to decimal var multiplierDecimal = multiplierPence / 100; // 3. Calculate Base Liability var baseLiability = rv * multiplierDecimal; // 4. Calculate SBRR (Small Business Rate Relief) var sbrrRelief = 0; if (sbrrChecked) { // SBRR rules: // RV 15,000: 0% relief if (rv <= 12000) { sbrrRelief = baseLiability; // 100% off } else if (rv 15k, they might still get small multiplier (handled above), but no relief deduction. } } var liabilityAfterSbrr = baseLiability – sbrrRelief; if (liabilityAfterSbrr < 0) liabilityAfterSbrr = 0; // 5. Calculate Retail Relief var retailRelief = 0; if (retailChecked) { // 75% off the remaining bill retailRelief = liabilityAfterSbrr * 0.75; // Note: There is a cash cap of £110k per business, but we can't track 'per business' here easily without more inputs. // We will calculate the flat 75%. } var finalAnnualBill = liabilityAfterSbrr – retailRelief; if (finalAnnualBill < 0) finalAnnualBill = 0; // Monthly (usually paid over 10 months in the UK) var monthlyBill = finalAnnualBill / 10; // 6. Output Results var formatter = new Intl.NumberFormat('en-GB', { style: 'currency', currency: 'GBP', minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById('baseLiability').innerText = formatter.format(baseLiability); document.getElementById('sbrrDeduction').innerText = "-" + formatter.format(sbrrRelief); document.getElementById('retailDeduction').innerText = "-" + formatter.format(retailRelief); document.getElementById('annualBill').innerText = formatter.format(finalAnnualBill); document.getElementById('monthlyBill').innerText = formatter.format(monthlyBill); }

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