Business Rates Calculator
The open market rental value of your property as estimated by the VOA.
Estimated Annual Bill:
How to Calculate Your Business Rates
Business rates are a tax on properties used for commercial purposes. Understanding how these are calculated is essential for budgeting and financial planning for any business owner. The process relies on two primary figures: the Rateable Value and the Multiplier.
1. Understanding Rateable Value (RV)
The Rateable Value is an estimate of the annual rent the property would command on the open market at a specific valuation date. In England and Wales, the Valuation Office Agency (VOA) determines this value. You can find your property's RV on the official government website or your most recent rates bill.
2. The Business Rates Multiplier
The multiplier (also known as the "Uniform Business Rate") is the number of pence per pound of rateable value that you must pay. There are typically two types:
- Small Business Multiplier: Applied to properties with a rateable value below a certain threshold (currently £51,000 in England).
- Standard Multiplier: Applied to properties with a rateable value above that threshold.
3. Business Rate Reliefs
The final amount can often be reduced by "reliefs." The most common is Small Business Rate Relief. If your property's RV is £12,000 or less, you may receive 100% relief (paying nothing). For properties between £12,001 and £15,000, the relief is tapered. Other reliefs include charitable relief, retail relief, and transitional relief.
The Calculation Formula
Example Calculation
If your shop has a Rateable Value of £10,000:
- Identify the multiplier (Small Business): 0.499.
- Initial Calculation: £10,000 × 0.499 = £4,990.
- Apply Relief: If you qualify for 100% Small Business Rate Relief, your final bill is £0.