This is the open market rental value of your property as estimated by the VOA.
Standard is approx 51.2p, Small Business is approx 49.9p.
Note: SBRR applies if your property's RV is less than £15,000 and it is your only business property.
Estimated Bill
Gross Annual Charge:£0.00
Small Business Relief:-£0.00
Total Annual Payable:£0.00
Estimated Monthly Cost:£0.00
Understanding Your Business Rates Calculation
Business rates are a tax on the occupation of non-domestic property in the United Kingdom. Whether you occupy a shop, office, warehouse, or factory, understanding how your rates are calculated is essential for financial planning and cash flow management.
The Basic Formula
The core calculation for business rates is relatively straightforward. It is calculated by multiplying your property's Rateable Value (RV) by the Multiplier (also known as the 'poundage').
Rateable Value (RV): This is an estimate of your property's open market rental value as of a specific valuation date, determined by the Valuation Office Agency (VOA).
The Multiplier: This is a figure set by the government each financial year, represented in pence. For example, a multiplier of 49.9p means you pay 49.9 pence in business rates for every £1 of rateable value.
Small Business Rate Relief (SBRR)
Many small businesses can reduce their bill significantly through Small Business Rate Relief. This calculator applies the standard sliding scale logic used in England:
RV up to £12,000: You generally receive 100% relief, meaning you pay £0.
RV between £12,001 and £15,000: You receive tapered relief. The relief decreases from 100% at £12,000 to 0% at £15,000.
RV £15,000 or higher: No Small Business Rate Relief is available, though you may still qualify for the lower "Small Business Multiplier" if your RV is below £51,000.
Multipliers
There are typically two multipliers:
Small Business Multiplier: Applied if your RV is below £51,000. (Approx 49.9p).
Standard Multiplier: Applied if your RV is £51,000 or more. (Approx 51.2p or higher).
Note: This calculator provides an estimate. Actual bills may vary due to Transitional Relief, local supplements, or specific regional differences (e.g., Scotland, Wales, or Northern Ireland rules).
function calculateBusinessRates() {
// 1. Get Input Values
var rvInput = document.getElementById('rateableValue');
var multInput = document.getElementById('multiplier');
var sbrrCheck = document.getElementById('applySBRR');
var rv = parseFloat(rvInput.value);
var multiplierPence = parseFloat(multInput.value);
var applySbrr = sbrrCheck.checked;
// 2. Validate Inputs
if (isNaN(rv) || rv < 0) {
alert("Please enter a valid Rateable Value.");
return;
}
if (isNaN(multiplierPence) || multiplierPence < 0) {
alert("Please enter a valid Multiplier.");
return;
}
// 3. Calculate Gross Charge
// Formula: RV * (Pence / 100)
var grossBill = rv * (multiplierPence / 100);
// 4. Calculate Relief (SBRR Tapering Logic)
var relief = 0;
if (applySbrr) {
if (rv 12000 && rv < 15000) {
// Tapered Relief
// The relief percentage reduces linearly from 100% to 0%
// Logic: Calculate the proportion of the £3000 band remaining
var difference = 15000 – rv;
var reliefFraction = difference / 3000;
relief = grossBill * reliefFraction;
} else {
// No relief for 15000+
relief = 0;
}
}
// 5. Calculate Net Bill
var netBill = grossBill – relief;
// Ensure we don't get negative numbers due to floating point rounding
if (netBill < 0) netBill = 0;
// 6. Calculate Monthly
var monthly = netBill / 10; // Business rates are typically paid over 10 months, sometimes 12. Let's do 12 for average cost, but commonly paid in 10 installments.
// We will display the 12-month average for budgeting purposes.
var monthlyAvg = netBill / 12;
// 7. Update HTML Results
document.getElementById('grossCharge').innerHTML = formatCurrency(grossBill);
document.getElementById('reliefAmount').innerHTML = "-" + formatCurrency(relief);
document.getElementById('totalAnnual').innerHTML = formatCurrency(netBill);
document.getElementById('monthlyCost').innerHTML = formatCurrency(monthlyAvg) + " (avg)";
// Show result box
document.getElementById('results').style.display = 'block';
}
function formatCurrency(num) {
return "£" + num.toLocaleString('en-GB', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
}