Business rates, also known as non-domestic rates, are a tax paid by businesses on most non-domestic properties. These properties include offices, shops, pubs, factories, warehouses, and other commercial premises.
How Business Rates are Calculated
The calculation of business rates involves two main components:
Rateable Value (RV): This is an estimate of the annual rental value of your business property. It's assessed by the Valuation Office Agency (VOA) in England and Wales, the Scottish Assessors Association (SAA) in Scotland, and the Valuation and Lands Agency (VLA) in Northern Ireland. The RV is not your actual rent; it's a figure used by the government to calculate your rates.
Multiplier (Poundage): This is a rate set by the government each year. It's a figure that's multiplied by the rateable value to determine the amount of business rates payable. There are usually two multipliers: the standard multiplier and a small business multiplier (which is lower).
The basic formula is:
Business Rates = Rateable Value × Multiplier
Small Business Rate Relief
To help small businesses, the government offers Small Business Rate Relief (SBRR). If your business property's rateable value is below a certain threshold, you may be eligible for relief. The amount of relief depends on the rateable value:
Properties with a rateable value of £15,000 or less will get 100% relief.
Properties with a rateable value between £15,001 and £51,000 may get tapered relief, meaning the percentage of relief reduces as the rateable value increases.
The relief percentage in our calculator is a simplified representation, and actual eligibility and percentages can vary based on specific government schemes and the property's RV.
Using This Calculator
Our Business Rates Calculator helps you estimate your potential business rates liability. You'll need to know your property's Rateable Value and the current Rateable Value Multiplier. You can also input details about Small Business Rate Relief to see how it might affect your bill. Please note that this is an estimation tool, and your actual business rates may vary.
Disclaimer: This calculator provides an estimate based on the inputs provided and general relief schemes. It is not a substitute for professional advice or an official assessment from the Valuation Office Agency or your local authority.
function calculateBusinessRates() {
var rvMultiplier = parseFloat(document.getElementById("rv_multiplier").value);
var rateableValue = parseFloat(document.getElementById("rateable_value").value);
var sbrThreshold = parseFloat(document.getElementById("small_business_relief_threshold").value);
var reliefPercentage = parseFloat(document.getElementById("relief_percentage").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(rvMultiplier) || isNaN(rateableValue) || isNaN(sbrThreshold) || isNaN(reliefPercentage)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (rvMultiplier <= 0 || rateableValue < 0 || sbrThreshold < 0 || reliefPercentage 100) {
resultDiv.innerHTML = "Please enter valid positive numbers. Relief percentage must be between 0 and 100.";
return;
}
var grossRates = rateableValue * rvMultiplier;
var netRates = grossRates;
var reliefApplied = 0;
var reliefMessage = "";
if (rateableValue <= sbrThreshold) {
// Simplified: If RV is below threshold, assume full relief or a defined percentage
// For this calculator, we'll use the provided reliefPercentage as a general factor if RV is below threshold.
// A more complex calculator would use specific SBRR tiers.
reliefApplied = grossRates * (reliefPercentage / 100);
netRates = grossRates – reliefApplied;
reliefMessage = "Small Business Rate Relief applied.";
} else {
// If RV is above the simplified threshold, but relief might still apply (e.g., tapered relief)
// For this simplified calculator, we'll only apply relief if RV is below the specified threshold
// and a percentage is given. A real-world scenario might have more complex tapering.
reliefMessage = "Rateable Value is above the basic Small Business Rate Relief threshold.";
}
resultDiv.innerHTML += "