Calculating Business Rates

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Business Rates Calculator (UK 2024/25)

The annual rental value assigned to your property by the VOA.
Small Business Multiplier (49.9p) – RV under £51,000 Standard Multiplier (54.6p) – RV £51,000 or more
Enter any percentage reduction (e.g., Small Business Relief or Retail Discount).

Estimated Business Rates

Annual Payable: £0.00

Monthly Installment (10 Months): £0.00

Monthly Installment (12 Months): £0.00

function calculateBusinessRates() { var rv = parseFloat(document.getElementById('rateableValue').value); var multiplier = parseFloat(document.getElementById('multiplierType').value); var relief = parseFloat(document.getElementById('reliefPercentage').value); if (isNaN(rv) || rv <= 0) { alert("Please enter a valid Rateable Value."); return; } // Basic calculation: RV * Multiplier var baseRates = rv * multiplier; // Apply relief percentage var reliefAmount = (relief / 100) * baseRates; var finalAnnual = baseRates – reliefAmount; if (finalAnnual < 0) finalAnnual = 0; var monthly10 = finalAnnual / 10; var monthly12 = finalAnnual / 12; document.getElementById('annualTotal').innerText = '£' + finalAnnual.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('monthlyTen').innerText = '£' + monthly10.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('monthlyTwelve').innerText = '£' + monthly12.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resultsArea').style.display = 'block'; }

Understanding How Business Rates are Calculated

Business rates are a tax on properties used for commercial purposes, such as offices, shops, pubs, and warehouses. In the UK, these rates are handled by local councils and are based on the property's "Rateable Value."

1. What is Rateable Value (RV)?

The Rateable Value is the VOA's (Valuation Office Agency) estimate of the open market annual rental value of a property on a specific date. As of April 1, 2023, the RV is based on property values from April 1, 2021. This figure is updated every few years to reflect changes in the property market.

2. The Multiplier (Poundage)

The multiplier is the number of pence per pound of rateable value that you will pay in business rates. There are two types of multipliers for the 2024/25 tax year:

  • Small Business Multiplier (49.9p): Applicable if your property's rateable value is below £51,000.
  • Standard Multiplier (54.6p): Applicable if your property's rateable value is £51,000 or more.

3. Business Rate Reliefs

Many businesses do not pay the full bill. The most common relief is Small Business Rates Relief (SBRR). If your property's RV is £12,000 or less, you may receive 100% relief (paying nothing). For properties with an RV between £12,001 and £15,000, the relief is tapered. Other reliefs include Charitable Relief, Rural Rate Relief, and Retail, Hospitality, and Leisure Relief.

Example Calculation

If your shop has a Rateable Value of £14,000:

  1. Because it is under £51,000, we use the 49.9p multiplier.
  2. Initial Calculation: £14,000 x 0.499 = £6,986.
  3. If you qualify for tapered Small Business Relief (e.g., 33% off), your final bill would be approximately £4,680.62 per year.

Key Dates for 2024/25

Business rate bills are usually sent out in February or March for the upcoming tax year which starts on April 6th. You can typically choose to pay your bill over 10 or 12 monthly installments to help with business cash flow.

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