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Business rates - how they are calculated

Non-Domestic Rates, or business rates are calculated by multiplying the Rateable Value (RV) of the business premises by the Rate on the Pound/Multiplier.

Rateable Value

Every non-domestic premises is given a rateable value which is decided by the Valuation Office Agency.  The Valuation Office Agency compiles and maintains a full list of all rateable values in England and Wales.

Rateable values are reassessed, or revalued, every five years to bring them in line with current market values. The next revaluation will not come into effect  until 1 April 2023.

The rateable value of your property is shown on the front of your Business Rates Bill. The rateable value broadly represents the yearly rent the property could have been let for on the open market at a particular date. For the revaluation that came into effect on 1 April 2017, this date was set as 1 April 2015.

The Rating List and further information about rateable values is available from the GOV.UK - Valuation Office Agency.

Business Rate Multipliers

Before the start of each financial year the Government sets two Business Rate Multipliers for the whole of England.

Business Rate Multipliers 2021/22Amount
Standard Rating Multiplier51.2p
Small Business Multiplier49.9p

 

Business Rate Multipliers 2020/21Amount
Standard Rating Multiplier51.2p
Small Business Multiplier49.9p


As set out in its Spending Review published on 25 November 2020, the Government has decided to freeze the business rates multipliers in 2021/22.

The Government has laid the necessary legislation (the Local Government Finance Act 1988 (Non-Domestic Rating Multipliers) (England) Order 2021) to implement this freeze.

Following the approval by the House of Commons on 10 February 2021 of the Local Government Finance Report (England) 2021/2022, the Secretary of State has calculated the non-domestic rating multipliers for England for 2021/2022.

In the year of a revaluation, the standard multiplier is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year. The current multipliers are shown on the front of your bill.

Example Business Rates calculation

Non-Domestic Rates, or Business Rates are calculated by multiplying the Rateable Value (RV) of the business premises by the Rate on the Pound/Multiplier,

  • e.g. £50,000 (RV) x 0.512 (51.2p Standard Rating Multiplier) = £25,600

Estimate your Business Rates Bill

You can estimate your Business Rates bill using the estimator here, see GOV.UK - Estimate your business rates.

Any figures that the estimator provide are only estimates.  Your exact liability will be on your Business Rate Bill from Basildon Council.

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