{"id":1736,"date":"2010-11-03T09:58:08","date_gmt":"2010-11-03T09:58:08","guid":{"rendered":"http:\/\/startups.co.uk\/?p=1736"},"modified":"2023-11-24T14:43:56","modified_gmt":"2023-11-24T14:43:56","slug":"how-to-calculate-your-business-rates","status":"publish","type":"post","link":"https:\/\/startups.co.uk\/premises\/legal\/how-to-calculate-your-business-rates\/","title":{"rendered":"What are Business Rates? Calculator and Small Business Rate Relief explained"},"content":{"rendered":"

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What are business rates?<\/h2>\n

Similar to council tax, business rates<\/strong> are charged by local authorities to finance public services. Any firm that occupies non-domestic or commercial properties must pay business rates. The property occupier, either the owner or the leaseholder, pays the business rates.<\/p>\n

If you only use part of a building for non-domestic purposes, for example, a shop with a residential flat above it, the part used for business will still require payment of business rates.<\/p>\n

Similarly, if you work from home, you may have to pay business rates on the section of your house that is used for work purposes.<\/p>\n

New business rates were introduced on 1 April 2023 for the first time in three years. Business owners now need to budget accordingly for the new valuation, as the impending recession has put extra pressure on cash flow.<\/p>\n

Government aid will be given via an updated and expanded Small Business Rates Relief (SBRR) scheme<\/strong><\/a>. However, March’s Spring Budget gave little else in the way of business rate support.<\/a><\/p>\n

If you’re a small business owner, you might be eligible for business rates relief through the SBRR. This relief cuts the amount of business rates you have to pay, lowering your overheads and freeing up cash for investing in growth. We’ll explain more about how to qualify for the scheme in the article below.[\/vc_column_text]\n <\/p>

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\n \n \n Business rates revaluation for 2023 <\/span>\n <\/div>\n \n
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Business rates are regularly updated by the Valuation Office Agency (VOA). On April 1 2023, new rateable values<\/a> (the metric used to calculate a business rates bill) determined by the VOA came into effect on all non-domestic properties in England and Wales.<\/p>\n

On average, the total rateable value on the local lists for England and Wales has increased by 7.1%. But while the figure might send alarm bells ringing, a rise in your rateable value does not mean your business rates bill will have gone up by a similar amount. <\/strong>Local councils use the rateable value to calculate a property’s business rates bill, so your final bill will ultimately depend on where your business is based.<\/p>\n

Now that the new financial year has begun, we recommend getting an estimate of what your business rates bill is likely to be this year through the Find a Business Rates Valuation Service<\/strong><\/a> on GOV.UK.<\/p>\n

If you have not done so already, we also recommend setting up a Business Rates Valuation Account. This can be used to inform the VOA about any changes to your property details like floor area sizes and parking. It can also be used to appeal your new rateable value if you think it has been set too high.<\/p>\n <\/div>\n <\/div>\n

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\n In this guide: <\/h3>\n