Business rates - Print version

About business rates

Business rates are charged on most non-domestic properties, like:

• shops
• offices
• pubs
• warehouses
• factories
• holiday rental homes or guest houses

You'll probably be liable for business rates if you use a building or part of a building for non-domestic purposes.

More information can be found on the GOV.UK business rates pages [http://www.gov.uk/introduction-to-business-rates/revaluation].

Who calculates business rates charges?

Which agency does what?

The Valuation Office Agency sets the rateable value on which charges are based. Find out your rateable value and information about your property valuation [https://www.voa.gov.uk].

The Government sets the rating multiplier and make the national legislation and rules [https://www.gov.uk/introduction-to-business-rates].

We bill and collect business rates on behalf of Central Government.

How is the business rates charge calculated?

We multiply the rateable value of an individual property, which is set by the Valuation Office Agency [http://www.voa.gov.uk/] by a 'multiplier' (the national non-domestic multiplier) set by central government.

There are two multipliers, the standard non-domestic rating multiplier, and the small business rating multiplier. From 1 April 2024 both multipliers are based on the previous year's multiplier adjusted to reflect the Consumer Price Index inflation figure, unless a lower multiplier is set by Government. The multiplier represents the number of pence in each pound of the rateable value that will be payable in Business Rates before any relief or discounts are applied.

From 1 April 2024 all properties with a rateable value below £51,000 automatically have their rates calculated using the small business rating multiplier. Between 1 April 2017 and 31 March 2024 all occupied properties with a rateable value below £51,000 automatically had their rates calculated using the small business rating multiplier (unless already in receipt of Mandatory or Rural Rate Relief). Between 1 April 2012 and 31 March 2017 all occupied properties with a rateable value below £18,000 automatically had their rates calculated using the small business rating multiplier.

The multiplier applied can be found on the front of your business rates bill.

How do I estimate my bill?

You can estimate your business rates bill using the Government's estimator tool [https://www.gov.uk/calculate-your-business-rates]. Any figures provided are only estimates. Your exact liability will be on your Business Rates bill from us.

How do I appeal my Rateable Value?

You can see the rateable value of your property through the VOA's Find a Business Rates Valuation Service [https://www.gov.uk/find-business-rates] on GOV.UK.

You think your rateable value is too high

From 1 April 2023, you will need to use a business rates valuation account to tell the VOA you think your rateable value is too high. You must continue to pay your business rates as normal until a decision has been made.

Sign in or register for a business rates valuation account [https://www.gov.uk/business-rates-valuation-account].

How do I appeal my 2017 Rateable Value?

The 2017 rating list closed 31 March 2023 and you are not able to challenge the 2017 valuation assessment.

How can I find out more?

More information can be found on the GOV.UK business rates pages [http://www.gov.uk/introduction-to-business-rates/revaluation].

Do I have to pay my Business Rates if I have made an appeal?

Yes - you are not entitled to withhold payment pending the outcome of an appeal and must pay charges due calculated in accordance with the rateable value shown in the rating list. We can take legal action to recover any unpaid business rates if necessary.

What happens if my appeal is successful?

Changes to rateable values following successful appeals will normally be backdated to the beginning of the financial year in which the appeal is made, although there are some exceptions to this rule. Further information about these arrangements is on the Department for Levelling Up, Housing and Communities website [https://www.gov.uk/government/organisations/department-for-levelling-up-housing-and-communities].

Statutory guidance 2024 - 2025

Non-domestic rates

Non-Domestic Rates, or business rates, collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services. Under the business rates retention arrangements introduced from 1st April 2013, authorities keep a proportion of the business rates paid locally. The money, together with revenue from council tax payers, locally generated income and grants from central government, is used to pay for the services provided by local authorities in your area. Further information about the business rates system may be obtained at: www.gov.uk/introduction-to-business-rates, at the website of your local authority, which is normally shown on your rates bill, or by contacting your local authority.

Business rates instalments

Payment of business rates bills is automatically set on a 10-monthly cycle. However, the Government has put in place regulations that allow ratepayers to require their local authority to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact your local authority as soon as possible.

National non-domestic rating multiplier

The local authority works out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier. There are two multipliers: the standard nondomestic rating multiplier and the small business non-domestic rating multiplier. The Government sets the multipliers for each financial year, except in the City of London where special arrangements apply.

Ratepayers who occupy a property with a rateable value which does not exceed £50,999 will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the standard non-domestic rating multiplier.

Both multipliers for a financial year are based on the previous year’s multiplier adjusted to reflect the Consumer Price Index (CPI) inflation figure for the September prior to the billing year, unless a lower multiplier is set by Government. The current multipliers are shown on the front of your bill.

Rateable value

Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the Valuation Office Agency (VOA), an agency of His Majesty’s Revenue and Customs. They compile and maintain a full list of all rateable values, available at www.gov.uk/voa [https://www.gov.uk/government/organisations/valuation-office-agency]. The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date specified in legislation. For the current rating list, this date was set as 1 April 2021.

The VOA may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong.
Further information about the grounds on which challenges may be made and the process for doing so can be obtained by contacting the VOA, or by consulting the VOA website [https://www.gov.uk/guidance/check-and-challenge-your-business-rates-valuation-step-by-step].

Revaluations

All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1st April 2023. Revaluations ensure that business rates bills are up-to-date and more accurately reflect current rental values and relative changes in rents. Frequent revaluations ensure the system continues to be responsive to changing economic conditions.

Business rate reliefs

Depending on individual circumstances, a ratepayer may be eligible for a rate relief (i.e. a reduction in their business rates bill). There are a range of available reliefs. Further details are provided below and at www.gov.uk/introduction-to-business-rates [https://www.gov.uk/introduction-to-business-rates], at the website of your local authority which is normally shown on your rates bill, or by contacting your local authority.

Temporary reliefs

Some of the permanent reliefs are set out below but other temporary reliefs may be introduced by the Government at a fiscal event. Further detail on current temporary reliefs is available at www.gov.uk/apply-for-business-rate-relief [https://www.gov.uk/apply-for-business-rate-relief]. You should contact your local authority for details on the latest availability of business rates reliefs and advice on whether you may qualify.

Small business rates relief

If a ratepayer’s sole or main property has a rateable value which does not exceed a set threshold, the ratepayer may receive a percentage reduction in their rates bill for the property of up to a maximum of 100%. The level of reduction will depend on the rateable value of the property. For example, eligible properties with a rateable value below a specified lower threshold will receive 100% relief while properties above the lower threshold and below a specified upper threshold may receive partial relief. The relevant thresholds for relief are set by the Government by order and can be obtained from your local authority or at www.gov.uk/introduction-to-business-rates.

Generally, these percentage reductions (reliefs) are only available to ratepayers who occupy either—

• (a) one property, or
• (b) one main property and other additional properties providing those additional properties

each have a rateable value which does not exceed the limit set by order.

The aggregate rateable value of all the properties mentioned in (b), must also not exceed an amount set by order. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, they will be allowed to keep that relief for a fixed additional period. Full details on the relevant limits in relation to second properties and the current period for which a ratepayer may continue to receive relief after taking on an additional property can be obtained from your local authority or at www.gov.uk/introduction-to-business-rates [https://www.gov.uk/introduction-to-business-rates].

Certain changes in circumstances will need to be notified to the local authority by the ratepayer who is in receipt of relief (other changes will be picked up by the local authority). The changes which should be notified are—

• (a) the property falling vacant,
• (b) the ratepayer taking up occupation of an additional property, or
• (c) an increase in the rateable value of a property occupied by the ratepayer in an area other

than the area of the local authority which granted the relief.

Charity and community amateur sports club relief

Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the charity or the club and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs).
The local authority has discretion to give further relief on the remaining bill. Full details can be obtained from the local authority.

Transitional rate relief

At a revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases.
Transitional relief schemes are introduced at each revaluation to help those facing increases. Transitional relief is applied automatically to bills. Further information about transitional arrangements may be obtained from the local authority or the website www.gov.uk/introduction-to-business-rates [https://www.gov.uk/introduction-to-business-rates].

Local discounts and hardship relief

Local authorities have a general power to grant discretionary local discounts and to give hardship relief in specific circumstances. Full details can be obtained from the local authority.

Unoccupied property rating

Business rates are generally payable in respect of unoccupied non-domestic property. However, they are generally not payable for the first three months that a property is empty. This is extended to six months in the case of certain industrial premises, whilst certain other properties such as vacant listed buildings are not liable for business rates until they are reoccupied. Full details on exemptions can be obtained from your local authority or from gov.uk at https://www.gov.uk/apply-for-businessrate-relief [https://www.gov.uk/apply-for-business-rate-relief].

Subsidy control

The new UK subsidy control regime commenced from 4th January 2023. The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities giving subsidies must comply with the UK’s international subsidy control commitments.

The subsidy control legislation provides the framework for a new UK-wide subsidy control regime. Further information about subsidy control can be found on the gov.uk website [https://www.gov.uk/government/collections/subsidy-control-regime].
 
Rating advisers

Ratepayers do not have to be represented in discussions about the rateable value of their property or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS - website www.rics.org) and the Institute of Revenues, Rating and Valuation (IRRV - website www.irrv.org.uk) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating adviser or company you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.

Information Supplied with Demand Notices

Information relating to the relevant and previous financial years in regard to the gross expenditure of the local authority is available: 

• Information relating to 2023-2024 financial year in regard to the gross expenditure of the local authority [https://www.coventry.gov.uk/downloads/download/7457/council-tax-bill-2023-2024]  
• Information relating to 2024-2025 financial year in regard to the gross expenditure of the local authority [https://www.coventry.gov.uk/downloads/download/7757/council-tax-bill-2024---2025]

A hard copy is available on request by writing to the local authority or at 024 7683 2525.

Business Rates Charter

A quality service

Our commitment to you - to reduce poverty and provide excellent financial services for our customers.

We aim to make our revenue service:

• exceed your expectations
• a service that people want to come to

Collecting business rates

This charter sets out:

• our commitment for the service we deliver
• the standards you should expect from us
• how you can help us achieve and maintain these standards

We have a duty to collect business rates from all ratepayers

We will:

• give you at least 14 days' notice of the first instalment becoming due
• provide a variety of flexible payment methods
• make payment arrangements with you if you are in financial difficulty (see how to contact us)
• take action within business rates law if you do not pay on time

The standards you can expect from us

We will:

• send out accurate business rates bills
• collect business rates quickly and efficiently
• deal with your enquiries quickly and efficiently
• provide clear and up-to-date information
• help you understand your rights and responsibilities
• apologise if we make a mistake
• work to improve our standards and the service we provide

We will also listen to your views

• We welcome your views on the service you receive from us, as they will give us vital feedback on our performance
• We are committed to making changes to improve our service where we can. We will be pleased to receive your comments, whether they are compliments or criticisms
• A senior manager will investigate formal complaints, and then tell you the results
• If you want details of our complaints procedure, please ask us or contact the Council House

What you can expect from our staff

Our staff will:

• be well trained
• be helpful, patient, polite and fair
• make every effort to answer your questions
• tell you your rights
• explain business rates law in plain language
• give their name when you ask for it
• provide or arrange help in a number of languages.

You can help us achieve our standards by:

• being polite when dealing with staff
• giving us complete and accurate information
• paying your business rates on time so that the payment is in your account by the due date
• contacting us as soon as possible if you are having difficulties in making payments
• telling us about changes to your circumstances that might affect how much business rates you have to pay; and telling us if you don't think we have kept to this charter.