Business Rates

If you occupy a building, or part of one, that is used for commercial purposes, then you will be liable for paying business rates.  In some cases the landlord a property might charges the occupier a rent which also includes an amount for the Business Rates.

This calculator gives an estimate of your Business Rates bill based on the information you enter.  To use the calculator you’ll need to:

• Enter the postcode of your business premises
• Select your address from the list of results
• Select a property from the results page to identify potential savings based on their valuation.

Once the Valuation Office Agency (VOA) have estimated the Rateable Value (RV) the property is added to the rating list.  The rating list can be viewed on the government gateway, and is also the basis for our business rates calculator.

The Rateable Value is then used to create the rates liability by multiplying it by the Uniform Business Rate (UBR) factor which is set every year.  This is typically around 50p in the £GBP and therefore the charge is approximately 50% of the annual rent.  The UBR is adjusted every year for inflation by applying the Retail Price Index (RPI).  So whereas your rateable value may not change from one year to the next, the rates you pay may increase.

For example:

The Standard Multiplier in England for any commercial property with an RV of £51,000 or above is 0.512p.  To calculate your liability you should multiply the ‘multiplier’ by the RV: 0.512p x £60,000 = £30,720.  Your estimated Business Rate charge for the full financial year before any reliefs, discounts or exemptions are applied would be £30,720.

The 2023/24 UBR Multiplier for premises with rateable values up to £50,999 is £0.499p. To calculate your liability that liability, for example with a rateable value of £30,000 you would multiply the ‘multiplier’ by the RV: 0.499p x £30,000 = £14,970

For 2023/24 all properties in Wales have a liability based on a multiplier of 0.499, regardless of the rateable value.

It is important to note that the City of London applies a supplement of £0.014p onto the standard multiplier.  Also, all assessments with an RV of more than £75,000 within Greater London have a Crossrail Supplement of £0.02p added to their rateable value.

When an assessment is considered excessive, we lodge an appeal with the Valuation Office Agency, with the aim of securing a full refund on past overpayments and a reduction in the rates liability for the future.

Our specialists advise on a variety of commercial property classes, such as office space, industrial and retail premises as well as specialist properties such as museums and data centres.  We also provide strategies to minimise rate liability if a premises is empty, partially occupied or is adversely affected by external factors such as major building work.

• Identify whether the rating assessment is legally valid.
• Check and ensure the accommodation matches the assessment both in terms of area and occupancy.
• Review the rateable value using our extensive market knowledge.
• Challenge the assessment to ensure that the valuation is accurate and secure any available reductions, allowance, adjustment or relief.
• Full representation at Valuation Tribunal hearing.
• Monitor and react to any changes to the property or surroundings over the life of the appropriate rating list(s).

Just like the Valuation Office Agency (VOA) we use recognised valuation methods approved by the Royal Institution of Chartered Surveyors (RICS) when valuing non-domestic properties.

Non-domestic properties are properties that are not used as a residence. They include places like shops, offices, holiday lets, stables and pubs.

Our valuation methods have been clarified and confirmed by court decisions over many years.

How we value depends on the type of property and the evidence available.

Most properties are valued using rental comparison. This is the most common and straightforward valuation method. Shops, offices and factories are valued in this way.

Our specialists analyse rental evidence from similar properties to determine a value per £/M².

At first glance, it might seem that measuring a property is straightforward, however, when it comes to correcting your business rates, you don’t want to get it wrong and it’s more complex than you might initially think. This is where Corporate Commercial Surveyors (CCS) can help.

Our specialist rating Surveyors carefully survey properties to find out if you have been overpaying on your business rates.  Not only will we look at the net internal area, but we will also consider the gross internal area.  We will consider what zone your business premises has and should be categorised as.  We will assess your property in its entirety, and anything that we can use to challenge the VOA to make an adjustment will be submitted accordingly.

Most retail premises are valued and compared using a zoned approach.  Shops or retail premises are divided into zones, starting from the window. Typically, each zone has a depth of 6.1 metres although this can vary depending on the location of the property. Zones become less valuable the further they are from the window/entrance. Zone A, which is the closest, is the most valuable as it has the highest potential to generate business for the shop. Zone B is next, then Zone C. Anything after Zone C is usually defined as the remainder.

The VOA uses standard measuring methods based on the Royal Institution of Chartered Surveyors (RICS) former code of measuring practices.

There are two common methods –

The net internal area (NIA) method of measurement is one and is generally applied to:

• Offices
• Shops
• Other retail premises, such as banks, hairdressers, restaurants

The gross internal area (GIA) method of measurement is generally applied to industrial property such as warehouses or manufacturing units.

In some cases it is necessary to use a different method, based on receipts and expenditure, known as Fair Maintainable Trade (FMT) when:

• there is little or no rental evidence
• the purpose of the occupation is to generate a profit for the occupier.

This method involves analysing income and expenditure to see what a reasonable rent might be. Hotels, cinemas and pubs, for example, are valued this way.

The final method of valuation is known as the contractor’s basis. This is used when there are neither rental evidence or trading details to analyse or compare.

This method involves estimating the annual cost of a replacement property.  Properties such as hospitals, schools and prisons are valued this way.