Calculating your business rates
Your rates bill is calculated by applying a multiplier to the rateable value of the premises.
How the rateable value (RV) is worked out
Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the valuation officers of the HMRC Valuation Office, an agency of His Majesty’s Revenue and Customs. They draw up and maintain a full list of rateable values. 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. For the revaluation that came into effect on 1 April 2026, this date was set as 1 April 2024.
The valuation officer may alter the value if circumstances change. The ratepayer (and certain others who have an interest in the property) can appeal against the value shown in the list if they believe it is wrong.
The Valuation Office will continue to fulfil their legal obligations to alter rating assessments if new information comes to light indicating the valuation is inaccurate. Further information about the grounds on which appeals may be made and the process for doing so can be found on the GOV.UK website or obtained from your local valuation office.
Business rates are updated every three years to reflect changes in the property market. This process is called revaluation. They were updated from 01 April 2026 and are due to be updated again from 01 April 2029.
How your bill is calculated
There are five multipliers set by the Government from 1 April each year. Your business rates bill is calculated by applying the multiplier to the rateable value.
New multipliers from April 2026
|
Category |
Rateable Value (RV) |
Multiplier |
|
Small Business - Retail, hospitality and leisure (RHL) |
Below £51,000 |
38.2p |
|
Standard RHL |
£51,000 – £499,999 |
43.0p |
|
Large (All Properties) |
£500,000 and above |
50.8p |
|
Small Business (Non-RHL) |
Below £51,000 |
43.2p |
|
Standard (Non-RHL) |
£51,000 – £499,999 |
48.0p |
Transitional relief
Transitional relief limits how much your bill can change each year as a result of revaluation. The transitional arrangements are applied automatically and are shown on your bill.
Appealing your rateable value
You can appeal against the valuation but only if your rateable value is incorrect. This would be due to a material change in the property's circumstances such as a change in its physical state of use; a physical change in the locality; a change in the use of a neighbouring property. If you have been a victim of flooding there may also be grounds for appeal.
The Valuation Office values all business properties for business rates. The valuation is based on information the Valuation Office holds about your property. You can view and update your property information on the GOV.UK website.
You can contact the Valuation Office through the GOV.UK website. If you are unable to use the online service you can also contact the Valuation Office on 03000 501 501.
Or contact the Valuation Office by post:
HMRC Valuation Office
Durham Customer Service Centre
Wycliffe House
Green Lane
Durham
DH1 3UW
If you receive a request, please complete and submit your up-to-date details. It is important to provide this information to ensure business rates are fair and accurate.
Do I have to continue to pay when I make an appeal?
Legally, rates are payable even if an appeal is underway. Any rates overpaid will be refunded and credited with interest where appropriate.
Rating advisers
Ratepayers do not have to be represented in discussions about their rateable value or their rates bill.
Appeals against rateable values can be made free of charge. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors and the Institute of Revenues, Rating and Valuation are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct.
Before you employ a rating adviser, 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.