You can calculate the amount of business rates you will need to pay by using the following formula and using the multiplier set by the government. This will allow you to assess the rateable value of your business. It is the number of pence per pound that you will be required to pay in business rates.
Currently, if you are based in England, up until 31 March 2014 you’ll get 100% relief for commercial space with a rateable value of £6,000 or less. Meaning you will pay no business rates.
This relief decreases gradually from 100% to 0% for commercial space with a rateable value between £6,001 and £12,000.
If you have more than one office, you might be eligible for small business rate relief if the rateable value of each of your other properties is less than £2,600.
The rateable values of the properties are added together and the relief applied to the main property.
If your property has a rateable value below £18,000 (£25,500 in Greater London) you qualify for small business criteria.
The multiplier shows the percentage (pence in the pound) of the rateable value that you pay in business rates. A list of current multipliers is on the Valuation Office Agency (VOA) website.
To estimate your business rates you will need to follow these steps:
|England||City of London||Wales|
|Standard||Small businesses||Standard||Small Businesses||Standard|
If you are based in Scotland you will still need to work out the rateable value of your business. You are able to find all you need to know and how to work out the rateable value on the Scottish Assessors Association website.
|Combined rateable value (RV) of all business properties in Scotland:||2012-13|
|Up to £10,000||100%|
|£10,001 to £12,000||50%|
|£12,001 to £18,000||25%|
|Upper limit for cumulative (RV)* £25,000||25%|
You can use the calculator on the Scottish Government website.