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How to calculate your business rates

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.

England and Wales

To estimate your business rates you will need to follow these steps:

  1. Find the rateable value of your business by postcode. This can be done at the Valuation Office Agency
  2. You will then need to find the correct multiplier which applies to you. This is based on the size and the location of your business. Contact your local council to see if your business is suitable for the small business multiplier

    Current multipliers:

      England City of London Wales
      Standard Small businesses Standard Small Businesses Standard
    2012/2013 45.8 45.0 46.2 45.4 45.2
  3. You then need to multiply your rateable value by the correct multiplier from the table above. This calculation shows you how much you will pay in business rates prior to any relief that is deducted.
  4. The final step is to subtract any business rate relief. You may even be entitled to small business rate relief. Click here to find out more.

Scotland

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.