How are business rates calculated
The charges for Business rates are calculated by multiplying the rateable value of an individual property by the national non-domestic multiplier. The result of this calculation is the amount of rates payable for the year.
What is the rateable value?
The Valuation Office Agency sets each non-domestic property a rateable value and maintains a rating list.
The rateable value broadly represents the yearly rent of the property at a particular date in time and will be shown on the front of your bill.
The rating list contains information about non-domestic properties within a billing authority area. This information includes:
- the address of the property
- a description code
- whether the property is partly domestic (a composite property)
- the property's rateable value
In maintaining the rating list a valuation officer may alter the value if they believe the circumstances of the property have changed for example, building or demolishing an extension. Therefore such changes must be reported to us immediately.
What is the National Non-domestic Multiplier?
The 'National Non-Domestic Rating Multiplier'
is a 'rate in the pound' used to calculate your rates.
Set by Government and inflation restricted, changes are effective for the fiscal year.
What happens when a revaluation occurs?
The multiplier can only increase by more than inflation in a year of revaluation.
Significant changes in your rateable value could be made due to increasing and decreasing property values. Transitional arrangements automatically limit changes to your rates.
You do not have to be represented in discussions about your rateable value but you can employ independent rating advisors to handle proposals.
It is important that you ensure your advisers have the right level of knowledge and expertise, and appropriate indemnity insurance. Ideally, they will be members of the Royal Institution of Chartered Surveyors and/or Institute of Revenues and Rating who are regulated by rules of professional conduct.
Appealing against the rateable value
If you believe your rateable value is incorrect, or the circumstances of your property have changed, you may be able appeal against it.
For further information visit the VOA website or Gov.uk .Source: www.solihull.gov.uk
Category: Personal Finance