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Calculate Your Business Rates

The use of a property for business (e.g. offices, pubs, shops) may render it liable for a special kind of taxation - called business rates.

This help guide shows how to estimate your business rates in England or Wales. But, it will be your local council that makes the final calculation.

ESTIMATING BUSINESS RATES: Follow the steps below by multiplying the rateable value of the business by a multiplier value.

Note: The government sets and applies small business multipliers before any rate relief reductions occur.

Properties in England or Wales

  1. The first step is finding the rateable value of your business based on its location (postcode). The figure you get will be an estimate of the open market rental value of the property on the 1st of April 2015.
  2. You then need to select the correct 'multiplier value' from the table below. The standard multiplier applies to rateable values of £51,000 and over. You should use the small business multiplier if the rateable value of your property is less than £51,000.
  3. The next step is to multiply the rateable value by the multiplier. This calculation shows how much you must pay in business rates (before any rate relief deductions).
  4. The final step is to deduct any business rates relief that you have entitlement to. In some cases, they may increase following the business rates revaluation 2017. If so, it should include transitional relief so changes to the bill get phased in instalments.

Business Rates Multiplier Table

Year 2022 to 2023: The standard multiplier is 51.2 pence and the small business multiplier is 49.9 pence

Note: If the rateable value is below £18,000 (or £25,500 in Greater London) you can use the small business multiplier before 2017/18. Different multiplier values apply in parts of Wales and in the City of London.

Business Rates Example Calculation:

Barry runs a business in Manchester, England. The rateable value of his business is £10,000.

He would use the 2022 to 2023 small business multiplier (49.9 pence) to estimate business rates as follows:

£10,000 (rateable value) x £0.499p (multiplier) = £4,990 (basic business rates).

Note: In this example, the rateable value of the commercial property is less than £15,000. So, Barry may qualify to reduce his rate bill by applying for small business rate relief.

Properties in Scotland and Northern Ireland

The process used to estimate business rates differs in Scotland and in Northern Ireland. Thus, you should use the business rates calculator in Scotland and the rates calculator in Northern Ireland.

Related Help Guides

Note: The short video [3:20 seconds] explains how the Valuation Office Agency (VOA) uses zoning to assess retail properties for business rates purposes (e.g. non-domestic rating).

How to Calculate Business Rates in the United Kingdom