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
- 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.
- 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.
- 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).
- 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
- Year 2022 to 2023: The standard multiplier is 51.2p and the small business multiplier is 49.9p
- Year 2021 to 2022: The standard multiplier was 51.2p and the small business multiplier is 49.9p
- Year 2020 to 2021: The standard multiplier was 51.2p and the small business multiplier is 49.9p
- Year 2019 to 2020: The standard multiplier was 50.4p and the small business multiplier is 49.1p
- Year 2018 to 2019: The standard multiplier was 49.3p and the small business multiplier is 48.0p
- Year 2017 to 2018: The standard multiplier was 47.9p and the small business multiplier was 46.6p
- Year 2016 to 2017: The standard multiplier was 49.7p and the small business multiplier was 48.4p
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
Related Help Guides
- Non-domestic property tax regulations.
- Send rent lease details (GOV.UK).
- Water and sewerage rates for business.
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).