Business rates

What are Business Rates?

All UK businesses are obligated to pay tax on the commercial premises they occupy, including shops, warehouses, offices, factories, and so on. Broadly speaking, Business Rates are a representation of the annual rent the property could be let on the open market, with the intention to reflect current market conditions. Combining the ‘multiplier’ set by the government each year determines the final figure payable by your business. 

Essentially Business rates are worked out based on your property’s rateable value.  This is its open market rental value on 1 April 2015, based on an estimate by the Valuation Office Agency (VOA).

Rates Relief and Exemptions

All businesses with properties that have rateable value under £12,000 will be entitled to apply for Business Rate Relief and in most instances will benefit from no rating liability.

If your property has a rateable value between £12,000 and £15,000 you will get some tapered relief. Factors such as population, type of use, and type of building can benefit from a reduction or full exemption from rates, for example; agricultural land and religious buildings.

How Petty Commercial can help

Business Rates is one of the largest overheads for businesses and we can assess the impact of new rates on your liability, ultimately saving money for businesses.

Most revaluations have shown a fall in rates, however, if you would like to discuss the check challenge and appeal system, please provide your business address and contact information below.