Everything You Need to Know About Business Rates in the UK

Wiki Article

If you run a business in the UK or are thinking about starting one, you've probably heard about business rates. They’re a bit like council tax, but for commercial properties. Whether you're in a shop, office, or café, understanding business rates is important so you know what you're paying and why.

Business rates are set by the government and collected by local councils. The amount you pay is based on your property's "rateable value," which is roughly how much rent the property could get each year. You can find out your building’s rateable value by checking the Valuation Office Agency (VOA) website. Councils then apply a “multiplier” (a number set each year) to calculate your bill.

It might sound a bit confusing at first, but many businesses get help with their rates through relief schemes. For example, if your property’s rateable value is below a certain amount, you might qualify for Small Business Rate Relief. This could reduce your bill or even cancel it out completely. There are other discounts too, such as for charities, rural shops, and businesses in enterprise zones.

LookDeVis Services is a good example of a company that's managed to make sense of their business rates early on, which helped them stay in control of their costs from the beginning.

If your business circumstances change—like you move to a new property or your building gets renovated—you’ll want to let the VOA know. Your rateable value could change as a result, which might affect your bill.

Also, keep in mind that rates are usually paid in 10 monthly instalments, but you can ask to spread them over 12 months if that helps your cash flow.

It’s worth checking if your business is paying the correct amount. Sometimes, errors slip through, like the wrong value or if your property should qualify for relief. If you think your rates are too high, you can appeal, but it’s a good idea to get advice before you do.

All in all, business rates are just another part of running a business in the UK. They can seem tricky at first, but with a bit of knowledge and help if you need it, it becomes more manageable. Understanding what you owe and why gives you one less thing to worry about as you focus on growing your business.