Business rates
About your business rates bill
Information about your business rates bill.
How your business rates are calculated
There are 3 steps to calculating your business rates bill:
- Rateable value – This is an estimate by the Valuation Office Agency (VOA) of how much it would cost to rent a property for a year as of 1 April 2021
- Multiplier – Multiply your rateable value by your multiplier to show you how much you will have to pay in business rates before any relief is deducted
- Relief – Take away any business rate relief that you’re entitled to
Rateable value
The Valuation Office Agency (VOA) assigns a rateable value to each business property based on its estimated rental value as of 1 April 2021.
Multiplier
The multiplier is set by central government and is adjusted in line with the rate of inflation.
- If your rateable value is £51,000 or more, use the standard multiplier
- If your rateable value is below £51,000, use the small business multiplier
| Year | Standard multiplier | Small business multiplier |
|---|---|---|
| 2025 to 2026 | 55.5 pence | 49.9 pence |
| 2024 to 2025 | 54.6 pence | 49.9 pence |
| 2023 to 2024 | 51.2 pence | 49.9 pence |
Relief
Some businesses are eligible for a reduction in their business rates bill, known as business rates relief.
If your business rates have increased due to the 2023 revaluation, this may include transitional relief so that changes to your bill are phased in gradually.
Example calculation
Shop X has a business property with a rateable value of £50,000, so the small business multiplier of 49.9 pence for 2025 to 2026 is used to estimate the business rates as follows:
- £50,000 (rateable value) x £0.499 pence (multiplier) = £24,990 (basic business rates)
- As the business is a shop, they may be able to reduce the bill by 40% by applying for retail, hospitality and leisure relief
- £24,990 less 40% (£9,996) = £14,994
Central government sets the retail, hospitality, and leisure relief rates. In 2024 to 2025, the relief was 75%, but it was reduced to 40% in 2025 to 2026. This reduction may explain the rise in business rates for some businesses.