October 5, 2022

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News and Update

Check Your Business Rates Valuation: Step by Step

The Valuation (Assessment) Notice gives you details of the calculation of your business rates bill. It tells you what is charged for the space that your business occupies and the rates category that it falls into.

The valuation notice also shows how much your property was worth at 1 April 2015, which helps to determine how much to charge for business rates from then on. The valuation notice will list three figures: the annual rateable value (ARV), the multiplier and total payable in pounds.

Annual Rateable Value

The Annual Rateable Value (ARV) is the total worth of your property, including the land and buildings on it, multiplied by a figure from 1 April 2015 called the multiplier. The multiplier is a way that the local government can work out how much business it expects to receive from each unit. It allows for factors like changes in property prices and other factors that affect how much to charge for business rates.

The ARV is based on the ‘current value’ of the property, which means what it would be worth if you sold or let it today. The ARV does not include money you have already spent or you expect to spend on improvements in connection with your business or its premises before 1 April 2015. Local government has already taken this into account in making the calculation for 1 April 2015.

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The multiplier is a number between 1 and 5. It is based on the ‘whole market rental value’ of your premises, so it takes into account factors such as a shop’s location and its appearance, as well as its size. If you think you have been allocated the wrong multiplier contact your valuation officer at your local council’s business rates department.

I have a larger property than the one in the valuation notice. Could this be the reason for the difference?

No. The ‘property description’ on your notification explains what is included in your valuation or rateable value and what isn’t.

If you think that there may be a mistake, contact your local council’s business rates department immediately – they can hopefully help you to work out why there is a difference. You’ll need to provide them with details of your business, its location and other information to help them make their decisions. If they agree that there has been an error, it will be corrected by adjusting your rates bill accordingly (but remember that there will still be an increase every year). The Council issued a valuation notice for my business premises in October. But the multiplier on that valuation notice was at least two years old. 

Has the Council made any changes to how much I have to pay?

No. The current multiplier is not going to change, but if you think that the value of your property has risen (as might be expected if you have recently sold it or let it out) you should contact your tax office and ask them to adjust your rates bill accordingly. That way you won’t be overcharged as a result of a change in the market value of your property.

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If you think that your council’s billings are unfair, you could ask for an independent review of the business rates bill. But be aware that if your total claim is more than £100 they may charge you an administration fee of £250. I have self-employed staff and/or a shop and cant help but wonder just how much business rates I am actually being charged.

Conclusion

The value of your rateable property is a simple calculation. If you have any questions, please ask for a copy of the valuation notice that the Council has given you (you can find it in your ‘notification’ email inbox). Any questions about the Billing should be directed towards the Councils Business Rates Department.