UK Business Rates Calculator

Business rates are a tax on non-domestic properties, similar to council tax for homes. They are charged on most commercial properties including shops, offices, pubs, warehouses and factories. The amount you pay is based on the rateable value of your property, which is set by the Valuation Office Agency (VOA) and represents the open market rental value on a set valuation date.

The Valuation Office Agency assesses rateable value based on the annual open market rental value of a property on a specific valuation date. The current rating list uses 1 April 2021 as the valuation date. Factors include property size, location, condition and use. The VOA uses evidence from actual rents paid on similar properties. You can check your rateable value on the GOV.UK website.

For 2025/26, the standard business rates multiplier is 54.6p in the pound. The small business multiplier is 49.9p. This means a property with a rateable value of £50,000 would pay £27,300 per year before any reliefs (54.6p x 50,000). The multiplier is set annually by central government and typically increases with inflation.

Small Business Rate Relief (SBRR) provides relief for businesses occupying a single property with a rateable value below £15,000. Properties with a rateable value of £12,000 or below receive 100% relief, meaning no rates to pay. For rateable values between £12,001 and £15,000, relief tapers from 100% to 0%. You must occupy only one property or your other properties must each have a rateable value below £2,900.

Empty commercial properties are exempt from business rates for the first three months of being empty (six months for industrial properties). After this period, full rates become payable. Listed buildings, properties with a rateable value below £2,900, and properties where the owner is in administration or liquidation may qualify for extended empty property relief.

Business rates are billed by your local council and can usually be paid in 10 monthly instalments from April to January, or in 12 monthly instalments if you request this. Most councils accept direct debit, online payment, telephone payment or payment at a bank or post office. You can also pay in a single lump sum. Contact your local council to set up payment.

Yes, you can challenge your rateable value through the Check, Challenge, Appeal process. First, check your property details on the VOA website and report any errors. If you still disagree, submit a formal challenge with evidence of comparable rental values. If the challenge is rejected, you can appeal to the Valuation Tribunal for England. The process can take several months to years.

Transitional relief limits how much your bill can change following a revaluation. If your rateable value increases significantly, transitional relief caps the annual increase, phasing it in over several years. Conversely, if your rateable value decreases, transitional arrangements also phase in the reduction. This protects businesses from sudden large changes in their rates bill.

Registered charities that occupy a property mainly for charitable purposes qualify for mandatory 80% business rate relief. Local councils can choose to give an additional discretionary 20% relief, making it 100%. Community amateur sports clubs (CASCs) also qualify for mandatory 80% relief. Non-profit organisations that are not registered charities may apply for discretionary relief.

Scotland and Wales set their own business rates multipliers and relief schemes. Scotland uses the poundage rate set by the Scottish Government, and offers a Small Business Bonus Scheme with different thresholds. Wales sets its own multiplier through the Welsh Government. The core structure is similar but specific multipliers, relief thresholds and eligibility criteria differ from England.