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A Guide To Your Rates Bill

The first page of your rates bill will show the details of the rates year to which the bill applies, the property that the bill relates to, information about that property including its rateable value and description, the multipliers in use for the rate year and a summary of your rates charge.

The second page of your bill gives detailed information on how your rates have been calculated, your current payment method, the instalments to be paid and the due dates for the instalments.

A brief explanation of the different aspects of the rates bill is shown below.

right arrow greenThe rateable value

right arrow greenThe multipliers

right arrow greenHow the rates are calculated

right arrow greenTransitional arrangements

The Rateable Value

All non-domestic properties have a rateable value.  The Valuation Office Agency (VOA), an agency of the Inland Revenue is responsible for setting the rateable value. The figure is based on a professional assessment of the annual rent of a property if it was available to let on the open market at a fixed valuation date.

The rating list that will come into effect on 1 April 2010 is based on a valuation date of 1 April 2008 - all properties are valued from the same date to ensure that they are assessed on a level basis. The VOA gathers as much evidence as possible about actual rents paid for properties in order to determine appropriate rental values.

The rateable value of your property is not the amount you pay in business rates, but it is the basis for the calculation of your business rates bill.

Information on what to do if you think your rateable value is wrong is shown on the appeals and advice page in the How To Reduce Your Rates Bill section.  Alternatively you can access the VOA website Internet Link for more information about your rateable value.

The Multipliers

The multiplier is a key factor in the calculation of your rates bill. It is set annually by central government and determines the percentage (expressed as pence in the pound) of the rateable value of your property that you will pay in business rates.

Since 1 April 2005, two multipliers have been in effect, these are known as the standard multiplier and the small business multiplier.

The small business multiplier is applicable to those businesses eligible for small business rate relief.  For 2010/11 this has been set at 40.7p.

The standard multiplier, which includes a supplement to pay for Small Business Rate Relief, is set, for 2010/11, at 41.4p.

The multipliers usually change each year in line with inflation.

More information about Small Business Rate Relief can be found on the How To Reduce Your Rate Bill page.

How the rates are calculated

In the simplest cases the rates liability is calculated by multiplying the rateable value by the standard multiplier.

If your property had a rateable value of £17,000 your rates would be calculated as 17,000 * 0.414 = £7,038, however this amount would then be subject to transitional arrangements.

Transitional Arrangements

Property values normally change a good deal between each revaluation.  Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation.  

To help pay for the limits on the increases in bills after revaluation, there also have to be limits on reductions in bills.  Under the transition scheme limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the multiplier).

Transitional arrangements only apply to the bill based on a property at the time of revaluation.  If there are any changes to the property after the revaluation date, transitional arrangements will not normally apply to the part of a bill that applies to any increase in rateable value due to those changes.

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This page was last reviewed 28 November 2013 at 14:17 by Web Team.
The page is next due for review 27 May 2014.
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Bromsgrove District Council, The Council House, Burcot Lane, Bromsgrove, Worcestershire, B60 1AA - Directions to Council Offices