Business Rates, or National Non-Domestic Rates as they are known, are paid on properties that are not for domestic use. They are paid on a variety of different types of property ranging from traditional shops to mobile phone masts.
Each property on the National Non-Domestic Rating list is assigned a rateable value. This is then multiplied by a certain rate in the pound to calculate the amount of business rates that is to be paid each year.
Do I have to pay business rates?
If you lease or own a property that is not for domestic use the chances are you will be required to pay some business rates for it. It will depend on whether your property is included on the Non-Domestic Rating list.
The Valuation Office compiles the list and they decide whether a property should be included the list.
Some properties are exempt from non-domestic rating
What if I run a business from my home?
If you run a business from your home you may have to pay business rates. It will depend on the nature of the business and what parts of your home are used for the business.
It may be that your property is part domestic and part non-domestic. These are called composite properties.
To find out further information on the running a business from your home please visit the Valuation Office website.
What if I run a Bed & Breakfast or have a holiday home?
If you run a bed & breakfast whether you pay business rates or council tax depends on a number of factors. Generally if your bed and breakfast does not sleep more than six people and is not the main use of the property then you won’t have to pay business rates for it. You would pay Council Tax on it.
More detailed information can be found on the Valuation Office website.
Holiday homes are regarded as business properties if they are available for let from 140 or more days throughout the year. If you have a holiday home and you offer it out for let for less than 140 days per year than you would pay council tax for it.
How is my bill calculated ?
Your non-domestic rates bill is initially calculated by multiplying the rateable value by the rate multiplier for the financial year. This is the basic calculation. However your bill may be subject to certain reliefs or transitional phasing.
For example:
£10 000 (rateable value) x 0.444 (national rate multiplier) = £4 400
What is a rateable value?
Every 5 years an assessment is made by the Valuation Office on all non-domestic properties to calculate their rateable values. The current rateable values came into effect from 1 April 2005 and broadly speaking represent the annual rent a property could generate on the open market as at 1 April 2003.
Some premises, such as public houses and mines, have their rateable values calculated differently. For a full explanation of rateable value please contact the Valuation Office.
You can check what is included in your rateable value assessment and check the rateable value of a specific property by visiting the Valuation Office website.
If you are unhappy with your rateable value, you can appeal to the Valuation Office.
What is the multiplier?
Multipliers are set annually by Central Government and are used to calculate the payable amount of business rates.
There are two multipliers. The first is a standard multiplier and the second is a multiplier for persons who qualify for Small Business Rate Relief.
For 2007-08
q the standard multiplier is 0.444
q the Small Business multiplier is 0.441.
For 2008-09 (provisional)
q the standard multiplier is 0.462
q the Small Business multiplier is 0.458
To find out more about small business rate relief click here.
To do an online business rates calculation click here.
Who do I get for my business rates?
The payment of business rates is the way in which businesses contribute towards local services.
The business rates are billed and collected by Castle Morpeth Borough Council. These are then sent to central government and pooled with all the business rates from around the country.
The Government then distributes a proportion of the money back to Castle Morpeth based on the population of the borough.
Can I get any help with my bill?
Depending on your specific circumstances you may qualify for one of the reliefs that are available.