Business rates explained for company premises

2 min read

Rateable valuex multiplier

Small business reliefBelow a threshold

Fixed costBudget for it

How the bill is calculated

Your business-rates bill is broadly the property's rateable value — the Valuation Office's estimate of its open-market annual rent at a set date — multiplied by the rating multiplier set each year. Reliefs then reduce the figure. It is a property tax, not a profit tax, so it is due whether or not you are trading well.

Small business rate relief

Businesses occupying a single property below a rateable-value threshold can get small business rate relief, which can reduce or even remove the bill for the smallest premises. There are also reliefs for retail, hospitality and leisure, and for empty and rural properties. Check every relief you might be entitled to.

Challenging your rateable value

If you believe your rateable value is too high — perhaps the market rent has fallen, or the property has changed — you can check and challenge it through the Valuation Office. A successful challenge can cut the bill and sometimes refund overpaid rates, so it is worth reviewing after any material change.

Budgeting for it

Because rates are a large, fixed, non-negotiable cost, they belong in your cash-flow forecast as a known monthly outflow. Spreading the annual bill over instalments smooths the impact — most authorities offer monthly payment.

Funding a premises move

Rates, deposits and fit-out make relocating expensive. A working-capital facility funds the move while trading continues.

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.

See funding a business relocation.

Frequently asked questions

How are business rates calculated?

By multiplying the property's rateable value — the Valuation Office's estimate of its annual open-market rent — by the year's multiplier, then applying any reliefs. It is a property tax, due regardless of how profitable you are.

Can I reduce my business rates?

Possibly. Check for small business rate relief and sector-specific reliefs, and challenge your rateable value through the Valuation Office if you think it is too high. Both can cut the bill, sometimes with a backdated refund.

Do I pay business rates on an empty property?

Usually there is a short exemption period, after which empty-property rates apply, though some categories get longer relief. Check the current rules, because empty premises can carry a surprising ongoing cost.