How to check your business rates liability

First things first: find your property's 'rateable value'

To find out how much you need to pay in Business Rates, you first need to find the ‘rateable value’ (RV) of your commercial property. This value is set by the Valuation Office Agency (VOA), and you can find it easily online. Your local council then uses this value to calculate your actual bill, but the good news is you may be eligible for significant discounts or even full relief.

What are Business Rates?

Think of Business Rates as the commercial equivalent of Council Tax. It’s a tax on non-domestic properties, including shops, offices, pubs, and warehouses. The money collected contributes to the funding of local services, from fire services to street lighting.

How your bill is calculated

The calculation itself is straightforward. The VOA gives your property a rateable value, which is its estimate of the property's open market rental value on a specific date. The central government then sets a ‘multiplier’ each year. Your council multiplies these two figures together to determine your annual bill before any discounts are applied.

Rateable Value (RV) x Business Rates Multiplier = Your annual bill (before reliefs)

How to check your rateable value and get an estimate

Finding your property's rateable value is a simple, quick process that will give you a clear estimate of your liability. Here are the steps:

1. Go to the Find and check your business rates valuation page on the GOV.UK website.
2. Enter the postcode of your business premises.
3. Select your property from the list to see its current rateable value and a history of any changes.
4. The service will also provide an estimated bill based on this value, which is a great starting point for your budget.

Don't pay more than you need to: check for reliefs

The estimated bill is rarely the final amount you'll pay. Many small businesses qualify for reliefs that can reduce the bill dramatically.

The most common is Small Business Rate Relief (SBRR). Generally, if your property’s rateable value is below £15,000, you may be eligible for some level of relief. If the RV is £12,000 or less, you might not have to pay any Business Rates at all.

Other reliefs are also available, for example, for businesses in the retail, hospitality, and leisure sectors, or for properties that are empty. You must apply to your local council to get these reliefs – they are not usually applied automatically.

Your next steps

Once you have found your rateable value on the VOA website, your next port of call is the business rates department of your local council. They will send you the official bill and, most importantly, they are the people you need to talk to about applying for any reliefs you are entitled to. Getting this sorted early will give you a clear and accurate picture of one of your main ongoing business costs.