How to register for business rates

If your business operates from a non-domestic property like a shop, office, or workshop, you must register with your local council to pay Business Rates. The most important thing to do when registering is to check if you qualify for Small Business Rate Relief, as this could reduce your bill to zero. Get this sorted as soon as you sign your lease to avoid any unexpected bills.

What are Business Rates?

Think of Business Rates as the business equivalent of Council Tax. It’s a tax on non-domestic properties that contributes towards funding local services, from fire services to street lighting. Whether you own or rent your premises, the responsibility for paying usually falls to the person or business occupying the property.

How to Register Step-by-Step

The process is managed by your local council and is usually quite straightforward.

1. Find Your Local Council: The first step is to identify the correct local authority for your business premises. The easiest way to do this is by using the GOV.UK council finder and entering your property's postcode.
2. Locate the Business Rates Section: Once on your council's website, look for a section labelled 'Business Rates'. This is usually found under a 'Business' or 'Council Tax & Benefits' heading.
3. Complete the Registration Form: Most councils have an online form to register a new business for rates. You will need to provide key details, such as your business name, the property address, and the date your lease or ownership began.

Understanding Your Bill and Rate Relief

Your bill is calculated based on two things: the property's 'rateable value' (an estimate of its open market rental value) and a 'multiplier' set by the central government. Your council will tell you the rateable value of your property.

Key Tip: Don't just accept the first bill without question. The most significant way to lower your costs is through Small Business Rate Relief.

If your property's rateable value is below £15,000, you may be eligible for this relief. If the value is £12,000 or less, you could get 100% relief, meaning you pay nothing at all! You must apply for this relief through your local council; it isn't always applied automatically. The application is usually a simple form on their website, so make sure you enquire about it when you register.

Registering for Business Rates is an essential task. By getting it done promptly and applying for any available relief, you can ensure your business is compliant and that you are not paying more than you need to.