Business rates

What are business rates?

Why do you pay Business Rates and what is the money used for?

Business Rates or Non-Domestic Rates, as they are sometimes known, are a tax payable for all occupied and some unoccupied business premises. If your property has a business part and a domestic part, e.g. if you run a Public House, you will pay Business Rates on the business premises and Council Tax on your living accommodation.

Business Rates are payable to the Council who collect them on behalf of the Government. The Business rates collected by the Council are paid into a Central Government pool and redistributed to local authorities throughout the country. This Council's share of the redistributed business rate income, together with income from council taxpayers, the revenue support grant provided by the Government, and certain other sums, is used to pay for the services provided by the Council within South Somerset District Council.

Please see Your Guide for services covered and where the money goes.

For further information please contact us.

Who must pay Business Rates

In the case of occupied property, the person or company occupying it is liable for paying the rates. Sometimes, a landlord may charge an occupier a rent, which is inclusive of rates. In these cases, the occupier is still the person liable for payment and the bill is sent in his/her name. The Council will not become involved in private arrangements between the landlord and tenant regarding payment of business rates.

For unoccupied or empty properties the owner or the person entitled to possession, which can consequently include lessees are liable.

Information regarding Business Rates releif

How we calculate your business rates

How are the business rates calculated for 2011/12?

The multiplier, also sometimes referred to as the Uniform Business Rate (UBR), 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 the property that you will pay in Business Rates.

Since April 2005, there have been two multipliers. The small business multiplier, applicable to those businesses eligible for Small Business Rate Relief, is set at 45.0p (2012/2013). The standard multiplier, which includes the supplement to pay for Small Business Rate Relief, is set at 45.8p (2012/2013).

If you are entitled to any transitional arrangements or reliefs, this sum is then adjusted to reflect them, making a final total for your rates bill. The multiplier usually changes each year in line with inflation.

2009/2010 the Rating Multiplier is 0.485p for Small Businesses it is 0.481p

2010/2011 the Rating Multiplier is 0.414p for Small Businesses it is 0.407p

2011/2012 the Rating Multiplier is 0.433p for Small Businesses it is 0.426p

2012/2013 the Rating Multiplier is 0.458p for Small Businesses it is 0.450p

For further information please contact us.

How to pay

Business rates are payable in 10 monthly instalments, normally from April to January each year. The cheapest and most efficient way to pay is by direct debit -

If you do not choose to pay by direct debit, payment must be made on, or by, the 1st of each month.

If you miss one or more of your monthly instalments you may lose the right to pay monthly and legal action could be taken against you for the amount you owe for the whole year.

If you are having difficulty paying your business rates it is important that you contact us as quickly as possible so we can try to help.

You can also pay online, or over the telephone 

Alternatively, you can apply to pay by direct by completing the Business Rates Direct debit form.

PLEASE DO NOT SEND CASH THROUGH THE POST.

What is the rateable value?

The rateable value of each business property is used as the basis for the calculation of the business rates payable for that property.

The rateable value reflects the maximum yearly rent, which a tenant would be prepared to pay to rent a property under perfect market conditions. The rateable value is calculated by the Valuation Office Agency (VOA).

The Valuation Office Agency carries out revaluation of all rateable values every five years. The full rating list can be viewed on the Valuation Office Agency website.

The current values with effect from 1 April 2010 are based on the annual open market rental value figures as at 1 April 2008.

The purpose of the revaluation is not to change the amount of money collected in rates nationally, but to make sure that individual rateable values reflect the changes that have taken place since the last revaluation. Most businesses will have received a summary valuation, which explained how the VOA has worked out their new rateable value

How to appeal your rateable value

The Valuation Officer may alter the value of a property if he believes that the circumstances of the property have changed. you may also be able to make a 'Proposal to Alter the Rating List'. This 'proposal' asks the valuation officer to change the entry in the list - if the valuation officer cannot reach agreement with you as to any change that is needed then the matter will be treated as an appeal and referred to the Valuation Tribunal.The ratepayer may also propose a change in value.

If there are any circumstances where the ratepayer and Valuation Officer do not agree, the matter will be referred as an appeal to the Valuation Office Tribunal Service.

Appeals against rateable values can be made free of charge. However, ratepayers who do wish to be represented should be aware that members of the Royal Instition of Chartered Surveyors and the Institue of Revenues Rating and Valuation are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct.

You can find out more on the Business Link website