Business rates

Explanatory notes for business rates

Non-domestic rates

Non-domestic rates, or business rates, collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services. Under the business rates retention arrangements introduced from 1 April 2013, we keep a proportion of the business rates paid locally. This provides a direct financial incentive for us to work with local businesses to create a favorable local environment for growth since we will benefit from growth in business rates revenues.

The money, together with revenue from Council Tax, locally-generated income, and grants from central government, is used to pay for the services provided by your local authority and other local authorities in your area.

Read more about business rates on GOV.UK, including transitional and other reliefs.

Rateable value

Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the valuation officers of the Valuation Office Agency (VOA), an agency of Her Majesty's Revenue and Customs. Officers draw up and maintain a full list of all rateable values; view values on the VOA's website.

The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date, specified in legislation. For the current rating list, this date was set as 1 April 2021.

The valuation officer may alter the value if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong.

If you are concerned that your business rates may be incorrect, you can check the information the VOA has used and let them know if something is incorrect using this guide: Check and challenge your business rates valuation: step by step - GOV.UK.

To contact the VOA, please use their general enquiries form.

Non-domestic rating multiplier

We work out the business rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers: the standard non-domestic rating multiplier and the small business non-domestic rating multiplier.

Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to certain other mandatory relief(s) or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the standard non-domestic rating multiplier.

The multiplier for a financial year is based on the previous year’s multiplier, adjusted to reflect the Consumer Price Index (CPI) inflation figure for the September prior to the billing year unless a lower multiplier is set by the government. In the Autumn Budget 2023, the Chancellor announced that the government would freeze the small business multiplier at 49.9p for 2024/25, while uprating the standard multiplier by CPI inflation.

The current multipliers are shown on the front of your bill.

Business rates instalments

Payment of business rate bills is automatically set on a 10-monthly cycle. However, the government has put in place regulations that allow businesses to require us to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact us as soon as possible:

Email: businessrates@centralbedfordshire.gov.uk
Telephone: 0300 300 8011

Direct Debit

Direct Debit is the easiest way to pay your bill. If you’re a sole trader, the quickest way to set up your Direct Debit is to complete our online form.

Set up your business rates Direct Debit

If your bank or building society requires more than one signature to set up a Direct Debit, then please download a Direct Debit mandate form or call us on 0300 300 8306 to have a paper form sent to you.

The Direct Debit will be collected each month (as detailed on a schedule we will send you), and you are fully protected against mistakes under the terms of the Direct Debit Guarantee. You can make your payments on either the 5th, 9th, 19th, or the last day of each month. Alternatively, you may pay half-yearly on 9 May and 9 October, or annually on 9 June.

Revaluations

All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1 April 2021. Revaluations ensure that business rates bills are up-to-date, more accurately reflect current rental values, and relative changes in rents. Frequent revaluations ensure the system continues to be responsive to changing economic conditions.

Find out more about Revaluation 2023 on GOV.UK.

Transitional rate relief

At a revaluation, some ratepayers will see reductions or no change in their bill, whereas some ratepayers will see increases. Transitional relief schemes are introduced at each revaluation to help those facing increases. Transitional relief is automatically applied and is shown on the front of your bill.

Find out more about revaluation and transitional relief on GOV.UK.

Business rates reliefs

Depending on individual circumstances, a ratepayer may be eligible for rate relief (i.e., a reduction in your business rates bill). There are a range of available reliefs. Some of the permanent reliefs are set out below, but temporary reliefs are often introduced by the government at budgets.

Read more about reductions and reliefs.

Unoccupied property rate relief

Business rates are generally payable in respect of unoccupied non-domestic property. However, they are generally not payable for the first three months that a property is empty. This is extended to six months in the case of certain industrial properties. After this period, rates are payable in full. In most cases, the unoccupied property rate is zero for properties owned by charities and community amateur sports clubs, as well as other properties such as vacant listed buildings, which are not liable for business rates until they are reoccupied. In addition, there are a number of exemptions from the unoccupied property rate.

Small business rate relief

Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to other mandatory relief or are liable for unoccupied property rates) will have their bill calculated using the lower small business non-domestic rating multiplier, rather than the standard non-domestic rating multiplier.

In addition, generally, if the sole or main property is shown on the rating list with a rateable value that does not exceed £15,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 100%. For a property with a rateable value of not more than £12,000, the ratepayer will receive a 100% reduction in their rates bill.

Generally, this percentage reduction (relief) is only available to ratepayers who occupy either:

  • one property or
  • one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899

The aggregate rateable value of all the properties mentioned in (b), must not exceed £19,999 outside London or £27,999 in London on each day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.

The government has introduced additional support to small businesses. For those businesses that take on an additional property which would normally have meant the loss of small business rates relief, the government has confirmed that they will be allowed to keep that relief for a period of 12 months.

If you meet the eligibility criteria and have not received the relief, please contact us:

Email: businessrates@centralbedfordshire.gov.uk
Telephone: 0300 300 8011

Charity and community amateur sports club relief

Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the charity or the club and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs).

We have discretion to give further relief on the remaining bill.

For full details, please contact us:

Email: businessrates@centralbedfordshire.gov.uk
Telephone: 0300 300 8011

Supporting Small Business Relief

Ratepayers losing eligibility for some or all of their Small Business Rate Relief or Rural Rate Relief as a result of the 2023 revaluation have had their increases limited to £600 for the 2023 to 2024 tax year and £1,200 for the 2024 to 2025 tax year. This means that no small business losing eligibility for Small Business Rate Relief or Rural Rate Relief will see their bill increasing by more than £50 per month in 2023/24 and £100 per month in 2024/25.

Charities and Community Amateur Sports Clubs, who are already entitled to 80% Mandatory Relief, are not entitled to Supporting Small Business Relief. Eligibility for Supporting Small business Relief will cease if the property becomes vacant or becomes occupied by a charity or Community Amateur Sports Club. A change of ratepayer will not affect eligibility for the Supporting Small Business scheme. The Supporting Small Business Relief scheme will continue for a period of three years or until they reach the bill they would have paid without the scheme being in place.

The Supporting Small Business Relief scheme is likely to amount to a subsidy. Therefore, any relief provided by Central Bedfordshire Council under this scheme will need to comply with the UK’s domestic and international subsidy control obligations.

Find out more about Supporting Small Business Relief on GOV.UK.

2023 to 2025 Retail, Hospitality, and Leisure Scheme

At the Autumn Statement on 17 November the Chancellor announced the introduction of a new business rates relief scheme for retail, hospitality, and leisure properties worth around £2.1 billion in 2023 to 2024.

The 2023/24 Retail, Hospitality, and Leisure business rates relief scheme will provide eligible, occupied, retail, hospitality, and leisure properties with a 75% relief, up to a cash cap limit of £110,000 per business. The Government has extended this scheme for the financial year 2024/25. This relief has been applied automatically to those businesses we consider to be eligible and this will be detailed on your 2024/25 annual bill.

Find out more about Retail, Hospitality, and Leisure Relief on GOV.UK

Subsidy control

The new UK subsidy control regime commenced on 4 January 2023. The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities giving subsidies must comply with the UK’s international subsidy control commitments. The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime.

Local discounts

We have a general power to grant discretionary local discounts.

For full details, please contact us:

Email: businessrates@centralbedfordshire.gov.uk
Telephone: 0300 300 8011

Hardship relief

We have discretion to give hardship relief in specific circumstances.

For full details, please contact us:

Email: businessrates@centralbedfordshire.gov.uk
Telephone: 0300 300 8011

Rating advisers

Ratepayers do not have to be represented in discussions about their rateable value, their rates bill, or any other reductions or reliefs they may be entitled to. Appeals against rateable values can be made easily and free of charge.

Read more about reductions and reliefs, or ask us:

Email: businessrates@centralbedfordshire.gov.uk
Telephone: 0300 300 8011

You can find out how to appeal your rateable value from GOV.UK, or call us on 0300 300 8011.

However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS) and the Institute of Revenues, Rating, and Valuation are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating adviser, you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.

Rate relief for businesses in rural areas

Certain types of properties in a rural settlement with a population below 3,000 may be entitled to relief. The property must be the only general store, the only post office, or a food shop and have a rateable value of less than £8,500, or the only public house or the only petrol station and have a rateable value of less than £12,500. The property must be occupied. An eligible ratepayer is entitled to relief at 100% of the full charge.

For full details, please contact us:

Email: businessrates@centralbedfordshire.gov.uk
Telephone: 0300 300 8011

Information supplied with demand notices

Read about our gross expenditure in relevant and previous financial years.

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