Business Rates
How are Business Rates calculated?
Every property liable for Business Rates is listed with the Valuation Office Agency, an office of the Inland Revenue. The Valuation Office Agency has assessed every property so that it has a "rateable value". Check your rateable value with the valuation office business rate page http://open.voa.gov.uk/ (this is an external hyperlink)
The rateable values of all business properties are re-valued every 5 years. The last revaluation took effect from 1 April 2005.
Business Rates are calculated annually from 1 April by multiplying the rateable value of each property by a figure known as the "rate multiplier".
The multiplier is set annually by central government and determines the percentage (expressed as pence in the pound) of the rateable value of your property that you will pay in business rates. From the 1st April 2005, there will be two multiplier. In the current financial year (2008/2009) the small business multiplier, applicable to those businesses eligible for Small Business Rate Relief, is set at 45.8p. The standard multiplier, which includes the supplement to pay for Small Business Rate Relief, is set at 46.2p
For example,
If the Rateable Value (RV) of your property was £10,000, it would be multiplied by 45.8p (this is subject to qualifying for small business rate relief) to produce a total for the year of £4,580.00.
If you were not entitled to small business rate relief, you would then pay the supplement, the Small Business Rate Relief scheme will be funded by a supplement on the rate bill of those businesses not eligible for relief. In this example, the supplement is £40.00 (RV*0.04p) bringing the bill to a total of £4,620. 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.
Every time that the Valuation Office Agency revalue properties, some rateable values increase, some stay the same, and others may even decrease.
For the 2005 revaluation, the Government introduced a "transition scheme" to cushion the effect of the revaluation, which could result in a smaller increase or decrease in the Business Rates at your property. the scheme will be effective for the 2005 revaluation also, and qualifying ratepayers will be informed automatically.
If you need any further information about how bills are calculated or about how the transition scheme affects your property, please contact us at businessrates@fareham.gov.uk.
If you feel that the rateable value for your property is incorrect, see appealing against your rateable value.
For further information please contact the Business Rates office on Tel: 01329 824651, or e-mail businessrates@fareham.gov.uk.
|.
|.
