Business rates are a local tax that are charged on most non-domestic properties such as shops, pubs, offices, factories, and warehouses. They must be paid if you are using a building or part of a building for non-domestic purposes.
Your local council will send you a business rates bill in February or March annually for the following tax year.
The Valuation Office Agency (VOA) sets the rateable value of business premises by using property details such as rental information.
Councils use the rateable value and the business rates multiplier (set by central government) to calculate your business rates bill.
In England, retailers with a rateable value £12,000 or less receive a 100 per cent discount on business rates for 2022/23. This is the Small Business Rate Relief.
Retailers with an RV of £12,001 and £15,000 receive tapered Small Business Rate Relief. The discount reduces the higher the RV. In 2022/23 the amount due will then be discounted by 50 per cent. This will be the amount payable. This additional discount is the Retail, Hospitality and Leisure Relief Scheme
For those with an RV of £15,001 or higher, there is no Small Business Rates Relief. They will benefit from the 50 per cent discount of the Retail, Hospitality and Leisure Relief Scheme, up to a maximum support of £110,000.
The Small Business Rate Relief scheme was in existence prior to Covid. The Retail, Hospitality and Leisure Relief Scheme is new for 2022/23 only.
If you have any questions about business rates, please contact Adrian Roper of the Fed’s political engagement team at adrian.roper@nfrn.org.uk.
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