What are business rates? – The London Borough Of Havering (2024)
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, authorities keep a proportion of the business rates paid locally.
The money, together with revenue from Council Tax payers, locally generated income and grants from central government, is used to pay for the services provided by local authorities in your area.
Further information about the business rates system is on the GOV.UKwebsite.
Businesses who occupy, or have entitlement to occupy, a commercial premises will be liable to pay business rates.
How are business rates calculated?
The local authority works out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier.
There are two multipliers: the standard nondomestic rating multiplier and the small business nondomestic rating multiplier. The Government sets the multipliers for each financial year.
Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are neither entitled to certain other mandatory relief(s) nor liable for unoccupied property rates) will have their bills calculated using the lower small business nondomestic rating multiplier, rather than the standard non-domestic rating multiplier.
Below are multipliers for the current and previous years.
Non-domestic rates or business rates are the way that those who occupy commercial (non-domestic) property contribute towards the cost of local services. They are administered and collected by local authorities.
Business rates in the UK are a tax on the right to occupy commercial property and typically equate to approximately 50% of annual rent. They represent one of the largest overheads for businesses and substantially impact on profitability.
This means that for every £1 of rateable value, a ratepayer is required to pay 54.6p or 49.9p in business rates (before any relief is taken into account). The 2023/24 multiplier was 51.2p, or 49.9p for small businesses.
The occupier of the premises is responsible for paying business rates. This will usually be the owner or the tenant. Sometimes the landlord of the property charges the occupier a rent that also includes an amount for the business rates.
If you're paying for more than one account, please email a remittance advice to chb.cashiers@cityoflondon.gov.uk and businessrates@cityoflondon.gov.uk (with a breakdown of the account number and payment amount) to make sure that there's no delay in allocating the payments to the accounts.
Introduction. In April 2010, the Mayor introduced a two pence (2p) business rates supplement on larger non-domestic properties in London. From 1 April 2023 until at least 31 March 2026 (including 2024-25), this will only apply to business and non-domestic premises in London with a rateable value of above £75,000.
How to Avoid Paying Unnecessary Costs with Business Rates Loopholes
Exempted Buildings & Empty Buildings. There are a number of different types of buildings and empty buildings that do not have to pay business rates. ...
For 2024/25, the Government has set two multipliers: the Small Business Non-Domestic Rate Multiplier of 0.499 and the National Non-Domestic Rate Multiplier of 0.546. The City's multipliers have been set at 0.515 (51.5p in the £) for small businesses and 0.564 (56.4p in the £) for other businesses.
The rateable value is the estimated annual rental value of a commercial property which is calculated by a valuation officer. It's used to determine how much a company pays for business rates in the UK. SumUp is a one-stop-shop for all of your business needs - from invoicing to accepting payments.
From 1 April 2019 the London authorities will retain 75% of their non-domestic rating income2. They will also receive section 31 grants in respect of Government changes to the business rates system which reduce the level of business rates income. Section 31 grant will amount to 75% of the value of the lost income.
In total, 32.7% of available funding goes to businesses in London, making it the perfect destination for entrepreneurs from around the world (3). London is a vibrant, egalitarian and multi-cultural city with business opportunities open for all.
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