How are business rates calculated?
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Your annual business bates bill is calculated and collected by the council.
The council multiples the rateable value of an individual property, which is set by the Valuation Office Agency with a 'multiplier' (the national non-domestic multiplier) set by the government.
It is set for the whole of England and is effective from 1 April each year. The multiplier represents the number of pence in each pound of the rateable value that will be payable in business rates before any relief or discounts are applied. The calculation gives the amount of rates payable for the year.
The government reviews the multiplier each year to reflect changes in inflation (using the retail price index). The chancellor recently announced that the government intends to cease use of the retail price index figure (RPI) and use the Consumer Price Index (CPI) instead.
Usually, revaluation takes place every five years, the last one was in April 2017, however the government has recently announced that they will now take place every 3 years, the next is therefore due in 2020.