Many small businesses find business rates stressful. Dealing with business rates can be a surprise for new companies and some didn’t know they existed. Our short guide should help understand the basics of business rates, such as what they are and how to calculate them.
What Are Business Rates?
Business rates are property tax on non-domestic properties. Examples of some non-domestic properties include:
- Offices
- Factories
- Shops
- Pubs
- Warehouses
If you’re using a building or even part of a building for non-domestic purposes, it is likely you will have to pay business rates.
How To Calculate Business Rates
Find the rateable value of your business, then multiply it by the government’s up-to-date ‘multiplier’.
Businesses with a rateable value of £51,000 or above, you will use the standard multiplier. If the rateable value is below £51,000, use the small business multiplier.
Remember to note, some business reliefs are available and can be deducted from the amount you pay. More information about reliefs can be found on the government website.
For a complete guide to business rates, check out How are 2020/2021 Business Rates Calculated?