The short answer
- Your bill is the rateable value of the property times a multiplier, less any reliefs.
- If it is your only business property and its rateable value is £12,000 or less, small business rate relief usually takes the bill to zero.
- Between £12,000 and £15,000, the relief tapers away.
| Rateable value | Standard use | Retail, hospitality or leisure |
|---|---|---|
| £12,000 | £0 | £0 |
| £13,500 | £2,916 | £2,579 |
| £15,000 | £6,480 | £5,730 |
| £30,000 | £12,960 | £11,460 |
| £50,000 | £21,600 | £19,100 |
| £100,000 | £48,000 | £43,000 |
How business rates are worked out
The Valuation Office Agency (VOA) gives each property a rateable value: roughly the yearly rent it could have been let for on a set valuation date. Your council then multiplies it by the multiplier for the year and takes off any reliefs.
- Rateable value£30,000
- × small business multiplier43.2p
- Rates before relief£12,960
The rates year runs from 1 April to 31 March. Councils usually collect the bill in 10 monthly instalments, from April to January, and you can ask to spread it over 12.
The 2026/27 multipliers
From 1 April 2026 there are five multipliers in England, replacing the old 40% retail, hospitality and leisure relief with permanently lower rates for those properties:
| Rateable value | Retail, hospitality and leisure | Everything else |
|---|---|---|
| Under £51,000 | 38.2p | 43.2p |
| £51,000 to £499,999 | 43.0p | 48.0p |
| £500,000 or more | 50.8p | 50.8p |
The lower multipliers apply to properties wholly or mainly used for qualifying retail, hospitality or leisure, such as shops, cafés, restaurants, pubs, hotels, gyms and cinemas. It depends on how the property is actually used, not just on how the VOA describes it.
The small business multiplier applies to every property with a rateable value under £51,000, whether or not you get small business rate relief.
Small business rate relief
You get small business rate relief if you only use one property in England and its rateable value is under £15,000.
The chart shows the relief at each step of £1,000; in reality it falls smoothly. Between £12,000 and £15,000 the relief is (£15,000 − rateable value) ÷ £3,000, so it drops about 3.3 percentage points for every £100.
- £13,500 × 38.2p£5,157
- Relief: (£15,000 − £13,500) ÷ £3,00050%
- Small business rate relief−£2,579
Check that it has been applied
Many councils apply the relief automatically, but not all. If your bill does not show it and you think you qualify, contact your council. Relief can usually be backdated.
Having more than one property
Normally you lose small business rate relief if you use more than one property. You can keep it on your main property if:
- each of your other properties has a rateable value under £2,900; and
- the total rateable value of all your properties is under £20,000, or £28,000 in London.
If you take on a second property that does not meet these conditions, you keep the relief on your first property for 12 months, giving you time to adjust.
The 2026 revaluation
Rateable values are updated in revaluations. New values took effect on 1 April 2026, based on rents at 1 April 2024. Some properties went up, some down. Three schemes soften big increases:
- Transitional reliefCaps how fast bills rise
For smaller properties (rateable value up to £20,000), the increase is limited to 5% in 2026/27, with higher caps in later years.
- Supporting Small BusinessProtects those losing relief
If the revaluation takes away some or all of your small business or rural rate relief, the rise is capped at £800 or the transitional cap, whichever is higher.
- AutomaticCouncils apply them
You do not usually need to apply. Check your bill and contact your council if something looks wrong.
The calculator shows your bill before these schemes. If you enter last year’s bill and the increase is over £800, it flags that a cap may apply.
Other reliefs
- Who
- Charities and community amateur sports clubs
- Relief
- 80%, plus up to 20% more at the council's choice
- Who
- The only shop, post office or pub in a small rural settlement
- Relief
- Up to 100% within value limits
Councils can also give discretionary relief for local reasons, hardship relief and relief for some new and improved properties. Properties used for some purposes, such as places of worship and agricultural land, are exempt altogether.
- Rates before relief: £30,000 × 43.2p£12,960
- Charitable relief at 80%−£10,368
Moving in, moving out and empty property
Rates are charged daily. If you take on or give up a property part-way through the year, you pay for the days you are responsible for it. Six months in a £30,000 office costs about £6,462.
Empty property is usually exempt for the first three months after it becomes empty, or six months for industrial property such as warehouses. After that the owner normally pays full rates. Some empty properties, such as listed buildings and those with a rateable value under £2,900, stay exempt.
Working from home
Most people who work from home do not pay business rates. You may need to if, for example, part of your home has been converted for business use, you employ people there, you sell to customers who visit, or you use a room only for business in a way that makes it non-domestic.
If you are unsure, the VOA can tell you whether part of your home needs a rateable value. Using a room for both business and family life usually keeps it domestic.
Checking and challenging your valuation
You can find your property’s rateable value, and how it was worked out, on GOV.UK. If you think it is wrong, the VOA’s check, challenge, appeal process lets you:
- check the facts the VOA holds, such as floor area and use;
- challenge the valuation with evidence, such as rents for similar properties;
- appeal to the Valuation Tribunal if you disagree with the decision.
It is free to do yourself. Be wary of agents who cold-call promising savings for an upfront fee. A challenge matters most near the relief thresholds: bringing a rateable value from £13,500 to £12,000 takes a £2,916 bill to nothing.
Scotland, Wales and Northern Ireland
Business rates are devolved. Scotland has its own poundage and the Small Business Bonus Scheme; Wales and Northern Ireland have their own multipliers and small business relief. The calculator and this guide cover England only.
Worked examples for common businesses
| Business | Rateable value | Multiplier | Relief | Bill |
|---|---|---|---|---|
| Small café, only property | £9,000 | 38.2p | 100% | £0 |
| Hair salon, only property | £14,000 | 38.2p | 33% | £3,565 |
| Workshop, only property | £18,000 | 43.2p | None | £7,776 |
| Office, one of several | £30,000 | 43.2p | None | £12,960 |
| Pub | £60,000 | 43.0p | None | £25,800 |
The pub shows the value of the new retail, hospitality and leisure multipliers: on the standard 48p multiplier the same pub would pay £28,800, £3,000 more.
How rateable value is set
For most shops, offices and industrial units, the VOA looks at the rent similar properties were let for around the valuation date, adjusted for size, location and condition. Floor area is usually the biggest factor, so check the measurements on your valuation.
Some properties are valued differently. Pubs, hotels and some leisure businesses are valued on their likely trade, and specialist properties on the cost of building them. Your valuation on GOV.UK says which method was used.
Before you sign a lease
- Look up the property’s rateable value on GOV.UK before agreeing the rent.
- Check whether it will be your only business property, so you know if small business rate relief applies.
- Ask whether the rent includes rates, which is common in serviced offices but rare in shops.
- Budget for the bill from the day the lease starts, even if you are still fitting out.
- If you are close to £12,000 or £15,000, a property a little smaller can be much cheaper to occupy.
Paying your bill
Your council sends a bill each spring. Most people pay by direct debit in 10 or 12 instalments. If you cannot pay, speak to the council early: they can sometimes spread the bill or consider hardship relief. Unpaid rates can be recovered through the courts, which adds costs, so it is worth acting before a reminder.
Business rates are an allowable expense for Income Tax and Corporation Tax, so part of the cost comes back through a lower tax bill.
When your circumstances change
Tell your council straight away if any of these happen, because each can change your bill:
- you move in to, or out of, a property;
- you take on a second property, which can end small business rate relief after 12 months;
- the way the property is used changes, for example from an office to a shop, which can affect the multiplier;
- you become a charity or start trading as a different business;
- the property is altered, extended, split or merged with another unit.
New duties are also being phased in. From April 2026 the VOA is piloting rules that require ratepayers to report changes to their property, occupation, lease or rent within 60 days, and to confirm their details once a year. They become compulsory for everyone in England from April 2029.
If your bill is wrong because the council was not told about a change, it can usually be corrected backwards, which may mean a large catch-up bill. Equally, if you have been overcharged, you can ask for a refund.