How are National Non-Domestic Rates Calculated?

All Non Domestic Rated properties have a rateable value which is set by the Valuation Office Agency (VOA), part of H.M. Revenue and Customs. The Rateable Value of your property is shown on the front of your bill.  The council uses the rateable value provided by the Valuation Office Agency (VOA) to work out how much you pay.  You can check your rateable value and compare it with others on the VOA website. 

The VOA re-assesses the Rateable Values of all Non Domestic properties every five years. This process is known as revaluation and the most recent one became effective on 1 April 2010.

To determine how much you must pay your rateable value is multiplied by a factor known as the “non domestic rating multiplier", this is fixed each year by the government.  For 2011/12, this has been set at 43.3p,  this is the basic amount you would have to pay for the financial year. This figure could be further adjusted as a result of any reliefs you may be entitled to.

Ratepayers entitled to Small Business Rate Relief have a lower multiplier. For 2011/12  this has been set at 42.6p.

Property values can change substantially between each five year revaluation.  The transitional arrangement scheme sets limits on the amount your bill can increase or decrease each year.  This will continue to apply to yearly increases/decreases until the full amount is due.  After these limits have been applied your bill will also increase in line with inflation.

The Council will automatically calculate any transitional arrangement against your NNDR bill, there is no need to apply for this.

The Transitional Arrangement scheme is explained more fully on the government’s Business Links webpage.

If you think either your rateable value or rating list entry is incorrect, you can make an appeal asking for it to be changed.

As well as the rate payer the following people may also make an appeal :

•  The owner of the property.
• A Landlord if he/she has an under lease.
• An agent or rating adviser authorised to act on the rate payers behalf.

In order to appeal you must complete an appeal proposal form.  This form can be obtained from the Valuation Office.

Further information on appeals including the grounds on which they can be made can be obtained from the Valuation Office and the Valuation Tribunal Service.

The Valuation Office will advise you of the outcome of their decision. In the meantime you must still pay the bill we have sent you. We cannot recalculate your bill until the Valuation Office have advised us in writing of the new rateable value.

If your appeal is successful the rateable value will be changed and your bill recalculated. However you may find that this makes no difference to the amount you pay.  This is because you have been paying the transitional arrangement charge and not the actual amount due.

You do not have to be represented in discussions about rateable value however you may wish to seek advise from a specialist rating adviser.  It is highly recommended that you only use members of the Royal Institution of Chartered Surveyors (RICS) or Institute of Revenues Rating & Valuation (IRRV) since they will be regulated by rules of professional conduct.

If you choose to use an advisor who is not a member of the previously mentioned bodies, you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract. A fact sheet regarding seeking professional advice is available from The Valution Office.

Please be aware that no one can guarantee a reduction in your rateable value.