Explanatory notes

Non-Domestic Rate Explanatory Notes - 2023-2024

Non-Domestic Rate (Business Rate) -Non-Domestic Rate, or business rate, collected by councils are the way that business ratepayers contribute towards the cost of local services. Under the business rate retention arrangements introduced from 1 April 2013, councils 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 councils. Further information about the business rate system, may be obtained at: https://www.gov.uk/introduction-to-business-rates and at https://www.spelthorne.gov.uk/business-services/business-rates

Business Rate Instalments -Payment of business rate bills is automatically set on a 10-monthly cycle. However, the Government has put in place regulations that allow ratepayers to request their council to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact the council as soon as possible.

National Non-Domestic Rating Multiplier -The council works out the business rate bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers: the national non-domestic multiplier and the small business non-domestic multiplier. The Government sets the multipliers for each financial year, except in the City of London where special arrangements apply.

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 non-domestic rating multiplier of 49.9 pence, rather than the national non-domestic rating multiplier of 51.2 pence.

Both multipliers for this financial year have been frozen to those set in 2022/23 rather than previous year's arrangements where the multiplier in adjusted to reflect the Consumer Price Index (CPI) inflation figure for the September prior to the billing year. The current multipliers are shown on the front of your bill.

Rateable Value -Apart from properties that are exempt from business rate, each non-domestic property has a rateable value which is set by the Valuation Office Agency (VOA), an agency of HMRC. The VOA compile and maintain a full list of all rateable values, available at www.gov.uk/voa. The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date - which for the current rating list, is 1 April 2021 (also known as the antecedent date).

The VOA may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong.

Further information about the grounds on which challenges may be made and the process for doing so can be found on the VOA website: www.gov.uk/guidance/how-to-check-your-rateable-value-is-correct  

Revaluations -All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1st April 2023. Revaluations ensure that business rate bills are up-to-date, more accurately reflect current rental values and relative changes in rents. Frequent revaluations ensure the system continues to be responsive to changing economic conditions.