Understanding Business Rates
Business rates are local taxes, similar to council tax for residential properties, but they apply to non-domestic or business properties.
These rates are applicable to various types of business properties, including
- Holiday rental homes or guest houses
Importantly, the property doesn't necessarily have to be used for business purposes. You'll receive an annual business rates bill.
Roles and Responsibilities
The Valuation Office Agency determines the value of business premises based on property details, including rental information.
The rateable value is assessed by the Valuation Office Agency, an agency of HM Revenue and Customs. It represents the hypothetical annual rent a property would fetch on the open market as of April 1, 2021.
If you believe your rateable value is incorrect, you can check and update your property details on the GOV.UK website. If discrepancies exist, follow the instructions provided to:
- CHECK, review and confirm the facts about your property held by the VOA
- CHALLENGE, once the facts are established, explain why you believe your valuation is wrong
The Valuation Office Agency periodically revalues and updates rateable values, typically every five years. This process is known as Revaluation and doesn't increase overall tax revenue.
If you're using a property, you must pay non-domestic rates. If you're part of an inclusive rent and rates payment arrangement with your landlord, but the Council doesn't receive the payment, they will take recovery action against you.
Legal enforcement cannot be applied against the property owner or landlord in such cases, regardless of lease terms.
Payment Options Instalments
- Business rates for a full year can be paid in ten instalments from April to January.
- Alternatively, businesses can choose to pay in twelve monthly instalments.
- Bills issued mid-year consider a reduced amount,
- Bills issued towards the end of the financial year must be paid in a single payment.
- All instalments are due by the specified date.
If you miss a payment or it's late, you'll receive a reminder notice to catch up. If you do this within the given time frame, you can continue with the instalment plan, but you may not receive further reminders.
Failure to bring the account up-to-date means you'll lose the right to pay in instalments, and a summons will be issued for the entire year's debt.
If the amount isn't paid in full or a suitable payment arrangement isn't made, a liability order will be sought in the Magistrates Court. Unless the full amount is paid or a payment arrangement is agreed upon, a certified bailiff will be instructed to recover the owed amount, or insolvency proceedings will commence.
If you can't meet your business rates obligations, contact us immediately for assistance.
Each year central government issues explanatory notes for the benefit of ratepayers which billing authorities are required to publish on their website. Please see Word document
At revaluation, the Valuation Office Agency (VOA) updates the rateable value of business properties to reflect changes in the property market.
The most recent revaluation came into effect in England and Wales on 1 April 2023, based on rateable values from 1 April 2021.
The government has announced a package of rates relief for businesses as part of the Autumn Statement 2022.
- Visit to read the Autumn Statement 2022: Business Rates Factsheet - GOV.UK (www.gov.uk)
The 2017 non-domestic rating list is closing. Companies have up until midnight 31 March 2023 to submit a Check to ensure they don’t lose out on any reliefs or adjustments to their business rates bill. From 1 April 2023, customers will only be able to make a Check against the 2023 rating list.
As the 2017 rating list will be closed there are only limited circumstances in which further amendments may be made to it. These are:
- Following outstanding Checks submitted prior to 1 April 2023 and any subsequent challenges and appeals
- The VOA can alter the 2017 list up to 31 March 2024.This allows us to clear existing cases/reports and enables you to submit reports that have a retrospective element regarding the 2017 list. If we make any alterations to the 2017 list, we will advise the customer that they have the right to make a Check within 6 months of the date of our alteration.
- A customer has the right to challenge the 2017 list on the grounds of a tribunal or court decision, provided a Check has been made by 30 September 2023.
- After 31 March 2024 the 2017 list may only be altered because of a challenge or appeal.
Find out more
For more information on the Revaluation, rateable values, and business rates
Nottingham City Council
Business Rates Team
Telephone opening hours are 9am to 5pm Monday, Tuesday, Thursday and Friday and 9:30am to 5pm on Wednesday.
Tel: 01159154819Contact Us Online Is there anything wrong with this page?