Business rates rateable values
Business rates are worked out based on your property’s ‘rateable value’. This is its open market rental value based on an estimate by the Valuation Office Agency (VOA), an executive agency of HM Revenue and Customs.
The VOA is responsible for calculating the rateable value of your property.
We use the rateable value to calculate your business rates bill. They are responsible for billing and collection of business rates including any relief from payment.
If you are unsure on how business rates is calculated, you can go to gov.uk and search 'business rates' or view the VOA's Introduction to Business Rates
Here's how to check your rateable value and information about the appeals process.
Check your business rate charges
Visit the VOA's website to check the details held about your property.
View and confirm the details held about your property
Appeal or challenge your business rate charges
Business rates are a national tax set by central government, therefore Councils cannot alter the amount of rates due.
However, if you believe your business rate charges are too high or there has been a change in material circumstances, then you can check and challenge your business rates valuation: step by step.
The government regulations require you to pay the rates based on the current rateable value until the appeal has been concluded.
If you are successful in your appeal and the rateable value is reduced, then any overpayment of rates made will be refunded to you. Provided payments have been made on time, interest is awarded at a rate specified by the government annually.
The valuation officer may alter the value of the property if circumstances change. The ratepayer (and certain others who have an interest in the property) can check and challenge their rateable value if they believe it is wrong.
Employing a ratings adviser
Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. Appeals against rateable values can be made free of charge. However, ratepayers who do wish to be represented should be aware that members of the royal institution of chartered surveyors (RICS) and the institute of revenues rating and valuation (IRRV) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct.
Before you employ a rating adviser, 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.
Exemptions
If your premises become vacant, you may be eligible for an exemption from rates charges for up to three or six months. Commercial premises are entitled to three months exemption, after which full rates are payable.
All vacant premises with a rateable value of less than £2,900 are exempt from paying empty property rates.
Premises which are classed as industrial, such as warehouses and factories are entitled to six months exemption, after which full rates are payable. Please visit our property reliefs page for more information.
Helpful Information from the Valuation Office Agency (VOA)
The VOA has a lot of helpful information on their website and in video explanations. They cover common subjects such as:
Introduction to business rates
Check and challenge your business rates valuation: step by step
Be wary of rogue business rates agents
Self-catering and holiday let accommodation
Videos explaining terminology:
Customer ‘how to’ videos:
Business Rates Valuation Account registration
How to find your rateable value
How to claim your property for business rates
Videos explaining VOA processes:
How we measure properties for business rates
How we use retail zoning for business rates
How we assess pubs for business rates
The Valuation Office Agency have a blog which is updated regularly with useful information on Business Rates valuations. This blog provides various updates and information. Topics include “How we value for business rates”, “Understanding your property’s valuation” and an introduction to “Understanding business rates”.
Contact the Valuation Office Agency (VOA)
You can contact the VOA for further help and advice for your rateable value. If you need to write to the VOA, please do so at:
Valuation Office Agency
Durham Customer Service Centre
Wycliffe House
Green Lane
Durham DH1 3UW