Shropshire Council

Business rates FAQs

Use the information on this page to find out more about business rates.

What will happen if I don't pay my business rates?

Business rates are usually paid by ten monthly instalments from April to the following January. However, the government has put in place regulations that allow businesses to make payments over 12 monthly instalments. If you wish to take up this offer, you can make a written request to us.

Unless you pay via direct debit, instalments are due on the first of each month.

Should you fail to pay your instalments by the due date given on your bill, recovery action will commence. Recovery procedures are in accordance with the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989 and take the following form:

  • A reminder notice will be issued approximately 14 days after your instalment becomes due
  • Failure to comply with the reminder notice will mean the right to pay by instalments will be lost, and a final notice for balance remaining outstanding for the year will be issued
  • Failure to comply with the final notice will lead to the issue of a summons by the magistrate’s court

We apply to the court for a liability order which allows us to:

  • Use external enforcement agents
  • Instigate insolvency proceedings using the liability order as a proof of debt

If you have any enquiries please contact us.

What are business rates?

National non-domestic rates (NNDR) or business rates are a form of taxation levied in respect of non-domestic premises.

These rates are collected by local councils, and prior to April 2013 were paid to central government, which then redistributed them to each council in accordance with specific pre-determined factors.

Since April 2013, business rates retention arrangements have meant that local councils keep a proportion of the rates paid locally. This money, together with revenue from council tax payers, the revenue support grant provided by the government, and some other sums, is used to pay for the services provided by the local council and other local authorities in your area.

Each year central government provides details for a summary of business rates information which it entitles Explanatory Notes, a copy of these for 2017/2018 are available for you to download.

How are business rates calculated?

Business rates are calculated by multiplying the rateable value (RV) of the property by the appropriate annual multiplier.

Rateable values 

These are assessed by valuation officers of the Valuation Office Agency (VOA), an agency of Her Majesty’s Revenues & Customs, and can vary according to the type, size and location of the property, but will broadly represent the yearly rental value the property could have been let for on the open market on a particular date. The VOA creates and maintains a full list of all rateable values, which is available on their website at VOA Business Rates: Find my property.

These rates are usually recalculated every five years.

If you consider that the rateable value of your property is incorrect you'd should contact the VOA, not us. In the meantime, payment should be made in accordance with your latest bill in order to prevent any recovery action being instigated.

Multiplier

These are set nationally by the government, but generally change each year in line with the retail prices index as it stands at the end of the September of the previous year, and to take account of the cost of small business rate relief. There are two multipliers for each year – the standard rating multiplier and the small business rating multiplier. Detailed below are the multipliers for recent financial years.

Year

Standard multiplier

Small business multiplier

2006-2007

0.433

0.426

2007-2008

0.444

0.441

2008-2009

0.462

0.458

2009-2010

0.485

0.481

2010-2011

0.414

0.407

2011-2012

0.433

0.426

2012-2013

0.458

0.450

2013-2014

0.471

0.462

2014-2015

0.482

0.471

2015-2016

0.493

0.480

2016-2017

0.497

0.484

2017-2018

0.479

0.466

 

What's business rate revaluation?

Usually, every five years, the Valuation Office Agency (VOA) reassesses the rateable values for all non-domestic (business) properties.

The purpose of the revaluation is not to change the amount of money collected in rates nationally, but to make sure that individual rateable values reflect the changes that have taken place in the property market since the last revaluation.

The most recent revaluation took effect on 1 April 2010, and rateable values broadly reflect the yearly open market rental value of each property as at 1 April 2008.

The VOA produces a list of the new rateable values, and issue a summary valuation to businesses explaining how they have worked out the rateable value. In most cases, these are available on the VOA Business Rates: Find my property.

The VOA also provides councils with an updated version of the full rating list for their area of responsibility every three months. The latest version for us is available in the open data section of the website.

Following delays announced by central government, the next revaluation is due to come into effect on 1 April 2017, and all non-domestic properties will have their rateable values assessed based upon the rental market as at 1 April 2015.

The draft 2017 rating list is scheduled to be available to the general public at the beginning of October 2016. At that time businesses will be able to view the proposed rateable value of their property.

The VOA is encouraging businesses to check their draft rateable value electronically by accessing their website.