Be prepared for business rate changes as rateable value update takes effect

The Valuation Office Agency (VOA) has updated the rateable values of all businesses, and other non-domestic, properties in England and Wales from 1 April 2023.

The Government levies the charge on offices, shops, pubs, and warehouses. In fact, most non-domestic properties will attract business rates. They may also be charged where only part of a building is used for non-domestic purposes.

A Government business rates support package has been put in place worth around £13.6 billion over the next five years.

It includes measures to freeze the business rates multipliers at 49.9p and 51.2p in 2023-24, which, it is claimed, will see bills six per cent lower than they would have been without the freeze.

Changes to business rates in 2023:

The updated values reflect the property market as of 1 April 2021 and, while some sectors benefit, others have been hit hard by the Business Rates Revaluation 2023.

How are business rates calculated?

They will be based on the property’s ‘rateable value’, the estimated value on the open market.

The rateable value for your property is not what you pay in business rates or rent. Your council uses the rateable value to calculate your business rates bill.

What is the Small Business Rates Relief?

This applies if the property has a rateable value of less than £15,000, and generally if the business only uses one property:

If you’re a small business but you don’t qualify for small business rate relief, your bill will still be worked out using the lower small business multiplier (for properties with a rateable value below £15,000).

Need help with understanding business rates? Contact us today.

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