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UK Business Rates Calculator 2025/26

Calculate your business rates liability with all available reliefs including Small Business Rate Relief, Retail Relief, and Charitable Relief. Updated with latest VOA multipliers.

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Business Rates Calculator

Estimate your annual rates bill

Calculation Breakdown
Find Your Rateable Value Search for your property's rateable value on the VOA website. Enter your postcode and property address to find your current RV.

2025/26 Multipliers

Type Rate
Standard (England) 54.6p
Small Business (England) 49.9p
Standard (Wales) 53.5p
Small Business (Wales) 53.5p

SBRR Thresholds

100% Relief RV ≤ £12,000
Tapered Relief £12,001-£15,000
Small Multiplier RV ≤ £51,000
Standard Multiplier RV > £51,000

Key Dates

Last Revaluation Apr 2023
Valuation Date 1 Apr 2021
Next Revaluation Apr 2026
RHL Relief Ends 31 Mar 2025

Understanding UK Business Rates

Business rates (Non-Domestic Rates) are a property tax paid by occupiers of non-residential properties in England and Wales. The amount you pay is based on your property's rateable value, set by the Valuation Office Agency (VOA), multiplied by a rate (the "multiplier") set annually by the government.

How Business Rates are Calculated

Your annual business rates bill is calculated using this simple formula:

Business Rates = Rateable Value × Multiplier For example: £20,000 RV × 0.499 = £9,980 per year

From this gross figure, you may be able to deduct various reliefs and exemptions. The 2025/26 multipliers are:

Multiplier Type England Wales Applies To
Standard Multiplier 54.6p 53.5p Properties with RV > £51,000
Small Business Multiplier 49.9p 53.5p Properties with RV ≤ £51,000

What is Rateable Value?

Rateable value (RV) is an estimate of the annual rent your property could achieve on the open market at a specific date. For the current rating list (2023-2026), this date is 1 April 2021. The VOA considers:

Available Business Rates Reliefs

The UK government offers several relief schemes to reduce business rates bills. Eligibility depends on your property type, rateable value, and business circumstances.

Small Business Rate Relief Up to 100%

For small businesses with property RV of £15,000 or less. Must be your only or main business property.

  • 100% relief: RV ≤ £12,000
  • Tapered relief: RV £12,001-£15,000
  • Small multiplier only: RV £15,001-£51,000

Retail, Hospitality & Leisure 75%

For 2025/26, eligible properties receive 75% relief (up to £110,000 per business).

  • Shops and retail outlets
  • Restaurants, cafes, pubs
  • Hotels and B&Bs
  • Cinemas, leisure venues

Charitable Relief 80-100%

Registered charities and Community Amateur Sports Clubs (CASCs) receive mandatory relief.

  • 80% mandatory relief
  • Up to 20% discretionary (local authority)
  • Property must be used for charitable purposes

Rural Rate Relief 50-100%

For businesses in designated rural settlements with population under 3,000.

  • Only village shop/post office/pub
  • Food shops: RV ≤ £8,500
  • General stores/pubs: RV ≤ £12,500

Empty Property Relief Temporary

Empty commercial properties are exempt from rates for a limited period.

  • 3 months for most properties
  • 6 months for industrial/warehouse
  • Listed buildings: 100% exempt
  • RV below £2,900: 100% exempt

Transitional Relief Automatic

Limits increases (and decreases) following revaluations. Applied automatically to bills.

  • Caps annual bill increases
  • Protects against sudden rises
  • Runs for duration of rating list

Small Business Rate Relief (SBRR) Explained

Small Business Rate Relief is the most common relief claimed by UK businesses. To qualify, your property must have a rateable value of £15,000 or less, and it must be your sole or main business premises.

SBRR Relief Percentages

Rateable Value Relief % Effective Rate Example (RV £10,000)
£0 - £12,000 100% £0 £0 per year
£12,001 100% £0 -
£13,000 67% ~£2,145 -
£14,000 33% ~£4,330 -
£15,000 0% ~£7,485 -
Important SBRR Conditions You can only claim SBRR if this is your only business property OR if all your additional properties have a combined RV below £2,900. Having additional properties above this threshold disqualifies you from SBRR entirely.

How to Apply for SBRR

  1. Contact your local council's business rates team
  2. Complete the Small Business Rate Relief application form
  3. Confirm you meet the eligibility criteria
  4. Relief is applied from the date of occupation or application

Business Rates Revaluation 2023

The most recent revaluation took effect on 1 April 2023. This updated all rateable values based on rental values as of 1 April 2021. The UK is moving to more frequent revaluations to better reflect market changes.

Revaluation Timeline

April 2017 Revaluation

Based on 2015 rental values. Created current rating list for 2017-2023.

April 2023 Revaluation

Based on April 2021 rental values. Current rating list for 2023-2026.

April 2026 Revaluation (Scheduled)

Will be based on April 2024 rental values. Part of new 3-year cycle.

Challenging Your Rateable Value

If you believe your rateable value is incorrect, you can challenge it through the Check, Challenge, Appeal process:

Step 1: Check

Verify your property details on the VOA website. Check the property description, floor areas, and any features that might affect the value. Notify the VOA of any errors.

Step 2: Challenge

If you still disagree after checking, submit a formal challenge. You must provide evidence why the RV is wrong, such as comparable rental evidence or property changes.

Step 3: Appeal

If your challenge is rejected and you still disagree, you can appeal to the independent Valuation Tribunal. There's a fee and strict time limits apply.

Paying Your Business Rates

Business rates are collected by your local council (billing authority). Most councils offer flexible payment options:

Payment Method Frequency Notes
Direct Debit 10 or 12 instalments Most convenient, automatic collection
Standing Order Monthly You control payment dates
Online Payment As required Credit/debit card, bank transfer
Telephone As required Card payment over phone
PayPoint/Post Office As required Cash or card at local outlets
Late Payment Consequences If you don't pay on time, your council will send reminders and may take enforcement action including court summons, liability orders, and potentially bailiffs. Contact your council immediately if you're struggling to pay.

Frequently Asked Questions

For 2025/26, the standard multiplier in England is 54.6p and the small business multiplier is 49.9p. In Wales, both multipliers are set at 53.5p. The multiplier is applied to your property's rateable value to calculate your business rates bill. Properties with RV over £51,000 use the standard multiplier; those at or below £51,000 use the small business multiplier.
Small Business Rate Relief provides 100% relief for properties with a rateable value of £12,000 or less, meaning you pay no business rates at all. For rateable values between £12,001 and £15,000, tapered relief applies on a sliding scale. To qualify, you must only use one property as your main business premises, or have additional properties with a combined RV below £2,900.
Rateable value is set by the Valuation Office Agency (VOA) based on the open market rental value of your property as of a specific date - for the current 2023 rating list, this is 1 April 2021. The VOA considers factors including property size, location, age, condition, parking facilities, and use type. You can check your rateable value on the GOV.UK website.
Yes, you can challenge your rateable value through the Check, Challenge, Appeal process. First, check your property details on the VOA website for errors in the description or measurements. If still incorrect, submit a formal challenge with evidence such as comparable rental data. If your challenge is rejected, you can appeal to the independent Valuation Tribunal, though fees apply.
For 2025/26, eligible retail, hospitality and leisure properties can receive 75% relief on their business rates, capped at £110,000 per business. This includes shops, restaurants, cafes, pubs, hotels, B&Bs, cinemas, and leisure venues. The relief is applied automatically by your local council in most cases. This scheme is due to end on 31 March 2025.
Registered charities and Community Amateur Sports Clubs (CASCs) receive mandatory 80% relief on business rates for properties used wholly or mainly for charitable purposes. Local authorities can also grant discretionary relief of up to an additional 20%, potentially giving 100% relief. Charity shops selling donated goods for charity purposes also qualify.
Empty commercial properties are exempt from business rates for 3 months from the date they become empty (6 months for industrial properties such as warehouses). After this exempt period, you pay full business rates. Some properties remain exempt: listed buildings, properties with RV below £2,900, properties where the owner is in administration or liquidation, and properties prevented from being occupied by law.
The most recent revaluation took effect on 1 April 2023, based on rental values as of 1 April 2021. The next revaluation is scheduled for 1 April 2026. The government has moved to a 3-year revaluation cycle (from the previous 5-year cycle) to ensure rateable values better reflect current market conditions.

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JM

James Mitchell

MRICS, Chartered Surveyor | Commercial Property Specialist

James is a Member of the Royal Institution of Chartered Surveyors with over 15 years' experience in commercial property valuation and business rates consultancy. He has advised hundreds of UK businesses on rating assessments, appeals, and relief applications, helping clients save millions in overpaid rates.

Last updated: January 2026 | Rates data verified against GOV.UK multipliers

Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: January 2026.

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Understanding Your Results

Our Business Rates Calculator provides:

  • Instant calculations - Results appear immediately
  • Accurate formulas - Based on official UK standards
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  • 2025/26 updated - Using current rates and regulations
Common Questions

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People Also Ask

Yes, our calculators use verified formulas and are regularly updated with current UK rates and regulations. Results are provided for guidance - always consult professionals for major financial decisions.

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We update all calculators with new rates as soon as they're announced - typically at the start of each tax year (April) or when significant changes occur.

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