Calculate your business rates bill instantly. Covers multipliers, Small Business Rate Relief, retail discounts, and how to appeal. Updated for 2025/26.
What Are Business Rates?
Business rates are a tax on non-domestic properties in England — offices, shops, warehouses, factories, pubs, and most commercial premises. If you occupy a property for business purposes, the council charges you based on its estimated rental value, which the Valuation Office Agency (VOA) sets as the rateable value.
The system works a bit like council tax, but for businesses. You get a bill each April, and you can usually pay in monthly instalments across 10 or 12 months. The amount changes every year because the government adjusts the multiplier — and it changed again in April 2025.
How Business Rates Are Calculated
The formula is simple: Rateable Value x Multiplier = Annual Bill (before reliefs)
The multiplier is set by central government each April. For 2025/26:
• Standard multiplier: 55.5p (properties with a rateable value above £51,000)
• Small business multiplier: 49.9p (properties with a rateable value of £51,000 or below)
So if your property has a rateable value of £20,000, your gross bill before any relief is: £20,000 x 0.499 = £9,980 per year.
That is your starting point. Most small businesses then qualify for reliefs that cut that figure significantly — sometimes to zero.
Small Business Rate Relief — Full Breakdown
Small Business Rate Relief (SBRR) is the most commonly claimed relief, and many businesses miss it simply because they do not know they qualify.
• Rateable value below £12,000: 100% relief — you pay nothing
• Rateable value between £12,001 and £15,000: tapered relief on a sliding scale
• Rateable value between £15,001 and £51,000: you pay at the small business multiplier (49.9p instead of 55.5p)
To claim SBRR, you must occupy only one property (with some exceptions for second properties with a rateable value below £2,899). Contact your local council directly — it does not get applied automatically in all cases.
Other Business Rates Reliefs in 2025/26
Retail, Hospitality and Leisure Relief
For the 2025/26 financial year, eligible retail, hospitality, and leisure properties receive 40% off their business rates bill. This applies to shops, restaurants, cafes, pubs, cinemas, gyms, and similar premises. The relief is capped at £110,000 per business.
Charitable Relief
Registered charities get an 80% mandatory discount on business rates. Local councils can also grant an additional 20% discretionary relief, meaning some charities pay nothing at all.
Empty Property Relief
Business rates are still payable
on empty properties, though you get three months free (six months for
industrial premises). After that, the full rate kicks in — which surprises many
landlords. Some councils are stricter than others about enforcement.
How to Use Our Business Rates Calculator
Our free calculator at ToolsKit UK does the maths for you. You need two things: your property's rateable value (find it on the VOA website using your postcode) and your property type. Enter those and we calculate your gross annual bill, apply the correct multiplier, and show you estimated relief amounts.
The calculator also lets you compare what your bill would be under different relief scenarios — useful if you are planning a move or expanding to a second site.
How to Appeal Your Rateable Value
If you think your rateable value is too high — and it often is, especially after the 2023 revaluation — you can challenge it through the Check, Challenge, Appeal (CCA) process on the VOA website. Start with the Check stage, which is free. If the VOA does not change the value and you disagree, you can escalate to a formal Challenge.
You do not need a specialist to do this, though agents exist who work on a no-win, no-fee basis for larger bills. Small businesses often handle it themselves using the VOA portal.
Frequently Asked Questions
Do I pay business rates if I work from home?
Generally no — your home is covered by council tax, not business rates. However, if a significant part of your home is used exclusively for business (a room used solely as an office, for example), the VOA may split the assessment. This is relatively uncommon for typical home-based sole traders.
What if I cannot afford my business rates bill?
Contact your local council before the bill goes unpaid. Many councils offer hardship relief as a discretionary measure, and some allow extended payment plans. Ignoring the bill leads to a liability order and enforcement action quickly — councils pursue unpaid rates aggressively.
Can I get a rate-free period on a new business?
Not automatically. But if your property qualifies for SBRR, you may pay zero from day one. Some Enterprise Zones also offer rates holidays — check whether your area has one.
