What are Business Rates
Find out who pays Business Rates, what properties count as non-domestic, and how Business Rates are calculated.
Business Rates, also known as Non-Domestic Rates, are a local property tax that is paid by the occupiers of all commercial (non-domestic) property (in the same way that council tax is a tax on domestic properties). It is collected by local authorities and is how non-domestic ratepayers contribute towards the cost of local services.
For more information regarding Business Rates, please visit the GOV.UK website.
Who pays Business Rates
The person or company who actually occupies a non-domestic property usually pays the rates. Often this will also be the owner or leaseholder of the property. If a property is empty, the owner or leaseholder will have to pay.
What properties count as non-domestic?
Any property that is not intended for use as somebody’s residence will be liable for Non-Domestic Rates.
Business rates are charged on most non-domestic properties, like:
- Shops
- Offices
- Pubs
- Warehouses
- Factories
- Self-contained holiday lets
- Beach huts
- Car parking spaces
For more details, visit GOV.UK.
How Business Rates are worked out
The local authority works out the annual Business Rates payable by multiplying the rateable value of the property given by the Valuation Office Agency, by the appropriate multiplier set by the Government each year.
For example, for an office with a Rateable Value of £24,000, the annual rates payable would be £11,976 for the current 2025/26 financial year.
Calculation: 24,000 x 0.499 x 365/365 = £11,976
Any reliefs/discounts would then be applied on top of this, and rates would be payable in monthly instalments.
Rateable Value
The Valuation Office Agency (VOA) maintains the Non-Domestic Rating List and sets Rateable Values for each non-domestic property.
A property's rateable value is an assessment of the annual rent the property would cost to rent if it were available to let on the open market at a fixed valuation date.
For more information, visit GOV.UK.
Dispute your Rateable Value
If you disagree with your rateable value, you must contact the Valuation Office Agency directly. They have introduced a 'Check, Challenge, Appeal' process to make it easier to appeal their decision.
Colchester City Council cannot initiate this process and will only be notified of the outcome once resolved.
What are multipliers?
From 1 April 2005, there have been two multipliers: the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The Government sets the multipliers for each financial year for the whole of England.
| Multiplier | 2024/25 | 2025/26 |
|---|---|---|
| Small Business Multiplier | 49.9p | 49.9p |
| Standard Multiplier | 54.6p | 55.5p |
Business Rates Explanatory Notes
Related Links
Page last reviewed: 29 February 2024