How is the bill calculated?

The basic calculation of the bill is worked out as follows.

Rateable Value x Multiplier = Rates due for the year

The rateable value of the property is a value based on the annual rent which would be paid on the property if it were rented. The Valuation Office, an agency if the Inland Revenue, calculate this rateable value and keep a valuation list of all the rating assessments.

The list can be inspected at the Council offices or at the Valuation Office in Derby or by visiting the Valuation Office Agency Website. Their address is:

Valuation Office Agency (Derby)

Telephone: 01332 710800

Email : eastmidlandsgroup.vo@voa.gsi.gov.uk

You can also look up rateable values for non domestic properties in Derby on our website.

The second part of the calculation is the multiplier. This figure is set at a national level by the Government and it cannot increase by more than the level of inflation each year. For 2008/2009 it is 0.462 (46.2p) which compares with 0.444 in 2007/08. The small business multiplier is 0.458 (45.8p). A reduced or increased bill can result if transitional relief or transitional premium is applicable.

Under the current system of Business Rates Derby City Council cannot set it’s own charges and does not keep the money raised.

Transitional Relief/Premium

The market for rented property changed a great deal between the 2000 and 2005 revaluations. The 2005 revaluation resulted in big increases in the rateable value of some properties and big decreases for others. The government decided to phase in the changes gradually to give businesses time to adjust.

Individual rate bills are therefore not allowed to go up or down in any year by more than a fixed percentage after allowing for inflation. The percentage changes are set by the government and apply each year until the full rates liability is reached. The arrangements can carry on for up to five years after the last revaluation.

Small Business Rate Relief

The scheme is funded through a supplement on the rate bills of those businesses not eligible for the relief. The supplement is built into the standard non-domestic rating multiplier.

This is available at 50% for ratepayers occupying single properties with a rateable value up to £5,000, with relief declining in percentage terms on a sliding scale until it is 0% at £10,000.

The relief is only available to ratepayers with either-

(a) one property, or

(b) one main property and other additional properties providing those additional properties have rateable values less than £2,200.

The rateable value of the property mentioned in (a), or the aggregate rateable value of all properties mentioned in (b), must be under £15,000. 
However, ratepayers of eligible business properties with rateable values between £10,000 and £15,000 do not have to contribute towards the relief and will have their bills calculated using the lower small business non-domestic rating multiplier.

Ratepayers must apply for the relief this year but once made, the application will stand until March 2010 unless the ratepayers circumstances or the Rateable Value of any of their properties changes.

For more information use this link: Business Rates Reductions