Business rates are worked out based on your property's 'rateable value'. This is its open market rental value on 1 April 2015, based on an estimate by the Valuation Office Agency ( VOA ).
What services do business rates pay for?
Your rates are not a payment for specific services but are a contribution from businesses towards all of the services provided by the Council for the community, such as local transport, education and housing, all of which indirectly benefit businesses in the area.
Do business rates include rent?
Occupied properties The occupier of the premises is responsible for paying business rates. This will usually be the owner or the tenant. Sometimes the landlord of the property charges the occupier a rent that also includes an amount for the business rates.
Do all businesses pay business rates?
Who has to pay? In most circumstances occupiers of properties that are entered in the Valuation Office Agency's (VOA) business rates lists must pay. Business rates are charged on most commercial (non-domestic) properties such as shops, offices, pubs, warehouses, factories, holiday rental homes or guest houses.
Is my business liable for business rates?
Business Rates are a tax placed on properties which are used for commercial or business purposes, they apply to almost all commercial properties and are payable by the occupier (or landlord if the property is empty). They are not set by the landlord and do not change directly based on the rent you are paying.
Who are liable business rates?
Rates are payable on most occupied and some unoccupied (empty) properties. Business Rates legislation states that the person entitled to possession of a property is liable to pay business rates charges. The person entitled to possession will usually be the leaseholder or the owner of the property.
Do I have to pay business rates as a sole trader?
Do sole traders need to pay business rates? Again, it all depends on how much of your home you are using for your WFH activity. If you run your business from home, you won't usually have to pay business rates as well as Council Tax.
What are UK business rates?
Business rates are taxes designed to help fund services in your local authority. The government charges business rates on properties like offices, shops, pubs, and warehouses most non-domestic properties will attract business rates.
What is covered by business rates?
Business rates are charged on most commercial (non-domestic) properties such as shops, offices, pubs, warehouses, factories, holiday rental homes or guest houses. If the property is empty there is still a charge in most cases, and the owner/leaseholder/freeholder must pay this.