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Non-domestic rates, or business rates, collected by councils are how those who occupy non-domestic property contribute towards the cost of local services.
Under the business rates retention arrangements introduced on 1 April 2013, authorities keep a proportion of the business rates paid locally. The money, together with revenue from council taxpayers, locally generated income and grants from central government, is used to pay for the services provided by Dorset Council.
Find out more about business rates by:
Payment of business rates bills is automatically set on a 10 monthly cycle. However, the government has put in place regulations that allow ratepayers to require us to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact us as soon as possible.
We work out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier.
There are 2 multipliers:
The government sets the multipliers for each financial year, except in the City of London, where special arrangements apply.
Ratepayers who occupy a property with a rateable value which does not exceed £50,999 will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the standard non-domestic rating multiplier. Both multipliers for a financial year are based on the previous year's multiplier adjusted to reflect the Consumer Price Index (CPI) inflation figure for the September prior to the billing year unless a lower multiplier is set by the government. In the Autumn statement, the government decided to freeze the small business non-domestic rating multiplier for the 2025/2026 financial year. The current multipliers are shown on the front of your bill.
Apart from properties that are held exempt from business rates’ rating by the Valuation Office Agency (VOA), each non-domestic property has a rateable value which is set by the VOA, an agency of His Majesty's Revenue and Customs. They compile and maintain a full list of all rateable values.
The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date specified in legislation. For the current rating list, this date was set as 1 April 2021.
The VOA may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong.
Find out about when and how you can challenge the valuation on the VOA website.
All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1 April 2023. Revaluations ensure that business rates bills are up to date and more accurately reflect current rental values and relative changes in rents. Frequent revaluations ensure the system continues to be responsive to changing economic conditions.
Depending on individual circumstances, a ratepayer may be eligible for a rate relief. This means a reduction in their business rates bill. There are a range of available reliefs.
Find out more about business rates relief by:
Some of the permanent reliefs are set out below but other temporary reliefs may be introduced by the government at a fiscal event. See further details about current temporary reliefs on GOV.UK.
If a ratepayer's sole or main property has a rateable value which does not exceed a set threshold, the ratepayer may receive a percentage reduction in their rates bill for the property of up to a maximum of 100%. The level of reduction will depend on the rateable value of the property. For example, eligible properties with a rateable value below a specified lower threshold will receive 100% relief while eligible properties above the lower threshold and below a specified upper threshold may receive partial relief. See the thresholds for relief which are set by the government by order. You can also contact us to find out about the thresholds for relief.
Generally, these percentage reductions (reliefs) are only available to ratepayers who occupy either:
(a) one property, or
(b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed the limit set by order.
The aggregate rateable value of all the properties mentioned in (b), must also not exceed an amount set by order.
For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, they will be allowed to keep that relief for a fixed additional period. GOV.UK has full details on the relevant limits in relation to second properties and the current period for which a ratepayer may continue to receive relief after taking on an additional property. You can also contact us for this information.
The ratepayer who is in receipt of relief will need to notify us of certain changes in circumstances (other changes will be picked up by the local authority). The changes which should be notified are:
Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the charity or the club and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs).
We have discretion to give further relief on the remaining bill. Contact us for full details.
At a revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases. Transitional relief schemes are introduced at each revaluation to help those facing increases. Transitional relief is applied automatically to bills. Find out more about transitional arrangements on GOV.UK or contact us.
We have a general power to grant discretionary local discounts and to give hardship relief in specific circumstances. Contact us for full details.
Business rates are generally payable in respect of unoccupied non-domestic property. However, they are generally not payable for the first 3 months that a property is empty. This is extended to 6 months in the case of certain industrial premises, whilst certain other properties such as vacant listed buildings are not liable for business rates until they are reoccupied. See full details about exemptions on GOV.UK or contact us.
The new UK subsidy control regime commenced from 4 January 2023. The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities giving subsidies must comply with the UK’s international subsidy control commitments. The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime. See further information about subsidy control on GOV.UK.
Ratepayers do not have to be represented in discussions about the rateable value of their property or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS) and the Institute of Revenues, Rating and Valuation (IRRV) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct.
Before you employ a rating adviser or company you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.
See the relevant and previous financial years gross expenditure of the local authority. A hard copy is available on request by writing to us or calling 01305 211990.
Certain types of properties in a rural settlement with a population below 3,000 may be entitled to full relief. The property must be the only general store, the only post office or a food shop and have a rateable value of less than £8,500, or the only public house or the only petrol station and have a rateable value of less than £12,500. The property must be occupied.
Please contact us for full details.
