News - 28/02/2019

Business rates bills continue to increase following introduction of new multiplier

On 1 April 2019 the business rates multiplier for non-domestic properties across England will rise in line with September’s Consumer Price Index (CPI) measure of inflation of 2.4%.

Find out more

On 1 April 2019 the business rates multiplier for non-domestic properties across England will rise in line with September’s Consumer Price Index (CPI) measure of inflation of 2.4%, sending some companies’ business rates bills soaring.

The standard multiplier, which applies to larger premises with a rateable value of £51,000 or more, will increase from 49.3p to 50.4p, while the small business rates multiplier, which applies to all premises with a rateable value of less than £51,000, will increase from 48.0p to 49.1p.

The multiplier is significant because it represents the number of pence in every pound of a property’s rateable value that will be payable in business rates. So, for example, a company with a rateable value of £51,000 will have an annual business rates bill of £25,704 before any relief is applied.

Local Billing Authorities are responsible for calculating individual business rates liabilities and, with so many variables to take into account, such as transitional arrangements and applied reliefs, errors can occur leading to significant overpayments.

With annual business rates demands for 2019/20 shortly due to be issued, national property consultancy, Lambert Smith Hampton (LSH) is advising all businesses to check their demands thoroughly as soon as they land and ensure that any errors rectified as soon as possible.

David Rainsford, Director - Rates Management & RatePal at LSH, commented:

“The calculation of business rates liabilities is an incredibly complex process and is seen by many as somewhat of a dark art. Moreover, knowing whether the amounts levied are true and correct is virtually impossible to the untrained eye.

“To date, our demand validation and associated services has resulted in over £18m of overpaid business rates liabilities being recovered so, not only do mistakes occur, they can also be quite costly.

"It is therefore paramount that businesses, particularly those occupying multiple property portfolios, seek professional advice if they are unsure about the validity of their new rates demand.”

For more information about how we can assist you, download our Rates Management & Audit information sheet or visit our Rates Management web page.

Get in touch

REGISTER FOR UPDATES

Get the latest insight, event invites and commercial properties by email