Business Rates - Frequently Asked Questions
Q. What are Business Rates and why do I pay them?
A. Business Rates are a tax charged upon all business properties. The money raised is collected by local authorities on behalf of the Government and is redistributed to local authorities on the basis of their population. It is used to fund the full range of local services, including the Police and Fire services.
Q. What is a Rateable Value?
A. A Rateable Value represents the annual open market rental value of a property, at a specific date set by the Government. It is used in the calculation of a Business Rates bill.
Q. What is a transitional adjustment?
A. Where properties experience large changes in rateable value at the five yearly revaluation, a transitional adjustment will apply. It is designed to cushion the impact of a large increase or decrease in the Business Rates bill.
Q. My Rateable Value has been reduced but I have not received any reduction in my bill
A. If your bill receives a Transitional Adjustment, the amount you pay is based on a net amount, calculated by increasing the previous years Rate bills, not the true Gross Rates payable (Rateable Value X multiplier). A Rateable Value reduction for an account with Transitional Relief will only reduce the Gross Rates payable, not the net amount that you are actually paying.
Q. The description on my bill includes "premises". What does this mean?
A. This word is used by the Valuation Officer to describe any parts of the property not specifically identified (e.g., toilets, kitchens etc.). It does not include any domestic accommodation within the property.
Q. How can I reduce my bill?
A. There are various reductions and relief’s that you may be entitled to. If you qualify, we will reduce your bill.
Q. My property is empty. Do I still have to pay rates?
A. Yes. In most cases you must still pay rates on an empty property. No rates are payable for the first three months for most properties or six months for industrial properties, but 100% of the full charge will be payable after that. Some properties will be exempt from empty rate charges.
Q. Why don't you empty the bins at my property?
A. The law says that a local authority must collect domestic waste free of charge. However, waste from a business property may be collected upon request, but a separate charge must be made.
Q. Can I pay my Business Rates by Credit Card?
A. Unfortunately, we cannot accept credit card payments. See Ways to Pay your Bill’ for more details.
Q. Why have I been sent a reminder?
A. You are legally required to make payments on the date they are requested. See payment problems for more details.
Q. Why have you added costs to my account?
A. If you fail to make payments as required and we have to take Court action against you, the cost of this action is payable by you. See The Cost of Recovery for more details.
Q. What do I do if I don’t think the business rates bill it right?
A. If you think that we have calculated your bill incorrectly, contact us at Business Rates immediately on (0114) 273 4325 and we will check your account. If there is an error, we will correct it and issue you with a new bill. If the problem is more involved, we will write to you with a full explanation, or telephone you if this is more convenient.
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