National Non-Domestic Rates
Introduction
National Non-Domestic Rates (NNDR), also known as Business Rates is the Government's
tax on business properties. Business Rates collected by the Council
are paid into a central pool maintained by the Government. This
money is then redistributed to local authorities on the basis of
their population.
 NNDR
Explanatory Notes (33Kb, PDF file)
LB
Bexley and GLA information 2008/09 (1.64MB, PDF File)
Rateable Value
The rateable value of non-domestic properties are set by the Valuation Officer of the ![[External link]](../../images/navext.gif) Valuation Office Agency (VOA). The VOA reassesses all business properties every five years. The new lists came into force on the 1st April 2005. The next re-valuation is due to begin in 2008 for the financial year starting 1st April 2010. The rateable value of your property is not the amount you pay in business rates, but it is the basis for the calculation of your business rates bill. The rates due from any property are calculated by multiplying your rateable value by a factor set by central government each year, this is known as the multiplier. The amount you pay would normally increase in line with the movement in the annual Retail Price Index.
Your gross annual bill is calculated by multiplying the rateable value of the property by the rate poundage, which is set annually by the Government. The net annual bill may differ if the property is subject to transitional relief (see details under the Transitional Relief Scheme).
Frequently Asked Questions
Am I entitled to a reduction in my Business Rates?
These take the form of:
Small Business Rate Relief
From 1st April 2005, a new scheme will give small businesses a reduction of up to 50% in the amount of business rates. The scheme has been introduced to coincide with the new 2005 revaluation of business premises and applies to property where the 2005 Rateable Value is less than £21,500. The cost of the relief will be met by an increase in the rate multiplier for other businesses.
Your business may qualify if you:
- Occupy only one rated property in England, where the Rateable Value is less than £21,500; or
- Occupy one rated property in England, where the Rateable Value is less than £21,500 plus other property, provided that:
- a) All other property has a 2005 Rateable Value of less than £2,200 and
- b) The total of the main property plus all other assessments is less than £21,500.
Amount of Relief
The maximum amount of relief that can be granted under the scheme is 50%, with the actual amount of relief being dependant on the rateable value of the main rating assessment as follows:
- If the rateable value of the main property is £5,000 or less, then relief will be 50% of the amount otherwise payable;
- If the rateable value is between £5,000 and £10,000 then the relief will be on a sliding scale.
- If the rateable value is between £10,000 and £21,499 then although there will be no relief, the amount due will be calculated on the lower 'small business multiplier' rather than the standard multiplier used for other businesses. You will still need to submit an application to be eligible for the small business multiplier.
Application for Relief
Relief is not automatic and can only be granted if the ratepayer makes application in writing. An application form for Small Business Rate Relief is available on the National Non-Domestic Rates Forms page. If you have any further enquiries please contact the Business Rates department on 0208 315 2174. There is also a specific website www.mybusinessrates.gov.uk aimed at the small businesses ratepayer.
Transitional Relief
Details of any transitional relief are included on your bill. Transitional arrangements will phase in the effect of significant changes in liability, which arise from the 2005 revaluation of non-domestic property. Special rules deal with changes in rateable value and the merger or splitting of existing properties. Please note that the transitional relief scheme will cease from the 1st April 2009. Further information is available here. You may also contact the Business Rates department on 020 8315 2174 or by e-mail at BexleyNNDR@capita.co.uk.
Empty Property
Changes to the business rate liability of empty and partly occupied properties
to take effect from 1 April 2008
The Government has reformed empty property relief in order to provide a strong
incentive to bring empty property back into use. This will help to increase
the supply of premises to let, and so reduce business rents and improve the
competitiveness of the UK. It will also bring forward brownfield sites for
re-development and so reduce the need for new development on environmentally
valuable greenfield land. The reforms to empty property relief have consequential
impacts for the business rate liability of partly occupied properties that
have been apportioned.
So what will this mean for my business rate liability?
From 1 April 2008, most property that has been empty for more than three months - or, in the case of industrial property, for more than six months - will no longer receive relief from the business rate. After the initial three or six month rate-free period expires, empty property will be liable for 100% of the basic occupied business rate. Properties owned by charities and community amateur sports clubs are not liable to empty property rates if the properties' next use is likely to be wholly or mainly for charitable purposes or for the purposes of a sports club.
Further information is available on the Valuation Office
Agency website
http://www.voa.gov.uk/business_rates/empty_property_rates_changes.htm
How will my business rates liability be affected if my property is only partly
occupied?
If a property is only partly occupied, the Council has the discretion to request
that the Valuation Office Agency apportion the property's rateable value between
its occupied and unoccupied parts.
At present, broadly speaking, the empty property rate applies to the empty
part of an apportioned building and the occupied part. From 1 April 2008, as
a consequence of the reforms to empty property relief, the empty part will
receive a complete exemption from business rates for the first three months
it is empty (or, if it is an industrial property, for the first six months).
After the initial rate-free period expires, in most cases the apportionment
will cease to have effect and the occupied business rate will apply to the
whole property. This will ensure that occupiers can benefit from any occupied
business rate relief to which they are eligible - such as small business rate
relief - on the whole of the property, not just the occupied part. However,
if the property would qualify for the new zero business rate or for an exemption
from business rates when empty, the apportionment will continue to have effect
and the owner will not be liable for business rates on the empty part.
Can I appeal against the change in my business rates liability?
The changes in business rate liability arising from the reforms to empty property
relief are not in themselves grounds for appeal. However, if you disagree with
the rateable value that appears in the current rating list entry for your property,
under the existing arrangements you may challenge it by making a 'proposal'
against it to the Valuation Office Agency. Your rights of appeal are not affected
by the reforms to empty property relief and you can contact this authority
or the Valuation Office Agency for further information about the arrangements
for making proposals.
Charitable
Relief
Charities are entitled to relief from rates on any non-domestic
property, which is wholly or mainly used for charitable purposes.
Relief is given at 80% of the full rate bill or of the transitional
bill where the transitional arrangements apply.
Rate Relief for Registered
Community Amateur Sports Clubs (CASCs)
The Charity Commissioners
now also recognise most community amateur sports clubs as charitable.
Sports clubs will need to be registered with the Inland Revenue
and make its facilities available to all members of the public for
improving health and fitness. Guidance notes can be viewed on the
Charity Commission website www.charity-commission.gov.uk/publications/rr11.asp
or obtained from them by telephoning 0870 333 0123.
Exemptions
These are unoccupied property which are:
- small properties with a rateable value less than £2,200
- Kept empty due to action by a local authority or court
- estate of deceased person
- land not being used
- prohibited by law from being occupied
- subject to bankruptcy, companies being wound up
- listed buildings
National Non-Domestic Rates Forms
Several of our National Non-Domestic Rate forms are
now available to be downloaded, printed off and return to us by
post or in person, please see the National
Non-Domestic Rates form page for more information.
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How do I find out
what the rateable value of my business property is?
Contact the Valuation Officer at the following address:
The District Valuer
Valuation Office Agency
London South Group
Unicorn House
28 Emlfield Road
Bromley
Kent
BR1 1LR
Phone: 020 8315 2800
Fax 020 8315 2898/2899
Web Site: www.voa.gov.uk
Please note that the Valuation Office Agency web site has an online facility
for determining rateable values.
Valuation and Appeals Advice
You are free to make appeals to, or seek advice from the VOA yourself, you do not need to employ a rating adviser. However, should you wish to obtain professional advice, you can do so by contacting members of the Royal Institution of Chartered Surveyor (RICS) or the Institute of Revenues, Rating and Valuation (IRRV).
Both the RICS and the IRRV are regulated by rules of professional conduct designed to protect the public from misconduct.
You can find details of these organisations on their websites:
RICS - www.rics.org.uk
IRRV - www.irrv.org.uk
Before employing a rating adviser, and particularly before employing one who is not a member of one of these bodies, you should satisfy yourself that he or she has the necessary knowledge or expertise, as well as appropriate indemnity insurance.
You cannot withhold payment pending an appeal. You must pay according to the
current rateable value held in the Valuation List. More information concerning
Appeals can be found at www.valuation-tribunals.gov.uk.
What is the current multiplier?
For 2008/09 they are -
- Small Business Non-Domestic Multiplier - 45.8p (0.458)
- National Non-Domestic Multiplier - 46.2p (0.462)
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How do I pay?
By far the easiest and most cost effective way is by direct debit.
You can obtain a form by contacting Business Rates on 020
8315 2174 or completing the form enclosed with your Business
Rate bill, or you can download the Direct Debit Guarantee form on
the National Non-Domestic Rates
forms page. Once completed and signed please return the form
to Bexley Council, PO Box 368, Erith, DA8 1UB.
You can choose to pay monthly instalments or half yearly or in
one annual payment. You will be informed of any payment changes
at least 10 working days before they are collected. You stay in
complete control and benefit from guaranteed safeguards. To find out more about the benefits please visit the Direct Debit for Businesses website.
You can also pay:
- Pay your Business Rates Online - payment can be made online using Bexley Council's secure site. Please note that we only accept debit cards for Business Rate payments, not credit cards.
- Touch Tone Telephone Payment Service - Dial 020 8294 6789
and follow the instructions to make an automated payment using your touchtone
telephone. Payment can be made using your debit card. Please note, we do NOT
accept credit card payments.
- By post to Bexley Council, PO Box 368, Town
Hall, Erith, Kent, DA8 1UA. Please make cheques payable to 'Bexley
Council' and write your reference number on the reverse
of your cheque.
- At a NatWest Bank - payment can be made by
cash or cheque, free of charge at any Nat West bank within the
borough. There are branches in Bexleyheath, Northumberland Heath
and Sidcup.
- At a Bank or Building Society - a fee may be
payable for this service. Please check before undertaking a transaction.
- By Telephone Banking - You must quote your
Business Rate reference and the following Council bank details:
Sort code 51-70-14
DPSA no. 21101183
- Cash Office - Payment can be made by cash or
cheque at Erith Town
Hall between the hours of 8:45am - 5pm Monday to Friday.
- Post Office - Take the bill or payment book to the Post
Office ensuring that you have allowed three days for the payment
to reach the Council's bank. PO Counters Ltd will make a standard
payment charge for the transaction.
If you wish to change the method or frequency of your payments, please
contact us at:
The Business Rates Office
PO BOX 368
Erith
Kent
DA8 1UB
Phone: 020 8315 2174
Fax: 020 8315 2087
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What happens if I fail to pay?
Reminder Notice
If you do not pay the amount requested on the due date a reminder
notice will be sent. You must pay the amount on
the reminder with 7 days. If you do not pay the
amount on the reminder you will no longer have the right to pay
by instalments and the full balance of the year's Business Rates
will be payable. This balance must be paid within another 7 days
otherwise proceedings will be initiated.
Summons
If you do not pay the required amounts the Council
will apply to the local Magistrates Court for a summons with costs.
If you pay the full amount, including costs, before the Court date
the action will stop.
If the summons is not paid the Council will ask the
Court to grant a liability order. If the Court is satisfied that
the summons is payable and has not been paid it is required to make
a liability order. The Court cannot refuse to grant a liability
order even if you have applications outstanding for rating relief,
or the rating of your business property is in dispute with the Valuation
Office. The liability order will allow the Council to instruct a
bailiff to collect the debt which may include removing and selling
your possessions. You will also be liable to pay their fees.
The Court has no power to consider requests for payment
arrangements. If you wish to discuss payment of the summons you
should telephone the Council's Business Rate section on  020 8315 2174 on receipt of the summons. If an arrangement is agreed
the Council will still apply for a liability order but no further
action will be taken if the arrangement is kept to.
If no arrangement has been made the debt will be
passed to Bailiffs for collection. The Council may also make an application for an individual to be made Bankrupt or a company to be placed into Liquidation.
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