Business Rates - General Information

Business Rates

What are Business Rates?

Business rates, known also as Non Domestic Rates, are a tax payable on all occupied and many unoccupied business premises.

There are currently over 6,400 business premises in the borough. Business Rates are payable to the Council who collect them on behalf of the Government. Rates are paid into a central pool and redistributed back to the Council to be used to pay for local services provided by the Council.

Calculation of Rate Charges

Rate charges are payable for the financial year comprising the period 1 April to 31 March.

Rate charges are calculated by multiplying the rateable value of a property by the appropriate rate multiplier set by the Government each year.

There are two multipliers; the standard non domestic rating multiplier (0.462) and the small business non domestic rating multiplier (0.458). These will change each year in line with inflation.

This means that the standard rate charges for a property with a rateable value of £10,000 for the year 2008/09 would be £10,000 x 0.462, which is £4,620.00. The charge for a business with the same rateable value, but subject to the small business multiplier, would be £10,000 x 0.458, which is £4,580.00. The multiplier which has been used in the calculation of rate charges is shown on the rate demand notice.

Rateable Values

The Valuation Office Agency (VOA), which is an agency of the Inland Revenue, is responsible for assessing the rateable value of all business properties except those which are classed as exempt from rates. The rateable value is based on the open market rent a property could expect to command on 1 April 2003.

The Valuation Office has drawn up and will maintain a Local Rating List for each Billing Authority containing the rateable value and description of all business properties in their area. Properties are valued for Non Domestic Rating purposes every 5 years and the new list, which came into effect on 1 April 2005, is available to see on the Valuation Office Agency (VOA) website.

Properties classed as exempt from rates include agricultural land and buildings, fish farms, churches and other places of worship, sewers, public parks, certain properties used for disabled people and moorings for boats.

The VOA's Valuation Officer whilst maintaining the Local Rating List may alter the value of a property if there is a material change of circumstances e.g. an extension to the premises or part of the property is demolished. The ratepayer can also appeal against the value shown in the list if they believe it is wrong. Further information on appeals can be found on the Valuation Office website or from the local valuation office. The local office for the Barnsley area is the Sheffield Valuation Office and the address is shown below.

Valuation Office
Cathedral Court
2nd Floor
1 Vicar Lane
Sheffield
S1 1HD

Tel No: 0114 2894600
Fax No: 0114 2894688/4689

 

Rating Appeals

You can appeal against the rateable value shown for your property if you believe the value shown in the Rating List is wrong. More information about rating appeals can be found on the Valuation Office Agency website or from your local valuation office. For more information see the associated link to Rating Appeals .

Transitional Arrangements

Property values normally change considerably between each revaluation and in order to help phase in the effects of these changes a transitional arrangements scheme applies. This limits the amount by which a bill can increase or decrease. Under the scheme limits will continue to apply to yearly increases and decreases until the full amount is due, therefore, until the charge is based on the rateable value times the appropriate multiplier.

For more information about transitional arrangements please contact the Council's Rates Office, or click the link to Transitional Arrangements

Unoccupied Property Rating

Business rates are not payable in the first three months that a property is empty. This is extended to six months in the case of certain industrial properties. After this period rates are normally payable at the standard occupied rate. A zero unoccupied rate will normally apply to properties owned by charities and Community Amateur Sports Clubs.

For more information about Unoccupied Property Rating, please contact the Council's Rates Office, or click the link to Unoccupied Property rating

Small Business Rate Relief

Small business relief will be available to the occupiers of qualifying single properties from 1 April 2005.

Eligible properties with a rateable value of less than £15,000 will receive a reduced charge.

Relief is available at  a amaximum of 50% for ratepayers occupying single properties with a rateable value up to £5,000, with relief reducing in percentage terms on a sliding scale until it is 0% at £10,000. Although the sliding scale does not apply to ratepayers occupying properties with rateable values of over £10,000, but below £15,000, they will still benefit by being charged using the small business multiplier which will result in a reduced charge.

All ratepayers entitled to relief will be charged using the lower small business rate relief multiplier.

The relief is only available to ratepayers with either one property, or one main property and other additional properties providing those additional properties have rateable values less that £2,200. The rateable value of the single property, or the aggregate rateable value in cases where additional properties form part of the business, must be under £15,000 outside London or £21,500 within London.

Ratepayers must apply for the relief each year and must be eligible on the 1 April of each year. If a ratepayer ceases to be eligible on a day during the year in question, the relief will cease on that day. An application for relief must be submitted in writing to the local authority within six months of the end of the financial year to which it relates.

For more information on small business relief see associated link to small business relief.

 

Mandatory and Discretionary Rate Relief

The ratepayer of a property who is a registered charity or registered community amateur sports club, and occupies the property wholly or mainly for charitable purposes and in line with the objects of the organisation, is eligible for mandatory relief of 80% of the full rate bill.

For more information on charitable relief see associated link to NDR Charitable Relief.

Discretionary relief up to 100% may also be allowed to organisations which are not established or conducted for profit whose main objects are charitable. Registered charities can also apply for additional top up discretionary relief.

For more information on discretionary relief see associated link to NDR Discretionary Relief for Non Profit Making Organisations.

Rural Rate Relief

Some types of property in designated rural areas which have a population below 3,000, such as:

• the only general store, post office or food shop with a rateable value below £7,000,

• the only public house or petrol station with a rateable value of less than £10,500

 may be eligible for relief. Properties have to be occupied and eligible ratepayers are entitled to mandatory relief at 50% of the full charge. The Council has discretion to grant additional discretionary relief to ratepayers receiving mandatory relief and on certain other occupied property in rural settlements where the value is below £14,000. For more information click on the associated link to Rural Rate Relief .

Hardship Relief

The Council has discretion to allow relief on the grounds of hardship up to 100% of the liability. However this discretion will only be used where you can show that hardship has been incurred which is not in the nature of a normal business risk and is not within your control.

For more information on Hardship Relief click on Business Rates Enquiries.

Rating Recovery Procedures

The Council will, where payment has not been made in accordance with payment instructions outlined on the bill, carry out recovery proceedings in accordance with legislative requirements laid down by the Government for collecting Non-Domestic Rates.

If a bill has been sent and payments have not been made in accordance with the bill the Council can issue a reminder requesting that you bring payment of your account up to date. If you receive a reminder you should pay the amount requested and then continue to make payments each month in accordance with the amounts stated on your bill. If you bring your payments up to date but then fail to maintain payments the Council will issue a further reminder notice.

Failure to make payments in accordance with a reminder notice will result in further steps being taken to obtain payment. Application will be made to the Magistrates' Court to issue a summons for non payment. The summons sets out a court hearing date at which the magistrates will be requested to issue a liability order unless payment has been made to the Council prior to the hearing date. Costs are payable for the issue of a summons and granting of a liability order and will be added to the Non-Domestic Rate account.

A liability order enables the Council to take other proceedings to recover rates through the initiation of bailiff action.

The Council may, if the bailiff is unable to levy adequate distress, also consider the issue of committal proceedings in the magistrates court or bankruptcy proceedings or winding up proceedings in the case of limited liability companies.

Arrangements can be made in certain circumstances where recovery proceedings have been taken and more information can be obtained by contacting the Rates Office. For further information see Rating Recoveries

Enquiries

For other information including:-

• Contact details

• Viewing your account online

• methods of payment

• application forms

Contact the Rates Office. Click on Business Rates -Enquiries

Please quote your account number when making an enquiry

How You can help

If your circumstances change in any way, you should inform the Council as soon as possible.

 

Frequently Asked Questions

Other Useful Websites

Last modified on 15/9/2008