Article: Business Rates - Frequently Asked Questions Article Body Who has to pay the business rates? The occupier of a non-domestic property is normally responsible for the payment of business rates. Usually this is the owner-occupier or leaseholder. If a property is empty the person entitled to possession will have to pay rates. How is my rateable value calculated? The rateable value is calculated by the Valuation Officer and reflects the maximum rent which a tenant would be prepared to pay to rent a property under perfect market conditions. This is usually determined by analysing rental evidence from properties of a similar size and nature in the locality. How much will I have to pay? Your business rates bill is worked out by multiplying your rateable value by the multiplier or 'poundage' set for the whole of England by the government from 1 April each year. For example, the national multiplier for 2012/2013 has been set at 45.8p, so if your rateable value was £10,000 the local authority would multiply this by 0.458p and your bill for the year would be £4,580. This amount could be reduced or increased if subject to transition (please see 'what are transitional arrangements?' below). A lower charge would apply to businesses eligible to receive small business relief. What are transitional arrangements? Transitional arrangements help phase in the effects brought about by the five yearly revaluations, whether they are increases or decreases in rateable value. The transitional scheme introduced for the 2010 revaluation makes sure that the charge on each business rate bill does not change beyond specified limits because of the revaluation. These limits will continue to apply to yearly increases and decreases over the life of the scheme. On what grounds can I appeal against the rateable value of my property? You can appeal if you think any of the following applies: the rateable value shown in the rating list (either following a property valuation or when the property is first valued) is wrong there has been a material change of circumstances which has affected the value of the property. Material changes include: a physical change to the building a physical change to the local area a change in the use of the building a change in the use of a neighbouring property the Valuation Officer's change in value is wrong there is another sort of error in the list entry, for example the address is wrong a decision by a Valuation Tribunal, Lands Tribunal or higher court has affected your own valuation the property should be exempt or part of it should be considered as a domestic property the property should be considered for rating as more than one property or several properties should be considered as one property. Do I have to pay when I have appealed against my rateable value? Yes. Rates are payable based on the rateable value which appears in the current rating list and if you do not pay in accordance with your bill, recovery action will have to be taken, even though an appeal may be outstanding. If your appeal is successful and your rates are reduced, interest is usually payable on any overpayment. What services do I receive in return for paying my business rates? Rates are not payment for specific services but are a contribution from businesses towards all of the services provided by the council for the borough, such as local transport, education and housing, all of which indirectly benefit businesses in the area. Why have you sent me a bill when I already pay rent inclusive of rates to my landlord? Under rating law, we must issue a bill to the occupier of a property regardless of any agreement which may exist between the occupier and the landlord. You may wish to contact your landlord either to arrange that they will pay direct to the council on your behalf, or to renegotiate your rent agreement to remove the rate element. However, either way, if the account is not kept up to date, action will have to be taken against you, not your landlord, because you are the person who is liable. Will I still have rates to pay if I have moved out of my business property? Rates are chargeable on all empty unoccupied property, unless the property is classed as exempt. The legislation relating to unoccupied business premises provides that for the first three months of an unoccupied period (or the first six month for industrial properties) there will be no rates to pay but, if the property remains vacant after this period and you are still the owner or leaseholder, you will then be liable for rates. When do I have to pay my business rates? Your business rates are payable in monthly instalments (unless you have chosen to pay in a lump sum in April or half-yearly in April and September). Instalment payments are due on the 12th of the month, which means that payments should be on your business rate account by that date Payments made by direct debit, the easiest way to pay rates, will automatically be deducted from your bank or building society account and applied to your business rates account. For further information see Business Rates - Account Enquiries. You can also pay by using our e-payments facility on our website at pay online now or by debit card using our automated telephone payments 01226 779397. You can pay in person at most Barnsley Connects offices. If you pay at a bank or post office you should make your payment at least six working days before the due date to ensure that it will be on your account by that date. If you post your payment you should post it before the due date so that it will be processed and on your account in time. Why have you sent me a reminder/summons? The council is required by law to send a reminder if your instalments are not up-to-date. If you do not bring them up-to-date within seven days and then keep them up-to-date, you lose the right to pay by instalments. If you do not comply with the reminder you will be sent a summons and will have to pay court costs as well as your business rates. If you receive a summons and do not pay in full before the hearing the council will apply for a liability order. A liability order gives the council the right to use bailiffs to obtain payment and the council can also start bankruptcy/liquidation proceedings in certain circumstances, or to ask the magistrates court to impose a prison sentence. What if I cant pay the amount on the reminder/summons? If you are having difficulty paying, please contact the Rates Office and we will try to come to an arrangement for payment with you. You have sent me a summons and I want to make an arrangement to pay it off. Why do I still have to pay the costs? By law costs are payable when a liability order is obtained. Once a summons has been issued the only way to stop the council from asking for a liability order is to pay the full amount before the hearing. Even when an arrangement is made the council still has to obtain a liability order. The council will not take any of the actions which it allows us to take as long as you keep to the arrangement we have made with you.