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2021/22
Non-Domestic Business Rates
Rates Instalments
Non-Domestic Rates, or Payment of business rates
business rates, collected bills is automatically set
by local authorities are on a 10-monthly cycle.
the way that those who However, the Government
occupy non-domestic has put in place regulations
property contribute towards that allow ratepayers to
the cost of local services. require their local authority
Under the business rates to enable payments to be
retention arrangements made through 12 monthly
introduced from 1st April instalments. If you wish
2013, authorities keep a to take up this offer, you
proportion of the business should contact your local
rates paid locally. The authority as soon as
money, together with possible.
revenue from council tax
payers, locally generated
income and grants from
central government, is
used to pay for the services
provided by local authorities
in your area. Further
information about the
business rates system may
be obtained at:
www.gov.uk/introduction-
to-business-rates, at
the website of your local
authority which is normally
shown on your rates bill,
or by contacting your local
authority.
2
National Non-
Domestic Rating
Multiplier Rateable Value Revaluations
The local authority works Apart from properties that All non-domestic property
out the business rates bill are exempt from business rateable values are
for a property by multiplying rates, each non-domestic reassessed at revaluations.
the rateable value of the property has a rateable The most recent revaluation
property by the appropriate value which is set by the took effect from 1st April
non-domestic multiplier. Valuation Office Agency 2017. Revaluations ensure
There are two multipliers: (VOA), an agency of Her that business rates bills
the standard non- Majesty’s Revenue and are up-to-date and more
domestic rating multiplier Customs. They compile and accurately reflect current
and the small business maintain a full list of all rental values and relative
nondomestic rating rateable values, available at changes in rents. Frequent
multiplier. The Government www.gov.uk/voa. The revaluations ensure the
sets the multipliers for each rateable value of your system continues to be
financial year, except in property is shown on the responsive to changing
the City of London where front of your bill. This economic conditions.
special arrangements broadly represents the
apply. Ratepayers who yearly rent the property
occupy a property with a could have been let for
rateable value which does on the open market on a
not exceed £50,999 (and particular date specified in
who are neither entitled to legislation. For the current
certain other mandatory rating list, this date was set
relief[s] nor liable for as 1st April 2015. The VOA
unoccupied property may alter the valuation
rates) will have their bills if circumstances change.
calculated using the lower The ratepayer (and certain
small business non- others who have an interest
domestic rating multiplier, in the property) can also
rather than the standard check and challenge the
non-domestic rating valuation shown in the list
multiplier. Both multipliers if they believe it is wrong.
for this financial year are Further information about
based on the previous the grounds on which
year’s multiplier adjusted to challenges may be made
reflect the Consumer Price and the process for doing
Index (CPI) inflation figure so can be obtained by
for the September prior to contacting the VOA, or by
the billing year. The current consulting the VOA website:
multipliers are shown on www.gov.uk/guidance/
the front of your bill. how-to-check-your-
rateable-value-is-correct
Explanatory Notes for Business Rates 2021-22 3
Business Rate Small Business
Reliefs Rates Relief
Depending on individual If a ratepayer’s sole
circumstances, a ratepayer or main property has
may be eligible for a rate a rateable value which
relief (i.e. a reduction does not exceed a set
in their business rates threshold, the ratepayer
bill). There are a range of may receive a percentage
available reliefs. Further reduction in their rates
details are provided below bill for the property of up
and at www.gov.uk/ to a maximum of 100%.
introduction-to-business- The level of reduction will
rates, at the website of depend on the rateable
your local authority which value of the property. For
is normally shown on your example eligible properties
rates bill, or by contacting with a rateable value
your local authority. below a specified lower
threshold will receive 100%
Temporary relief. Eligible properties
between that threshold
Reliefs and a specified upper
Some of the permanent threshold will receive partial
reliefs are set out below tapered relief. The relevant
but temporary reliefs are thresholds for relief are set
often introduced by the by the Government by order
Government at Budgets. and can be obtained from
Further detail on current your local authority or at
temporary reliefs is www.gov.uk/introduction-
available at www.gov.uk/ to-business-rates
apply-for-business-rate- Generally, these percentage
relief. You should contact reductions (reliefs) are only
your local authority for available to ratepayers who
details on the latest occupy either—
availability of business (a) one property, or
rates reliefs and advice on
(b) o
ne main property
whether you may qualify.
and other additional
properties providing
those additional
properties each have
a rateable value which
does not exceed the
limit set by order.
The aggregate rateable
4
Charity and
Community
Amateur Sports Transitional Rate
Club Relief Relief
value of all the properties Charities and registered At a revaluation, some
mentioned in (b), must Community Amateur ratepayers will see reductions
also not exceed an amount Sports Clubs are entitled or no change in their bill
set by order. For those to 80% relief where the whereas some ratepayers
businesses that take on an property is occupied by the will see increases. Transitional
additional property which charity or the club and is relief schemes are introduced
would normally have meant wholly or mainly used for at each revaluation to help
the loss of small business the charitable purposes of those facing increases. Such
rate relief, they will be the charity (or of that and relief schemes are funded by
allowed to keep that relief other charities), or for the limiting the reduction in bills
for a fixed additional period. purposes of the club (or for those who have benefitted
Full details on the relevant of that and other clubs). from the revaluation.
limits in relation to second The local authority has Transitional relief is applied
properties and the current discretion to give further automatically to bills.
period for which a ratepayer relief on the remaining bill. Further information about
may continue to receive Full details can be obtained transitional arrangements
relief after taking on an from the local authority. and other reliefs may be
additional property can be obtained from the local
obtained from your local authority or the website
authority or at www.gov.uk/ www.gov.uk/introduction-
introduction-to-business- to-business-rates.
rates. Certain changes in
circumstances will need
Local Discounts
to be notified to the local and Hardship
authority by the ratepayer
who is in receipt of relief
Relief
(other changes will be picked Local authorities have a
up by the local authority). general power to grant
The changes which should discretionary local discounts
be notified are— and to give hardship relief
(a) the property falling vacant, in specific circumstances.
Full details can be obtained
(b) the ratepayer taking
from the local authority.
up occupation of an
additional property, or
(c) an increase in the
rateable value of a
property occupied by
the ratepayer in an area
other than the area of
the local authority which
granted the relief.
Explanatory Notes for Business Rates 2021-22 5
Unoccupied State Aid
Property Rate The award of discretionary
Relief relief[s] is considered likely
to amount to state aid.
Business rates are generally However, it will be state
payable in respect of aid compliant where it is
unoccupied non-domestic provided in accordance with
property. However, they are the De Minimis Regulation
generally not payable for EC 1407/2013. The De
the first three months that Minimis Regulation allows
a property is empty. This an undertaking to receive
is extended to six months up to EUR 200,000 ‘de
in the case of certain minimis’ aid over a rolling
industrial premises, whilst three-year period. If you are
certain other properties receiving, or have received,
such as vacant listed any ‘de minimis’ aid
buildings are not liable for granted during the current
business rates until they or two previous financial
are reoccupied. Full details years (from any source),
on exemptions can be you should inform the local
obtained from your local authority immediately with
authority or from gov.uk at details of the aid received.
https://www.gov.uk/apply-
for-business-rate-relief
If you would like this document in another format such as
large print, braille or audio tape or if your first language is not
English and you need help with it, please contact us on
01708 433997
6Crossrail
Information Business Rate
Supplied with Supplement
Rating Advisers Demand Notices (BRS)
Ratepayers do not have Information relating to What is Crossrail and
to be represented in the relevant and previous how will it benefit your
discussions about the financial years in regard to business?
rateable value of their the gross expenditure of the Crossrail is London’s newest
property or their rates bill. local authority is available railway. It will connect
However, ratepayers who at www.havering.gov.uk the outer suburbs and
do wish to be represented A hard copy is available on Heathrow airport to the
should be aware that request by writing to the West End, City and Canary
members of the Royal local authority or at Wharf. As such, Crossrail
Institution of Chartered 0208 430 3250. is vital to the future of
Surveyors (RICS - website London’s economy. The
www.rics.org) and the increased earnings it will
Institute of Revenues, bring – from new jobs
Rating and Valuation and quicker journeys –
(IRRV - website will benefit businesses
www.irrv.org.uk) are across London. It will
qualified and are regulated be named the Elizabeth
by rules of professional line in honour of Queen
conduct designed to protect Elizabeth II. Crossrail is the
the public from misconduct. single largest investment
Before you employ a rating in London’s infrastructure
adviser or company you for decades. It employed
should check that they have up to 14,000 people at the
the necessary knowledge peak of construction. Work
and expertise, as well as is continuing to complete
appropriate indemnity the project and stations
insurance. Take great along the route as soon
care and, if necessary, as possible. The section
seek further advice before through central London is
entering into any contract. expected to open in 2022.
To find out more, visit
www.crossrail.co.uk, call
the Crossrail 24 hr Helpdesk
on 0345 602 3813 or email
helpdesk@crossrail.co.uk.
Explanatory Notes for Business Rates 2021-22 7Developments in the is repaid. This is expected to Keeping you up to date
funding of Crossrail around the late 2030s but We will give ratepayers an
The previous Mayor no later than 2041, in line annual update over the
of London agreed a with the published Crossrail lifetime of the BRS.
funding settlement with BRS prospectus. The policies
Contact for more
Government in 2010 for the for the BRS in 2021-22
information
Crossrail scheme. The Mayor remain unchanged from
last year. 020 7983 4100
and the Secretary of State
for Transport agreed revised Does my business have to crossrail-brs@london.gov.uk
funding packages for pay the Crossrail BRS? www.london.gov.uk/
Crossrail in December 2018 Your rates bill makes clear crossrail-brs
and November 2020. if you are liable to pay Finance, GLA, City Hall
How are London’s the BRS. It applies only to London SE1 2AA.
businesses helping fund assessments (for example
Crossrail? business and other non-
In April 2012, the last Mayor domestic premises) with
introduced a Community a rateable value above
Infrastructure Levy (MCIL) £70,000 in London. This
on new developments in threshold means that at
London to finance Crossrail. least 85 per cent of the
The developer pays this capital’s non-domestic
levy. Business ratepayers properties will be exempt in
of larger properties have 2021-22.
contributed through a How much do I pay if my
special Crossrail Business property’s rateable value
Rate Supplement (BRS) is above £70,000?
since April 2010. The Crossrail BRS multiplier
Under the current funding for 2021-22 remains at 2p
package, the GLA is per pound of rateable value.
expected to contribute Reliefs for the Crossrail
around £6.9 billion towards BRS will apply on the same
Crossrail. This is financed basis and at the same
through the MCIL and percentage rate as for your
BRS. The BRS will need to national non-domestic
be levied until the GLA’s rates (NNDR) bill. However,
Crossrail related borrowing there is no transitional relief
scheme for the BRS.
www.havering.gov.uk
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