Redditch Business Rates/ Non-Domestic Rates
Normally referred to as Business Rates, or more formally as The National Non-Domestic Rate,  Business Rates are annual contributions made by Redditch businesses and traders who occupy non-domestic or mixed-use property within the Redditch Borough Council area.

Business premises in Redditch are given a rateable value. The amount of business rates payable in Redditch (& throughout England) is calculated using the rateable value and a multiplier which is set by the government every five years. (The last review came into force on 1st April 2005!)

The business annual rates payable will be calculated using the rateable value and the multiplier set by the government. In England, the standard multiplier for the financial year 2009-10 is 48.5% . For example, a property with a rateable value of £20,000 is now charged £9,700 (2009-2010), whilst using the latest published percentage figure for 2010-2011 of 41.4% – it would result in an annual amount payable equal to £8,280, which excludes any discounts or reductions that may apply.

Rateable Value
The rateable value is usually determined by the annual open market rent (based on 1st April 2003 or 1st April 2008 rental figures) for the commercial or mixed-use premises. To assess the rateable value, various factors including the overall size of the premises and how they are or may be used will be taken into account. Some parts of the commercial premises may be valued at a different level. For instance, any space at the rear, or storage space underneath or above a shop premises, is determined as less valuable than the actual shop floor. Details of the rateable value and how it has been calculated should be included on any Redditch Commercial or Mixed-Use property valuation.

Business Rates Calculations
Commercial (or mixed use) premises that are subject to business rates have a rateable value which has been provided by the VOA (Valuation Office Agency). This is what Redditch Borough Council (& other local authorities) will use when calculating the annual business rate payable.

Business Rate Discounts & Reliefs
As a result of the proposed re-evaluation in April 2010, the current small business rate relief thresholds will also increase. For the financial year 2010-11, the small business multiplier, which is used to calculate rates for those businesses that apply for and meet qualifying criteria set out below, will be 40.7 pence (instead of the standard 41.4 pence).

Usually in England, you will be entitled to the relief if the only property you occupy has a rateable value of less than £18,000. If the rateable value of your property is less than £6,000, your business rates are calculated using the small business multiplier, and then reduced by 50 per cent. If the rateable value is between £6,000 and £11,999 – the reduction will decrease on a sliding scale of 1% for every £120. For instance, if the rateable value is £9,000, the rates are reduced by 25%.If the rateable value is between £12,000 and £17,999 – rates are also calculated using the small business multiplier.

You should contact Redditch Borough Council for more information and to claim any Business Rate rebate, discount or relief that may be available.

Redditch Borough Council
Town Hall
Walter Stranz Square
Redditch
Worcs
B98 8AH
 
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Tel: 01527 64252