Business Calculator

Business Rates & Small Business Rate Relief Calculator 2025/26

Business rates (Non-Domestic Rates) are a tax on the occupation of commercial properties. Many small businesses qualify for 100% Small Business Rate Relief and pay nothing — but must apply to their council. Calculate your bill and reliefs now.

Your Property

Your Business Rates

Annual rates bill (after relief)
£0
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Gross rates before relief
£0
Small Business Rate Relief
£0
Retail/Hospitality/Leisure Relief
£0
Multiplier used
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SBRR percentage
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Estimated annual bill
£0
Monthly equivalent
£0

What Are Business Rates?

Business rates (officially Non-Domestic Rates) are a property tax levied on the occupation of commercial property in England and Wales. They apply to virtually all non-domestic properties — shops, offices, factories, warehouses, pubs, restaurants, gyms, and even some agricultural buildings. Business rates are set by central government but collected by local councils, which retain a proportion for local spending.

Your business rates bill is calculated using the rateable value (RV) of your property — an estimate of the annual rent the property could achieve on the open market — multiplied by the national non-domestic rating multiplier (the "poundage"). For 2025/26 in England outside London, the small business multiplier is 49.9 pence in the pound (£0.499) and the standard multiplier is 54.6 pence in the pound (£0.546). The lower multiplier applies to properties with a rateable value of £51,000 or less.

The 2023 Revaluation

Business rates are based on rateable values that are updated at periodic revaluations. The most recent revaluation took effect from April 2023, based on rental values at 1 April 2021. The 2023 revaluation significantly changed rateable values across England — in general, properties in prime city centre locations (particularly London) saw large increases, while out-of-town retail and some industrial properties saw reductions. If your RV changed substantially in April 2023, transitional relief may have capped the year-on-year increase in your bill.

The next revaluation is due in 2026 (based on April 2025 values), and thereafter revaluations are planned every three years. You can challenge your rateable value through the Check, Challenge, Appeal (CCA) process at gov.uk if you believe it is too high.

Small Business Rate Relief (SBRR) — 100% for Many Small Businesses

Small Business Rate Relief is one of the most significant and widely underused reliefs available to small businesses. For 2025/26:

  • Rateable value up to £12,000: 100% relief — you pay nothing
  • Rateable value £12,001–£14,999: Tapered relief — reducing from 100% to 0%
  • Rateable value £15,000–£51,000: No SBRR, but the small business multiplier (49.9p) still applies

SBRR is not applied automatically — you must apply to your local council. Many small businesses with rateable values below £12,000 are paying rates they are not legally required to pay, simply because they have not applied. The application is straightforward and can often be done online. Once granted, the relief continues until your rateable value or occupancy changes.

Retail, Hospitality and Leisure Relief 2025/26

The government has continued the Retail, Hospitality and Leisure (RHL) Relief scheme in 2025/26, providing a 40% discount on rates for qualifying properties — retail, hospitality, and leisure premises. This relief is capped at £110,000 per business (not per property), meaning businesses with multiple premises share the cap across their estate. Unlike SBRR, this relief is typically applied automatically by councils — check your rates bill to confirm it has been applied.

Empty Property Relief

Unoccupied properties are generally subject to full business rates after an initial exemption period. Industrial and storage properties receive 6 months of empty rates relief; other properties receive 3 months. After this period, full rates apply even with no occupier. Certain properties are permanently exempt from empty rates: properties with rateable values below £2,900, listed buildings, and properties held by charities where next use will be charity use. This is why some commercial landlords choose to demolish or redevelop premises rather than hold them empty.

Challenging Your Rateable Value

If you believe your rateable value is too high compared to similar properties in your area, you can challenge it through the Check, Challenge, Appeal (CCA) process at gov.uk/find-business-rates-valuation. Start by checking your property's assessment and looking for comparable properties that achieved lower valuations. If you disagree, submit a Challenge — the Valuation Office Agency (VOA) will review it. If still dissatisfied, appeal to the Valuation Tribunal (free of charge). Rateable value reductions are backdated to the start of the rating list.

Do I pay business rates if I work from home?+
Usually not — if you work from home but the property remains primarily a private dwelling, you pay council tax rather than business rates. However, if you have converted part of your home for business use (a dedicated office with a separate entrance, a workshop or studio, or business clients regularly visiting), the Valuation Office Agency may apportion the property and add a business rates element. Check with your local VOA office if you are unsure.
How do I apply for Small Business Rate Relief?+
Contact your local council's business rates team — most councils have an online application form. You will need your property details and your Unique Property Reference Number (UPRN). Once approved, the relief is applied to your rates bill automatically in future years, subject to any changes to your rateable value or occupancy. You must notify the council if you take on an additional property.
Can I get business rates relief if I share a property?+
Business rates attach to the occupation of a separately assessed property — not to individual tenants. If you share a property with other businesses (a co-working space, for example), you typically pay a proportional service charge to the landlord rather than rates directly. The rates liability rests with the rateable occupier — usually the landlord of a shared space who passes costs on through the service charge.