Business Rates
What are business rates?
The non-domestic rate is commonly known as business rates, and
is a
national tax on buildings or structures which are not used for
domestic accommodation.
The tax is assessed by a district valuer who compiles a 'list'
every five years which shows the address, description and rateable
value of every assessment within Borough of
Broxbourne.
Broxbourne Borough Council are responsible for billing and
collecting the rates within their boundaries, which is then paid
into a national non-domestic rating pool. The amount
collected by the pool is redistributed back to councils in the
form of a grant, based on the number of adults living in the
catchment area. This grant is used to help pay for the
services which the council provides.
Who pays business rates?
The occupier of a non-domestic assessment is responsible
for paying the business rate. If an assessment is empty
it could still be liable for 'unoccupied property
rates'. If this is the case, the person who holds the legal
title (eg lease or licence) for the property is liable.
What is a non-domestic assessment?
This simply means something on which rates can be charged.
For example, an advertising hoarding on the side of a building is
not a property but it still attracts a valuation for non-domestic
rates.
How are business rates calculated?
Business rates payable on each property are based on the
rateable value of that property. Rateable values are assessed
at five year intervals. The Valuation Officer of the
Valuation Office Agency sets the rateable value for each business
property.
This rateable value is multiplied by a multiplier (expressed as
a poundage) which is set by the government each year to determine
the amount of business rates you have to pay. For 2008/09 the
multiplier is £0.458p, but if your assessment does not qualify as a
small business there is an additional charge of £0.004p increasing
the multiplier to £0.462p.
The Council then calculate whether your assessment is subject
to transitional phasing, and any reliefs and exemptions that you
may be entitled to.