Before the start of each financial year the Council will send a business rates bill to everyone who the Council has on record as being responsible for paying a non-domestic rate. This bill will show the net amount due after any reductions have been applied. Details of possible reductions can be found on the reducing your rates bill page.
You can pay your bill annually, six monthly or by monthly instalments, over either 10 or 12 months and you will be given at least 14 days notice before the first payment is due.
If you choose to pay by Direct Debit you have a choice of three instalment dates, 1st, 15th or 25th of the month and the option to pay in 10 or 12 monthly instalments.
If you have not expressed a preference the instalments, displayed on your bill, will be due on the first of each month payable over 10 months between April and the following January.
If you disagree with the bill, please contact us to discuss, giving your reasons. If you disagree because of a change in liability the Council will issue an amended bill , usually within 14 days of receiving the new information. If you disagree because of a valuation matter you must follow the appeals procedure to take your complaint to the Valuation Tribunal. While you are following this procedure, you will still be expected to pay the instalments when they are due.
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 yearly 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. The multipliers are adjusted in line with the retail price index (RPI) as at the preceding September each year. So for 2017-18 this would be the RPI in September 2016.
For 2017-18 the multiplier is £0.466, but if your assessment does not qualify as a small business there is an additional charge of £0.013 increasing the multiplier to £0.479. (In 2016-17 the multiplier was £0.484, with an additional charge of £0.013 increasing the multiplier to £0.497).
The Council then calculate your reliefs and exemptions.
- The non-domestic rates, or business rates, collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services. Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenues. The money, together with revenue from council tax payers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by Borough of Broxbourne Council. Further information about the business rates system, including transitional and other reliefs, may be obtained at www.gov.uk
- Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the valuation officers of the Valuation Office Agency (VOA), an agency of Her Majesty’s Revenue and Customs. They draw up and maintain a full list of all rateable values, available on their website: www.gov.uk/government/organisations/valuation-office-agency
. The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date. For the revaluation that came into effect on 1 April 2017, this date was set as 1 April 2015.
The valuation officer may alter the value if the circumstances change. The ratepayer (and certain others who have an interest in the property) can appeal against the value shown in the list if they believe it is wrong. Full details on your rights of appeal are available from the VOA or at www.gov.uk/business-rate-appeals
. Borough of Broxbourne Council can only backdate any business rates rebate to the date from which any change to the list is to have effect.
The VOA will continue to fulfil their legal obligations to alter rating assessments if new information comes to light indicating the valuation is inaccurate. Further information about the grounds on which appeals may be made and the process for doing so can be found on the www.gov.uk
website or obtained from your local valuation office.
National Non-Domestic Rating Multiplier - Borough of Broxbourne Council works out the business rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers: the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The former is higher to pay for small business rate relief. Except in the City of London where special arrangements apply, the Government sets the multiplier for each financial year for the whole of England according to formulae set by legislation. The current multipliers are shown on the front of your bill.
Business Rates Instalments - Payment of business rate bills is automatically set on a 10-monthly cycle. However, the Government has put in place regulations that allow businesses to require Borough of Broxbourne Council to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact Borough of Broxbourne Council as soon as possible.
Revaluation 2017 and Transitional Arrangements – All rateable values are reassessed at a general revaluation. The 2017 revaluation takes effect from 1 April 2017. Revaluations make sure each ratepayer pays their fair contribution and no more, by ensuring that the share of the national rates bill paid by any one ratepayer reflects changes over time in the value of their property relative to others. Revaluation does not raise extra money for Government.
Whilst the 2017 revaluation will not increase the amount of rates collected nationally, within this overall picture, over 7 out of 10 ratepayers will receive a reduction or no change in their bill and some ratepayers will see increases.
For those that would otherwise see significant increases in their rates liability, the Government has put in place a £3.6 billion transitional relief scheme to limit and phase in changes in rate bills as a result of the 2017 revaluation. To help pay for the limits on increases in bills, there also have to be limits on reductions in bills. Under the transitional scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the appropriate multiplier). The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to the property after 1 April 2017, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes. Changes to your bill as a result of other reasons (such as changes to the amount of small business rates relief) are not covered by transitional arrangements.
The transitional arrangements are applied automatically and are shown on the front of your bill. Further information about transitional arrangements and other reliefs may be obtained from Borough of Broxbourne Council or the website www.gov.uk/introduction-to-business-rates
More information on the 2017 revaluation can be found here
Unoccupied Property Rating - Business rates will not be payable in the first three months that a property is empty. This is extended to six months in the case of certain industrial properties. After this period rates are payable in full unless the unoccupied property rate has been reduced by the Government by order. In most cases the unoccupied property rate is zero for properties owned by charities and community amateur sports clubs. In addition, there are a number of exemptions from the unoccupied property rate. Full details on exemptions can be obtained from Borough of Broxbourne Council. If the unoccupied property rate for the financial year has been reduced by order, it will be shown on the front of your bill.
The Government has introduced a temporary measure for unoccupied new builds from October 2013. Unoccupied new builds will be exempt from unoccupied property rates for up to 18 months (up to state aid limits) where the property comes on to the list between 1 October 2013 and 30 September 2016. The 18 month period includes the initial 3 or 6 month exemption and so properties may, if unoccupied, be exempt from non-domestic rates for up to an extra 15 or 12 months.
Partly Occupied Property Relief - A ratepayer is liable for the full non-domestic rate whether a property is wholly occupied or only partly occupied. Where a property is partly occupied for a short time, Borough of Broxbourne Council has discretion in certain cases to award relief in respect of the unoccupied part. Full details can be obtained from Borough of Broxbourne Council.
Small Business Rate Relief - Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to other mandatory relief or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.
In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £15,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 100%. For a property with a rateable value of not more than £12,000, the ratepayer will receive a 100% reduction in their rates bill.
Generally, this percentage reduction (relief) is only available to ratepayers who occupy either;
(a) one property, or
(b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899.
The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £19,999 outside London or £27,999 in London on each day for which relief is being sought. If the rateable value, or the aggregate rateable value, increases above those levels, relief will cease from the day of the increase.
The Government has introduced additional support to small businesses. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, the Government has confirmed that they will be allowed to keep that relief for a period of 12 months.
An application for Small Business Rate Relief is not required. Where a ratepayer meets the eligibility criteria and has not received the relief they should contact Borough of Broxbourne Council. Provided the ratepayer continues to satisfy the conditions for relief which apply at the relevant time as regards the property and the ratepayer, they will automatically continue to receive relief in each new valuation period.
Certain changes in circumstances will need to be notified to Borough of Broxbourne Council by a ratepayer who is in receipt of relief (other changes will be picked up by Borough of Broxbourne Council). The changes which should be notified are;
(a) the ratepayer taking up occupation of an additional property, and
(b) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of Borough of Broxbourne Council.
Charities and Community Amateur Sports Club (CASC) Relief - Charities and registered CASCs are entitled to 80% relief where the property is occupied by the charity or the CASC, and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the CASC (or of that and other CASCs). Borough of Broxbourne Council has discretion to give further relief on the remaining bill. Full details can be obtained from Borough of Broxbourne Council.
Relief for Local Newspapers
– The Government is providing funding to local authorities so that they can provide a discount worth up to £1,500 a year for 2 years from 1st April 2017, to office space occupied by local newspapers. This is up to a maximum of one discount per local newspaper title and per hereditament, and up to state aid limits. The relief will be delivered through local authority discretionary discount powers (under section 47(3) of the Local Government Finance Act 1988). Eligibility criteria for this relief is set out in a guidance note: “The case for a business rates relief for local newspapers”, which can be obtained at www.gov.uk/government/consultations/the-case-for-a-business-rates-relief...
Local Discounts - Local authorities have a general power to grant discretionary local discounts. Full details can be obtained from Borough of Broxbourne Council.
State Aid – The award of such discounts is considered likely to amount to state aid. However it will be state aid compliant where it is provided in accordance with the De Minimis Regulations EC 1407/2013. The De Minimis Regulations allow an undertaking to receive up to EUR 200,000 ‘de minimis’ aid over a rolling three year period. If you are receiving, or have received, any ‘de minimis’ aid granted during the current or two previous financial years (from any source), you should inform Borough of Broxbourne Council immediately with details of the aid received.
Hardship Relief - Borough of Broxbourne Council has discretion to give hardship relief in special circumstances. Full details can be obtained from Borough of Broxbourne Council.
- Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS - website www.rics.org
) and the Institute of Revenues, Rating and Valuation (IRRV - website www.irrv.org.uk
) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating adviser, you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further ad-vice before entering into any contract.
Rate Relief for businesses in rural areas
- Certain types of properties in rural settlement with a population below 3000 may be entitled to relief. The property must be the only general store, the only post office or a food shop and have a rateable value of less than £8,500, or the only public house or the only petrol station and have a rateable value of less than £12,500. The property has to be occupied. An eligible ratepayer is entitled to relief at 50% of the full charge whilst Borough of Broxbourne Council also has discretion to give further relief on the remaining bill. The 2016 Autumn Statement confirmed the doubling of rural rate relief from 50% to 100% from 1 April 2017. Borough of Broxbourne Council will be expected to use their local discount powers to grant 100% rural rate relief to eligible ratepayers from 1 April 2017. Full details can be obtained from Borough of Broxbourne Council. Details can be found at https://www.broxbourne.gov.uk/business-business-rates/rural-rate-relief
Information Supplied with Demand Notices
- Information relating to the relevant and previous financial years in regard to the gross expenditure of the local authority is available at http://www.broxbourne.gov.uk/business/business-rates
. A hard copy is available on request by writing to the council or calling 01992 785 504.
To obtain Hertfordshire County Council's council tax information you can: -