What are Business Rates?
Non-Domestic Rates, or Business Rates, are collected by local authorities and are the way that those who occupy non-domestic property contribute towards the cost of local services. The rates are pooled by central government and redistributed to local authorities as part of the annual formula grant settlement, in proportion to their adult population, except in the City of London where special arrangements apply.
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 your local authority and other local authorities in your area.
From April 2013, Business Rates administration changed and local authorities have been able to retain up to 50% of the Business Rates collected. There are also other local discretionary powers that came into force, including the power to retain income from renewable energy projects and economic growth.
Please use the links on the left for further information.
Copies of the Erewash Borough Council Guide to Council Tax and Business Rates for 2013/14, 2014/15, 2015/16, 2016/17 and 2017/18, containing details of gross expenditure and other financial information, can be viewed below:
- Erewash Borough Council 2013/14
- Erewash Borough Council 2014/15
- Erewash Borough Council 2015/16
- Erewash Borough Council 2016/17
- Erewash Borough Council 2017/18
The Derbyshire County Council Information Leaflet for 2013/14, 2014/15, 2015/16, 2016/17 and 2017/18, containing details of gross expenditure and other financial information can be viewed below:
- Derbyshire County Council 2013/14
- Derbyshire County Council 2014/15
- Derbyshire County Council 2015/16
- Derbyshire County Council 2016/17
- Derbyshire County Council 2017/18
Information on the services provided for and on behalf of the Police and Crime Commissioner for Derbyshire for 2013/14, 2014/15, 2015/16, 2016/17 and 2017/18 can be seen below:
- Police and Crime 2013/14
- Police and Crime 2014/15
- Police and Crime 2015/16
- Police and Crime 2016/17
- Police and Crime 2017/18
Information on the spending plans of the Derbyshire Fire Service for 2015/16, 2016/17 and 2017/18 can be seen by following the links below:
- Derbyshire Fire and Rescue Website
- Budget and Council Tax 2015/16
- Budget and Council Tax 2016/17
- Budget and Council Tax 2017/18
Information on Severn Trent/The Environment Agency for 2015/16, 2016/17 and 2017/18 can be viewed by clicking on the following links:
- Severn Trent 2015/16
- Severn Trent 2016/17
- Severn Trent 2017/18
- Environment Agency 2015/16
- Environment Agency 2016/17
- Environment Agency 2017/18
If you have any queries regarding your bill, have not yet received it or want to discuss a payment arrangement please contact the Revenues Section on 0115 9071000.
The Revenues Section has a Debt Recovery Protocol which can be viewed by clicking on the following link:
What is the Rateable Value of the property?
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 at www.voa.gov.uk.
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 1st April 2010, this date was set as 1st April 2008.
The valuation officer may alter the value if circumstances change. The ratepayer (and certain others who have an interest in the property) can also appeal against the value shown in the list if they believe it is wrong. Further information about the grounds on which appeals may be made and the process for doing so can be found on the VOA website or from your local valuation office.
Postal enquiries may be sent to:
Janet Alexander BA MRICS MCMI
Non-domestic Rates East
Valuation Office Agency
St Andrews Business Park
The main switchboard number to be used for the VOA is 03000 501 501.
The VOA has compiled the Rating List which comes into effect from 1 April 2017. The antecedent value date is 1 April 2015 and you can go online to review your draft rateable value by clicking on www.gov.uk/voa/revaluation
You can also view the VOA Revaluation Leaflet that has been published, which includes further information.
Business rates is a local tax that is paid by the occupiers of all non-domestic /business property, in the same way that council tax is a tax on domestic property.
Business rates are charged on most business properties such as shops, offices, pubs, warehouses and factories. However, the property doesn't have to be used for a business - if it is used for purposes which are not domestic it is likely to be rateable. We will send you a business rates bill each year.
The VOA sets the rateable value of business premises by using property details such as rental information. We use the rateable value and the business rates multiplier (set by central government) to calculate your business rates bill.
A property's rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date.
- Until 31 March 2017, the rateable values will be based on a valuation date of 1 April 2008
- From 1 April 2017, the rateable values will be based on the valuation date of 1 April 2015
The VOA regularly reassesses and updates the rateable values of all business properties, usually every five years. This is called a revaluation. This is done to maintain fairness in the system by redistributing the total amount payable in business rates, reflecting changes in the property market. revaluation does not raise extra revenue overall.
For more information on the 2017 revaluation, rateable values, and business rates go to www.gov.uk/introduction-to-business-rates.
Further information regarding other changes to Business Rates that come into force after April 2017 is available on the Reductions page of our website.
Ratepayers do not have to be represented in discussions about their rateable value or their rates bill.
Appeals against rateable values can be made free of charge. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (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 advice before entering into any contract.
Business Rates Reduction Scams Warning
Erewash Borough Council are warning local businesses to be aware of 'reduction' firms who are conning local businesses. In exchange for large fees, businesses are led to believe they will get their business rates reduced on appeal.
Local authorities are required to collect business rates on behalf of central government. Businesses are revalued and new rates are normally applied every five years. The last revaluation was carried out in 2010 but central government has postponed the revaluation that was scheduled for 2015 and it will now go ahead in 2017.
When the new rates are applied to business premises, we get complaints about rogue firms who deliberately target businesses whose rates have increased. They may charge fees of up to 45% commission to make an appeal against the revaluation.
Our advice to businesses is to say no to firms who cold call offering to do a rating appeal. Their contracts are often carefully worded and don't match up to verbal promises the salesperson makes. Once you've signed and paid you will have no automatic right to cancel.
Get advice from the local Valuation Office before you agree to anything. Details of the appeals procedure are included in the revaluation notification and in the notes accompanying the business rates bill. Details are also found on the valuation office website at www.gov.uk/government/organisations/valuation-office-agency or telephone 03000 501501. But remember, if you appeal your rates could go up as well as down.
Our advice is for businesses to be very cautious of claims from companies that say they can secure big reductions in business rates. Ask for written confirmation of such claims and if the company refuses, stay well clear.
Always be suspicious if asked to pay large sums of money up front, especially for something that you can actually instigate yourself.
Contact Details for Revenues Section
If you are either moving into or moving out of a property in our area, please complete and return the following form to the Revenues Section:
Telephone: 0115 9071000