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Council tax and business rates
Business Rates (National Non-Domestic Rates, NDR or NNDR)
Adur Council collects business rates. The business rate system is called 'National Non-Domestic Rates'. The government sets the rate and the Inland Revenue sets the rateable value of a property. They collect the rates and pass the money to the government, who then pass it to local authorities depending on their size.
All telephone enquiries relating to business rate payments, changes of occupation and other general enquiries should be made to :
- Adur District Council : (01273) 263111
or Send council tax and business rates an e-mail
All telephone enquiries relating to the rating list and appeals against rateable values should be made to the :
- District Valuation Officer : (01903) 707948
Sections on this page :
- Non-Domestic Rating Explanatory Notes
- Non-Domestic Rates
- Rateable Value
- National Non-Domestic Rating Multiplier
- Revaluation and Transitional Arrangements
- Unoccupied property rating
- Charitable relief, relief for registered Community Amateur Sports Clubs (CASCs) and Discretionary Relief
- Rate relief for new, non-agricultural business on previously agricultural land or buildings
- Rating advisors
- On-line forms : note these can be filled out on-screen, but then need to be printed off, signed and returned.
- Small Business Rate Relief (SBRR)
Non-Domestic Rating Explanatory Notes
2009/10 Business Rates Deferral Scheme
You may now be able to spread the payment of the increase in your 2009/10 Business Rates bills over a three year period. Please see the attached leaflet which provides details of the scheme.
This is available for this financial year only. If you wish to opt into the scheme, an application form is attached.
The form asks for your name, the address of the property of which you are making the application for and the property reference (which can be found on your Business Rates bill). Please sign and return your completed form to:
- Census NDR Deferred Payment,
c/o Adur district Council
Freepost SEA 6744,
Civic Centre, Ham Road,
Shoreham-by-Sea,
West Sussex, BN43 6ZZ
If your bill has increased as a result of the end of the current transitional relief period, you may be able to defer 60% of this increase in your bill. If you do not qualify for transitional relief, you can still defer 3% of your total 2009/10 bill.
You can apply at any time up to 31 March 2010 provided you have some of your bill left to pay. We would encourage you to apply early. If you have less then 3% left to pay, you can defer the remaining balance.
Small Business Rate Relief
Should you wish to make an application for Small Business Rate Relief please see Small Business Rate Relief (SBRR) below
See also :
- Business rates deferral scheme 2009-10 Fact sheet (.PDF 45KB)
- Adur NNDR explanatory notes 2009-10 (.PDF 35KB)
- Adur NNDR explanatory notes 2010-11 (.PDF 35KB)
- CenSus non-domestic rate - transition 2010 (.PDF 70KB)
Non-Domestic Rates
The non-domestic rates, or business rates collected by local councils are the means by which businesses and others who occupy non-domestic property make a contribution towards the cost of local services. Except in the City of London where special arrangements apply, the rates are pooled by central government and redistributed to local councils according to the number of people living in the area. The money, together with revenue from council taxpayers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by your local council and other local authorities in your area.
Rateable Value
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. It draws up and maintains 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 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 www.voa.gov.uk or from your local valuation office.
The effect of successful appeals against values shown in the rating list that came into force on 1 April 2005 will normally be backdated to the beginning of the financial year in which they are made, although there are exceptions to this. Further information about these arrangements may be obtained on the ODPM website at : www.local.odpm.gov.uk/finance/busrats/guide/index.htm.
National Non-Domestic Rating Multiplier
The local authority works out the Business Rates bill by multiplying the rateable value of the property by the appropriate multiplier. From 1 April 2005 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. The Government sets the multipliers for each financial year for the whole of England. The Government normally changes both multipliers every year in line with inflation. By law, the multipliers cannot go up by more than the rate of inflation apart from some minor adjustments to counteract losses from appeals and, in relation to the standard multiplier, to pay for small business rate relief. In the year of a revaluation it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year. The current multipliers are shown on the front of the bill.
Revaluation and Transitional Arrangements
All rateable values are reassessed every five years at a general revaluation. The current rating list is based on the 2010 revaluation. Five-yearly 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 2010 revaluation will not increase the amount of rates collected nationally, within this overall picture, over a million properties will see their business rate liabilities reduced and some ratepayers will see increases.
For those who would otherwise see significant increase in their rates liability, the Government has put in place a £2 billion transitional relief scheme to limit and phase in changes in rate bills as a result of the 2010 revaluation. To help pay for the limits on increases in bills, there also have to be limits on reductions in bills. Under the transition 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 1st April 2010, transitional arrangements will not normally apply to the part of the 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 rate relief) are not covered by the transitional arrangements.
The transitional arrangements are applied automatically and are shown on your bill.
Further information about transitional arrangements and other reliefs may be obtained from Adur District Council or the website www.businesslink.gov.uk
More information on revaluation 2010 can be found at www.voa.gov.uk
The Valuation Office Revaluation helpline no is 0845 602 2010.
Unoccupied property rating
The Chancellor of the Exchequer has announced as of 1st April 2008 Business Rates will not be payable in the first three months on a property that is empty. This is extended to six months in the case of certain industrial properties. After this period, rates are payable in full. Properties with a Rateable Value of less than £2,200 and listed buildings are exempt indefinitely unless occupied.
It is hoped that these changes will provide a strong incentive to bring empty property back into use. This will help increase the supply of premises to let, and so reduce business rents and improve the competitiveness of the UK, as well as bring forward brownfield sites for re-development.
These changes will affect the rate liability as follows :
- Most premises that have been empty for more than three months will be liable for 100% of the rates.
- Any industrial premises that have been empty for more than six months will be liable for 100% of the rates.
- Empty premises owned by charities or community amateur sports clubs will have zero rate liability if it appears likely to be next used for the purposes of the charity or club.
- Following consultation with interested parties, the government has decided to retain all other existing rate reliefs.
- A new permanent exemption for empty property rates will be introduced for empty non-domestic properties owned by companies in administration.
It is important to notify the council promptly if a property is occupied or tenanted.
Charitable relief, relief for registered Community Amateur Sports Clubs (CASCs) and Discretionary Relief
Registered charities are entitled to relief from rates on any non-domestic property that is wholly or mainly used for charitable purposes. Registered CASCs are also entitled to relief from rates on any non-domestic property that is wholly or mainly used for the purposes of that club, or that club and of other such registered clubs. In both cases, relief is given at 80 per cent of the bill and local councils have discretion to give further relief on the remaining bill.
Authorities also have discretion to give relief on all or part of any rate bill for property occupied by certain non-profit making bodies. They can also consider giving rate relief in cases of hardship or where part of a property is beyond use for a certain period.
Applications for Charitable Relief can be made by post or on-line by sending council tax and business rates an e-mail.
Rate relief for new, non-agricultural business on previously agricultural land or buildings
Rate relief is available for certain businesses with rateable values of up to £7,000, where the business is set up on previously agricultural land or buildings. Subject to certain conditions, the business will get a 50 per cent reduction in the rates bill for up to five years. Local councils have discretion to give further relief on the remaining bill on such property.
Rating advisors
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 (RICS website : www.rics.org) and the Institute of Revenues Rating and Valuation (IRRV website : www.irrv.net) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating advisor, 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.
All telephone enquiries relating to business rate payments, changes of occupation and other general enquiries should be made to :
- Adur District Council : (01273) 263111
or send council tax and business rates an e-mail
All telephone enquiries relating to the rating list and appeals against rateable values should be made to the :
- District Valuation Officer : 0845 602 1507
Small Business Rate Relief (SBRR)
A new relief that the Government have introduced from 1 April 2005 for small businesses and non-domestic properties.
Non-Domestic properties (including beach huts) with a rateable value of under £12,000 may benefit from a percentage reduction in their rate liability of up to 50% on a sliding scale of relief. The smaller the rateable value, the greater the reduction. Anyone whose property has a rateable value of between £12,000 and £14,999 can also apply and may receive a reduction by being charged at a lower rate poundage (£0.407 instead of £0.414).
Ratepayers must apply to their local authority for the required form. The scheme has conditions laid down which must be satisfied and these are provided in detail with each application form. Basically, the property which relief is being applied for must be the only liability for non-domestic rates in England, and have a rateable value of under £12,000. If the ratepayer has other non-domestic rates properties, the total rateable value of all the properties must not be more than £17,999, and relief will only be given on the property with the greatest rateable value, provided the rateable values of the others are under £2,599.
Application cannot be made earlier than six months in advance, or later than six months after the end of the relevant financial year.
The relief applies only to properties subject to a full charge. Relief cannot be given on any empty non-domestic properties for which a ratepayer is liable to pay a charge.
Note : this can be filled out on-screen, but then needs to be printed off, signed and returned.
- Small
Business Rate Relief on-line application form
Note : see conditions of relief notes below
For further information please contact :
- Revenues Section NNDR
Tel : (01273) 263490 or send council tax and business rates an e-mail
Small Business Rate Relief : Conditions of Relief
The form must be signed by the ratepayer making the application and must be sent to the billing authority within six months of the end of the financial year to which it relates. The property must be shown in the Local Rating List on 1 April in the relevant year. From 1st April 2009 a property qualifies for the relief from the date it enters the Rating List.
Application cannot be made more than six months in advance or later than six months after the end of the relevant financial year, for example by 30 September 2009 in respect of application for April 2008 - March 2009 period. The application must be signed by the ratepayer or a person authorized to sign on behalf of the ratepayer. Where the ratepayer is :
- a company - a director of that company
- a partnership - a partner of that partnership
- a trust - a trustee of that trust
- in any other case - a person duly authorized to sign on behalf of the ratepayer
This relief is available to ratepayers who apply to their local authority and who occupy either :
(a) one main property, or
(b) one main property and other additional properties providing those additional properties each have a rateable value of less than £2,599
The rateable value of the property mentioned in (a) or the total value of the properties mentioned in (b) must be under £15,000. PLEASE NOTE : All properties in England occupied by the ratepayer must be listed.
If an application for relief is granted, provided the ratepayer's circumstances do not change, the ratepayer will not need to re-apply for relief in each new valuation period.Certain circumstances will need to be notified to the local authority by the ratepayer (other changes will be picked up by the local authority). The changes which must be notified are :
- the ratepayer taking up occupation of a property they did not occupy at the time of making their application for relief, either in the local area or any other; and
- an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief
Notification of these changes must be given to the local authority within four weeks of the date the change happened. There need then be no interruption to entitlement to relief. However, failure to notify the authority within this timeframe will mean the ratepayer ceases to be entitled to relief from the day the change happened. If still eligible, relief will resume from the day the local authority IS notified. Notification that the ratepayer has taken occupation of an additional property must be by way of a fresh application for relief; notice of an increase in rateable value must be given in writing, giving details of the new rateable value and the effective date of the change.
Notes :
- Interaction with other reliefs :
If a ratepayer is eligible for mandatory charity relief or rural rate relief, then they receive THAT relief rather than the small business rate relief.
Where a property is the subject of a transitional adjustment following the revaluation, the small business rate relief is applied AFTER the transitional adjustment has been made. - Amount of relief :
You will be charged using the small business multiplier (£0.441 instead of £0.444 for 2007/2008) (£0.458 instead of £0.462 for 2008/2009)(£0.407 instead of £0.414). You will be entitled to 50% relief at rateable value £6,000 or less. The amount of relief tapers to nil at rateable value £12,000.
For properties with a rateable value between £12,000 and £17,999 you will pay rates calculated using the small business multiplier.
