The only way to calculate annual business rates liability is to multiply the rateable value (RV) from the business rates multiplier (UBR) which is set and released by the central government for the whole England every year for the period of 1st April to 31st March. The central government prepares two different uniform business rates multipliers one is a standard multiplier and the other is a small business multiplier.

Uniform business rates multiplier (UBR) is increased every year in line with CPI inflation.

Small Business Rates Multiplier

You qualify for small business rates multiplier if you fall under

  • The rateable value of the business is more than £15,001 but less than £50,999
  • You are in receipt of small business rates exemption

Standard Business Rates Multiplier

Unfortunately but the majority of businesses that are in London do not qualify for small business rates multiplier and are charged on the higher standard multiplier so if your business rateable value exceeds £51,000 you will be charged on the higher multiplier.

Historic Business Rates Multipliers

 

Year  Standard Business Rates Multiplier for business with larger than £51,000 RV
Small Business Rates Multiplier for business with less than £51,000 RV
2019/20 50.4p 49.1p
2018/19 49.3p 48.0p
2017/18 47.9p 46.6p
2016/17 49.7p 48.4p
2015/16 49.3p 48.0p
2014/15 48.2p 47.1p
2013/14 47.1p 46.2p
2012/13 45.8p 45.0p
2011/12 43.3p 42.6p
2010/11 41.4p 40.7p
2009/10 48.5p 48.1p
2008/09 46.2p 45.8p
2007/08 44.4p 44.1p
2006/07 43.3p 42.6p
2005/06 42.2p 41.5p
2004/05 45.6p
2003/04 44.4p
2002/03 43.7p
2001/02 43.0p
2000/01 41.6p
1999/00 48.9p
1998/99 47.4p
1997/98 45.8p
1996/97 44.9p
1995/96 43.2p
1994/95 42.3p
1993/94 41.6p
1992/93 40.2p
1991/92 38.6p
1990/91 34.8p

Business Rates Revaluation

The rateable values (RV) are revaluated every five years. The rateable values list is always valued two years in arrears for example when new revaluation will be published on 1st April 2021 and it will be based on values from 1st April 2019.

Uniform Business Rates Multipliers

The central government publishes draft changes in business rates multipliers well in advance and the currently proposed multipliers for 2020/2021 are as follows:

 

April 1st 2020 to 31st March 2021

Standard Business Rates Multiplier

51.2p

(1.58% increase)

Small Business Rates Multiplier

49.9p

(1.62% increase)