Business Rate Calculator 2017
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Comprehensive Guide to Business Rates in 2017
Business rates, also known as non-domestic rates, represent a significant operating cost for companies across the UK. The 2017 revaluation marked a substantial change in how business rates were calculated, with many properties seeing adjustments to their rateable values for the first time since 2010.
Understanding the 2017 Business Rates System
The 2017 business rates system was based on several key components:
- Rateable Value: The open market rental value of your property as assessed by the Valuation Office Agency (VOA) on 1 April 2015
- Multiplier: A figure set by central government (47.9p for standard properties in 2017-18, 46.6p for small businesses)
- Reliefs: Various discounts available depending on your circumstances
- Transition Scheme: Phased adjustments for properties with significant value changes
Key Changes in the 2017 Revaluation
The 2017 revaluation introduced several important changes:
- Updated Property Values: Based on rental values from April 2015 rather than 2008
- New Relief Thresholds: Small business rate relief extended to properties with rateable values below £12,000 (previously £6,000)
- Transition Scheme: Limits on bill increases (5% for small properties, 10% for medium, 15% for large) and decreases (4.1% for small, 4.1% for others)
- Supplementary Rate: For properties with rateable values over £51,000 in England
How Business Rates Are Calculated
The basic formula for calculating business rates is:
Rateable Value × Multiplier = Basic Business Rate
(minus any reliefs or adjustments)
For example, a property with a rateable value of £20,000 in England would calculate as:
£20,000 × 0.479 = £9,580 annual rate
(before any reliefs)
Types of Business Rate Relief Available in 2017
| Relief Type | Eligibility | 2017-18 Value |
|---|---|---|
| Small Business Rate Relief | Properties with rateable value below £12,000 | 100% relief for properties below £6,000, tapering to £12,000 |
| Rural Rate Relief | Businesses in rural areas with population below 3,000 | 50-100% relief available |
| Charitable Rate Relief | Registered charities and community amateur sports clubs | Up to 80% relief |
| Retail Discount | Occupied retail properties with rateable value below £51,000 | 1/3 off bills for 2017-18 and 2018-19 |
| Enterprise Zone Relief | Businesses in designated enterprise zones | Up to 100% relief for 5 years |
The 2017 Transition Scheme Explained
The transition scheme was introduced to phase in significant changes to business rates bills following the 2017 revaluation. The scheme applied automatic adjustments to bills where properties saw:
- Increases: Capped at 5% (small), 10% (medium), or 15% (large) per year
- Decreases: Capped at 4.1% per year (except for properties with rateable value below £28,000 in London or £20,000 elsewhere, which saw full decreases)
Properties were categorized by size based on their rateable value:
| Property Size | Rateable Value Range | Maximum Annual Increase |
|---|---|---|
| Small | Up to £20,000 (£28,000 in London) | 5% |
| Medium | £20,001 to £100,000 | 10% |
| Large | Over £100,000 | 15% |
Common Challenges with 2017 Business Rates
Many businesses faced challenges with the 2017 revaluation:
- Valuation Accuracy: Some businesses disputed their new rateable values, claiming they didn’t reflect true market conditions
- Regional Disparities: Properties in areas with rapidly rising values (like London) saw significant increases
- Complex Reliefs: Understanding and applying for available reliefs proved difficult for many small businesses
- Cash Flow Impact: Even with transition relief, some businesses struggled with increased costs
- Appeals Process: The “Check, Challenge, Appeal” system introduced in 2017 was criticized for being overly complex
How to Appeal Your 2017 Business Rates
The 2017 system introduced a new three-stage appeals process:
- Check: Verify your property details on the VOA website
- Challenge: Submit evidence if you believe the valuation is incorrect
- Appeal: Formal appeal to the Valuation Tribunal if the challenge is unsuccessful
Key deadlines for the 2017 revaluation:
- 31 March 2023: Final date to backdate challenges to 1 April 2017
- 31 March 2023: Final date to make new challenges for the 2017 list
Expert Tips for Managing Business Rates
Based on our analysis of the 2017 system, here are professional recommendations:
- Review your valuation: Even in 2017, many businesses didn’t check if their rateable value was accurate
- Explore all reliefs: The 2017 system offered more reliefs than many businesses realized – particularly for small businesses and retailers
- Plan for transitions: If your property value increased significantly, the transition scheme could spread the impact over several years
- Consider professional help: For complex properties or large rateable values, a rating surveyor could potentially save you more than their fee
- Monitor changes: The 2017 revaluation was based on 2015 values – market changes since then might support an appeal
Authoritative Resources on 2017 Business Rates
For official information about the 2017 business rates system, consult these authoritative sources:
- UK Government: Introduction to Business Rates – Official guide to how business rates work
- GOV.UK: Business Rates Revaluations – Detailed information about the 2017 revaluation
- Valuation Office Agency Blog – Insights directly from the organization responsible for property valuations
- ICAEW: Business Rates Guidance – Professional accountancy body’s guidance on business rates
Frequently Asked Questions About 2017 Business Rates
Q: How often are business rates revalued?
A: Business rates are typically revalued every 5 years. The 2017 revaluation was based on rental values from April 2015. The next revaluation was originally scheduled for 2022 but was delayed to 2023 due to the pandemic.
Q: Can I still appeal my 2017 business rates?
A: The formal appeal process for the 2017 revaluation closed in March 2023. However, you can still check your property details and report any factual errors to the VOA.
Q: What was the small business multiplier in 2017-18?
A: The small business multiplier for 2017-18 was 46.6p in England. This applied to properties with a rateable value below £51,000 that weren’t entitled to small business rate relief.
Q: How did the 2017 revaluation affect different regions?
A: The impact varied significantly by region. London and the Southeast saw some of the largest increases (average 12.5% and 10.8% respectively), while the Northeast saw average decreases of 10.4%.
Q: What was the retail discount in 2017-18?
A: Occupied retail properties with a rateable value below £51,000 received a one-third discount on their business rates bills for 2017-18 and 2018-19.