How your bill is calculated

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 His Majesty's Revenue and Customs. They draw up and maintain a full list of all rateable values. These are available on their website.

The rateable value broadly represents the yearly rent the property could have been let for on the open market on a particular date.

If you have any queries regarding your rateable value or you wish to appeal against the value placed on your property, you should contact the Valuation Office direct.

Remember, you must pay the instalments shown on your bill until any appeal has been decided and a revised bill issued. Any overpayment will be refunded to you.

Revaluation 2023

The VOA has set new rateable values for all business properties from 1 April 2023. This is the yearly rent that could have been fetched on 1 April 2021. This was during the pandemic and the rent information reflects this.

National Non-Domestic Rating Multiplier

There are two multipliers - the standard non-domestic rating multiplier and the small business 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.

1. the standard multiplier for 2024 to 2025 is 54.6p
2. the small business multiplier for 2024 to 2025 is 49.9p

The multiplier is set by central government and normally changes every year in line with inflation. 

Transitional Relief and Supporting Small Business Schemes

Transitional Relief

Transitional relief limits how much your bill can change each year as a result of business rates revaluation. The last revaluation came into effect on 1 April 2023.

This means changes to your bill are phased in gradually, if you are eligible.

You may get transitional relief towards your 2023 to 2024 bill if your bill goes up by more than a certain amount. Limits continue to apply to yearly increases until the full amount payable is due (rateable value times the appropriate multiplier).

Any transition is automatically calculated by Stockton-on-Tees Borough Council and will be shown on your bill.

You can find further information about the scheme by visiting the Business Rates Relief page on the GOV.UK website.

Supporting Small Business Relief

This relief will help eligible ratepayers who as a result of the business rates revaluation are losing some or all of their Small Business Rate Relief (SBRR) or Rural Rate Relief (RRR) and are facing large increases in their bills. Increases will be capped at £600 per year from April 2023. This relief caps any increase to a maximum of £600 for the 2023 to 2024 financial year, then £1,200 for the 2024 to 2025 financial year and then finally £1,800 for the 2025 to 2026 financial year. A new revaluation is due for the following year.

To be eligible for the relief under the Subsidy Control Act you must not have exceeded the Minimal Financial Assistance limit of £315,000 over a 3 year period. Further guidance can be found in the Supporting Small Business Relief guidance on the GOV.UK website.

Charities and Community Amateur Sport Clubs are already entitled to mandatory 80% relief. As such they are not eligible for 2023 Supporting Small Business Relief.

Relief is automatically calculated by Stockton-on-Tees Borough Council and will be shown on your bill.

Find further information about the scheme on the Business Rates Relief page on the GOV.UK website.

Additional support for ratepayers that were affected by the 2017 revaluation

For those businesses that saw a reduction or loss of Small Business Rate Relief in 2017, the Government has extended their relief for a further year. This caps any increase at £600 each year from 2017 to 2018 to 2023 to 2024 (7 years) so the current year's charge will be capped at an increase of £4,200 over their bill payable in 2016 to 2017. The charge for 2024 to 2025 will no longer have this support.