Business Rates

About Business Rates

Non-Domestic Rates, or business rates, collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services. Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally. 

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 Isle of Wight Council and other local authorities in your area.

A company or a person who occupies all or part of a non-domestic property is liable to pay Business Rates on this property.

All Non Domestic Rated properties have a rateable value which is set by the Valuation Office Agency (VOA), part of H.M. Revenue and Customs. The Rateable Value of your property is shown on the front of your bill.  The council uses the rateable value provided by the Valuation Office Agency (VOA) to work out how much you pay.  It is calculated by multiplying the rateable value of the property by the national non-domestic multiplier.   You can check your rateable value and compare it with others on the VOA website www.voa.gov.uk

If you think your rates are wrong, contact the VOA on telephone number 03000 501501

Revaluation

Revaluation usually takes place every 5 years to reflect changes in the property market.  The most recent revaluation in England and Wales was 1st April 2010.  The next revaluation will be in 2017 in England. 

At revaluation, the multipliers are revised so that the overall national business rates bill only changes in line with inflation. 

More information on the 2010 Revaluation can be found at www.voa.gov.uk

Transitional Arrangement Scheme 

Property values can change substantially between each five year revaluation.  The transitional arrangement scheme sets limits on the amount your bill can increase or decrease each year.  This will continue to apply to yearly increases/decreases until the full amount is due.  After these limits have been applied your bill will also increase in line with inflation.

The Council will automatically calculate any transitional arrangement against your NNDR bill, there is no need to apply for this.  

Change in circumstances

Your business or premises change

You must inform us when:

  • You move or make changes to your premises.
  • The nature of your business changes.

You must report any changes to us to make sure you are paying the right amount and don’t get a backdated increase in your bill.

Moving premises/change of address

 You need to inform us when:

  • You move into a new business premises.
  • You move out of a business premises.
  • Any other change in circumstances.

This is to make sure we are billing you for the correct amount of Business Rates.

We will need the following information from you:

  • the new address of the business
  • the date you purchased or leased the property;
  • the date you are moving into the property;
  • the name and address of your landlord if you are leasing the property;
  • the name of the business and to whom the bill should be addressed.

You can inform us about these changes by using the 'Send a Message' tab at the top of this web page, or by completing the online change of address form which can be found at the 'Forms' tab above. 

Working from Home

If you work at or from home, you should be aware that the accommodation within your home (such as an office/workshop etc) may be liable to business rates whilst the remainder of the property will continue to be liable to council tax (although an alteration may be made to its banding).

There are many considerations that must be made in deciding whether a room in a house used as an office/workshop should be liable to business rates and each case is considered on its own merits. The Valuation Office Agency will consider the effect of the extent and frequency of the non domestic use of the room and any modifications made to the property to accommodate that use.

Each case is considered on its own merits, and normally a member of staff from the Valuation Office will visit the property to check the facts before an assessment is made for non domestic rates.