Business Rates - Frequently Asked Questions

1.How can I find out the rateable value of a business property?
If you want to check your own or any other rateable values in the East Devon area, or in other parts of the country, you can find the information on the Valuation Office website www.voa.gov.uk.

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2. How can I appeal against my rateable value?
You can make an appeal against your rateable value:

a) if you think the rateable value (RV) shown in the rating list (and on your bill) is wrong, e.g. following a revaluation or when the property is first valued;

b) if there has been a change in circumstances which affects the value of the property, e.g. part of the building has been demolished or destroyed or there has been a change in use of the building or in the use of the neighbouring property.

It costs nothing to appeal and if you do not agree with the valuation officer’s decision, you can appeal to the Valuation Tribunal. You can get an appeal form from the Exeter Valuation Office .

Please remember that you must pay your business rates even if you have appealed against your rateable value.

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3. How do I register for business rates?
You can contact the business rates team:
1. by PHONE: on 01395 517445 Monday to Friday between 8.30am and 5pm.
2. by FAX: on 01395 517414
3. in WRITING: to Business Rates, East Devon District Council, Knowle, Sidmouth, EX10 8HL
4. in PERSON: visit the Council Offices at Knowle in Sidmouth Monday to Friday between 8.30am and 5pm.
5. by E-mail: revenues@eastdevon.gov.uk

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4. How much will I have to pay?
We work out your business rates bill by multiplying your rateable value by the rate poundage, or 'multiplier' as it is known. The Government sets the multiplier each year for the whole of England and Wales. The standard multiplier for 2011/2012 is 43.3p so if your rateable value is £20,000 your bill would be £8,280, unless it is subject to Transitional Phasing. If you qualify for Small Business Rate Relief (SBRR) the multiplier for 2011/2012 is 42.6p.

You can find more information about transitional relief and SBRR.by visiting the official Government website www.businesslink.gov.uk.

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5. What is transitional phasing?
Business properties are revalued every 5 years and rateable values may change. Transitional phasing arrangements help to limit the effects of any changes so that bills do not increase or decrease beyond certain limits in any year. Increases are limited by transitional relief and decreases by transitional levy. These limits continue to apply over the life of the scheme until the full new amount is due (rateable value x the multiplier). Your bill will automatically show whether or not your property is subject to transitional relief or levy.
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6. Can I pay by direct debit?
Yes. We can take your instruction over the phone. Just ring the business rates team on 01395 517445. We will normally offer you a choice of two payment dates, either the 1st or the 17th of the month. If you prefer, you can fill out a Direct Debit mandate (72KB - 18 August 2009 - PDF Help) and return it to us.

If you have lost the right to pay by instalments because you have been sent a Final Notice or Summons, you can still pay by direct debit if you contact the business rates team on 01395 517445 and agree a special arrangement to pay.

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7. Will I be charged for business rates if I work from home?
You may have to pay business rates for the part of the property you use for your work. But if you are only using part of a room, as an office for example, and it makes no significant impact on the domestic use of the property, you may not be charged business rates.

If part of the property is business rated, you will still have to pay council tax for the rest (although your valuation band may change). It will depend on the circumstances of each case. You can find more information in the Valuation Office Agency leaflet 'Working at or from home' (140KB - 18 March 2008 - PDF Help) or you can contact the Exeter Valuation Office .

You should also remember that in most circumstances you will need to seek planning permission.

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8. Will I be charged if my property is empty?
Non-Domestic rates are not payable in the first 3 months that a property is empty (6 months for industrial property). After this period, rates are payable in full with certain exemptions. Properties which close seasonally will still pay at the full annual rate because the limited useage is already reflected in the rateable value.

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9. What do I get for my rates?
The business rates collected by East Devon District Council are paid into a central government ‘pool’ and then redistributed as grants to local councils. Together with the money collected from council tax, business rates contribute directly towards the costs of local services such as education, roads, police and fire services, domestic refuse collection, etc (business rate payers remain responsible for the cost of collecting their non domestic waste).

Our booklet What do I get for my money? (1459KB - 07 March 2012 - PDF Help) sets out our spending on these services and also gives details of spending by Devon County Council, Devon and Cornwall Police Authority and Devon and Somerset Fire & Rescue Authority.

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10. Can village shops and post offices get any sort of business rate relief?
Yes. The Council is allowed to give 50% relief from rates to post offices and general stores in areas designated as rural settlement areas. There are currently 77 rural settlement areas in East Devon.

To qualify for the relief the property MUST:
a) be within the boundaries of the settlement area

b) have a rateable value (RV) of less than £8,500

c) be used, in whole or part, as a general store or post office, or both, and

d) be either the only general store or the only post office in the settlement.

If there is both a general store and a post office in the same settlement, they will both be entitled to the relief if they meet the conditions above. If there is more than one general store or more than one post office, none will qualify.

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11. Can any other village businesses, apart from village shops and post offices, get business rate relief?
Yes. The Council is allowed to give 50% relief from rates to certain other businesses in areas designated as rural settlement areas.
The other types of business which can qualify for 50% relief are:

1. food shops with a rateable value of up to £8,500;
2. the only village pub and the only petrol station as long as they have a rateable (RV) of up to £12,500.

If you have a business in a qualifying rural village with a rateable value of up to £16,500, the Council can give you up to 100% relief. You can find out more about rural rate relief by contacting the business rates team on 01395 517445.

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12. I am only using part of my premises. Is there any business rate relief that I can apply for?
Yes. Section 44(a) relief may be awarded for a limited period if, temporarily, you are only using a clearly definable part of your premises and the remaining area is completely unused.

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13. I am having difficulty paying my business rates. Can I make a special arrangement?
If you can't pay the instalments as shown on your bill, you may be able to make a special arrangement to pay. Contact the business rates team on 01395 514445 to discuss a payment plan.

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14. Why have I received a business rates reminder/final notice/summons?
You must pay your business rates as shown on your bill (or on your reminder, final notice or special arrangement). If you fail to do so, we will take recovery action against you if you do not meet both the payment dates and the instalment amounts.

Please remember, you must still pay your business rates even if you have appealed against your rateable value or if you are waiting for the result of an application for any form of rate relief.

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Page last updated on 24 May 2012