Business rates (NNDR) information

Business rates are also referred to as National Non Domestic Rates (NNDR), or uniform business rates.

The National Non Domestic Rates (NNDR), or business rates, collected by Preston City Council are the way businesses, and others who occupy a non domestic property, make a contribution towards the cost of local services.

Business rates are calculated using the same rate in the pound (the multiplier) across the whole of England.

From April 2005 there are two national multipliers. The national non domestic rate multiplier is used to calculate the rates for all businesses which do not qualify for small business rate relief, and the small business rate relief multiplier is used for those which do.

The actual amount a business will pay is calculated by multiplying the rateable value of the property by the relevant multiplier.

Some non-domestic properties are not rateable so no rates have to be paid for them, e.g farm buildings, churches and public parks.

Some properties are 'composite properties', i.e. partly domestic and partly non-domestic, for example a shop with living accommodation above. In these cases, business rates are payable for the non-domestic part and council tax is payable for the domestic accommodation.

Important changes

Further one-year increase in small business rate relief

The current temporary increase in Small Business Rate Relief, which started on 1 October 2010 and was due to end on 30 September 2011, will now continue for a further period (to 31 March 2013).

The measure doubles the usual rate of relief so that ratepayers with rateable values below £6,000 pay no rates at all for the period, while ratepayers with rateable values between £6,000 and not more than £12,000 receive tapered relief from 100% - 0%. There are no other changes to the scheme and the Government has confirmed that it will meet the costs of the increased levels of relief.

You need take no action. Once the legislation is in place, you will be sent a revised bill. In the meantime, you must continue to pay your current instalments, if you have any. Current collection and enforcement procedures will continue to apply to ratepayers who miss scheduled instalments.

Empty property rate relief threshold

In 2009/10 all empty properties with rateable values up to £15,000 were exempt from business rates. This temporary measure has been extended for a further 12 months - the whole of 2010/11, and the threshold has been increased to a rateable value of £18,000 in line with the general movement of property values at revaluation.

From 1 April 2011 the empty RV threshold will revert to £2,600. It was £2,200 but temporarily increased in 2009/10 and 2010/11. It has now been increased from £2,200 to £2,600 in line with the general movement of property values at revaluation.

Business rate deferral scheme

The Government has decided to put in place a business rates deferral scheme which will give you the option of spreading the Retail Price Index increase in your 2012-13 bill over three years, to help businesses manage their cash flow during the downturn. You will be able to defer payment of 3.2% of your 2012-13 bill - which is equivalent to 60% of the Retail Price Index increase - until 2013-14 and 2014-15. You will then pay back the total amount deferred over the next two years.

Information regarding this scheme will be issued to ratepayers in the near future.

2011 multipliers:

• The small business non-domestic multiplier for 2011/12 is 42.6p
• The non-domestic multiplier for 2011/12 is 43.3p

Provisional 2012 multipliers:

• The small business non-domestic multiplier for 2012/13 is 45p
• The non-domestic multiplier for 2012/13 is 45.8p