Calculation of liability

Rating Multiplier (Rate Poundage)

The multiplier, also sometimes referred to as the Uniform Business Rate (UBR), is a key factor in the calculation of your rates bill. it is set annually by central government and determines the percentage (expressed as pence in the pound) of the rateable value of the property that you will pay in business rates.

Since April 2005, two multipliers have been in effect. The small business multiplier, applicable to those businesses eligible for Small Business Rate Relief, is set at 45.8p (2008/2009).

The standard multiplier, which includes the supplement to pay for Small Business Rate relief, is set at 46.2p (2008/2009).

If you are entitled to any transitional arrangements or reliefs, this sum is then adjusted to reflect them, making a final total for your rates bill. The multiplier usually changes each year in line with inflation.

2000/2001 the Rating Multiplier was 41.6p
2001/2002 the Rating Multiplier was 43.0p
2002/2003 the Rating Multiplier was 43.7p
2003/2004 the Rating Multiplier was 44.4p
2004/2005 the Rating Multiplier was 45.6p
2005/2006 the Rating Multiplier was 42.2p for properties with a rateable value of £15,000 or more, and a new rate of 41.5p was introduced for properties with a rateable value of less than £15,000
2006/2007 the Rating Multiplier is 43.3p for properties with a rateable value of £15,000 or more, and 42.6p for properties with a rateable value of less than £15,000.
2007/2008 the Rating Multiplier is 44.4p for properties with a rateable value of £15,000 or more, and 44.1p for properties with a rateable value of less than £15,000.
2008/2009 the Rating Multiplier is 46.2p for properties with a rateable value of £15,000 or more, and 45.8p for properties with a rateable value of less than £15,000.

The calculation of Business Rates for 2008/2009 is based on the following principles:-

Rateable value multiplied by poundage of 45.8p (excluding the supplement to fund Small Business Rate Relief) if the percentage increase or reduction in amount payable is less than the percentages referred to in the Transition Scheme.
Rateable value multiplied by poundage of 45.8p (excluding the supplement to fund the Small Business Rate Relief) in respect of new property after 1 April 2004.
For all other properties, transition applies and the amount due is the base liability plus or minus the transitional adjustment.