/ Jun 23, 2026
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Are business rates holding back your business? – Growth Business

Because business rates are based on factors such as the square footage of your property, taking on a larger office, opening a second site, adding warehouse space or expanding a retail location can all lead to an increase in your bill.

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For a growing business, this means business rates need to be factored into cash flow, lease negotiations and expansion planning.

Here’s everything you need to know about how business rates work, how they are calculated and what to check before taking on new premises.

What are business rates?

Business rates are a tax on most non-domestic properties. Whether your company has a shop, office, warehouse, factory, workshop, pub, restaurant or any other type of commercial premises, you will usually have to pay them.

Your rates are based on your property’s rateable value. This is an estimate of the property’s annual rental value on a specific, fixed valuation date. The Valuation Office Agency (VOA) is responsible for maintaining the rateable values for properties in England and Wales, while your local council issues the bill and collects payment.

In order to estimate your annual business rates bill, you simply multiply your property’s rateable value by the relevant multiplier (more on this below). You may also be eligible for reliefs and discounts, which can reduce the amount you end up paying.

For example, if your rateable value is £60,000 and the relevant multiplier is 48p, the annual bill before relief would be:

£60,000 x 0.48 = £28,800

That bill is normally split into instalments by your local authority.