Running a business comes with many financial responsibilities, and one that often confuses or catches business owners off guard is business rates payment. Whether you’re a seasoned operator or just opened your doors, knowing how, when, and why you must pay business rates is key to keeping things running smoothly.
Business rates are a local tax that most non-domestic properties pay. This includes offices, shops, pubs, warehouses, and even holiday lets. It’s charged by your local council and used to fund local services. Understanding your obligations means avoiding surprise costs and penalties.
If you own or rent a commercial property, chances are you’re responsible for paying business rates. Some Small Businesses may qualify for relief, which we’ll explore below.
Paying your rates is straightforward once you’ve set up your business rates account. Here's how most councils allow you to pay business rates:
Paying business rates on time helps you avoid fines and interest. Councils usually issue annual bills in February or March, with payments spread across ten months. You can ask to switch to 12 monthly instalments.
If you miss a payment, you may receive a reminder notice. If you ignore this, you could lose the right to pay in instalments and owe the full year’s amount immediately.
Yes. Relief schemes are available depending on your situation:
Most councils allow you to manage everything online. You’ll need your business rates reference number and some basic business details to register. Once set up, you can:
If you run a holiday let, your property might be assessed for business rates instead of council tax. This usually applies if:
Holiday cottages can also claim Small Business Rate Relief in many cases, reducing your bill significantly.
Rates are calculated using your property’s rateable value (assessed by the Valuation Office Agency) multiplied by a multiplier set by the government. The result is your annual business rates bill before reliefs.
If your rateable value is £15,000 and the multiplier is 51.2p, your annual bill would be £7,680—before any applicable reliefs.
Go to your local council’s website and search for ‘business rates account’. Log in or register to see your account details.
Yes. Although most new business choose monthly instalments, you can pay annually if that suits your cash flow better.
Yes. You may lose the right to pay in instalments and be required to pay the full balance. Interest or legal action may also follow.
Visit your council’s business rates page. There will usually be a form or portal to apply for relevant relief schemes.
The simplest method is to set up a direct debit. It’s automated, secure, and ensures you never miss a due date. Also, regularly check your business rates account online to ensure there are no issues or changes.
Business rates payment doesn’t need to be a hassle. With the right knowledge and tools, you can manage it efficiently, avoid late fees, and even lower your bill through relief schemes. Whether you're running a shop, a warehouse, or a holiday cottage, staying on top of your responsibilities will help your business thrive.
