VOA Business Rates Explained: A Guide for Business Owners

Business premises come with a long list of running costs, and business rates can be one of the larger expenses to budget for. Whether you operate from a shop, office, warehouse, restaurant, factory or another commercial property, understanding how VOA business rates work can help you check whether your bill looks reasonable and whether you could qualify for financial support.

There were significant changes from 1 April 2026, including a new rating list and a new five-multiplier system in England. This means businesses relying on older business rates figures could significantly misjudge their property costs.

For most businesses, the process can be understood in three simple stages:

• The Valuation Office Agency Sets The Rateable Value
• The Government Sets The Relevant Multiplier
• The Local Council Calculates And Collects The Bill

Understanding where each organisation fits into the process makes it much easier to know who to contact when there is a problem.

What Are VOA Business Rates?

The Valuation Office Agency, commonly called the VOA, assesses non-domestic properties in England and Wales and gives each qualifying property a rateable value.

The rateable value is one of the main figures used when calculating business rates.

It is important to understand that the VOA does not normally decide the final amount you pay. Your local authority uses the rateable value together with the relevant multiplier and any applicable reliefs to calculate the final bill.

Business rates normally apply to commercial properties including:

• Shops
• Offices
• Restaurants
• Pubs
• Warehouses
• Factories
• Salons
• Workshops
• Hotels
• Some holiday accommodation

The official GOV.UK business rates information confirms that local councils issue business rates bills, while questions about the property’s rateable value are normally dealt with by the Valuation Office Agency.

For businesses, this distinction is useful. If the bill itself appears wrong, the council is usually the first point of contact. If the property valuation looks incorrect, the issue may need to be raised with the VOA.

Why Business Owners Should Check Their 2026 Rateable Value?

A major business rates revaluation took effect on 1 April 2026. The new rating list means businesses may now have a different rateable value from the one used for previous bills.

For the 2026 rating list, valuations are based broadly on the estimated rental value of the property at 1 April 2024. That does not mean your rateable value will be the same as the rent you currently pay.

Commercial rental markets can change significantly over time, and several factors can affect how a property is valued, including:

• Location
• Floor Space
• Property Type
• Business Use
• Layout
• Local Rental Evidence
• Parking And Storage
• Property Features
• Comparable Premises

A change in rateable value can affect operating costs even if nothing else about the business has changed.

This makes the 2026 revaluation particularly important for businesses preparing budgets, renewing commercial leases or comparing the cost of different premises.

What Are The 2026 Business Rates Multipliers?

One of the biggest changes in 2026 is the move to five business rates multipliers in England.

Previously, businesses generally dealt with a standard multiplier and a small business multiplier. From 1 April 2026, the system separates certain retail, hospitality and leisure businesses from other properties.

Business Property	Rateable Value	2026/27 Multiplier
Small Retail, Hospitality And Leisure Property	Below £51,000	38.2p
Other Small Business Property	Below £51,000	43.2p
Standard Retail, Hospitality And Leisure Property	£51,000 To £499,999	43.0p
Other Standard Business Property	£51,000 To £499,999	48.0p
High-Value Property	£500,000 Or More	50.8p

This change matters because two businesses with similar rateable values could now use different multipliers depending on the type of property they occupy.

Retailers, hospitality operators and leisure businesses should therefore make sure the correct RHL multiplier has been applied rather than assuming their bill is calculated in the same way as an office or warehouse.

How Businesses Can Estimate Their Rates Bill?

The basic calculation remains relatively straightforward:

Rateable Value × Business Rates Multiplier = Basic Business Rates Liability

For example, imagine a qualifying retail business with a rateable value of £30,000.

Its applicable 2026/27 small RHL multiplier would be 38.2p.

The basic calculation would be:

£30,000 × 0.382 = £11,460

That gives a starting liability of £11,460 before applicable reliefs or other adjustments.

A business with the same £30,000 rateable value that does not qualify for the RHL multiplier would use the 43.2p small business multiplier:

£30,000 × 0.432 = £12,960

The difference is £1,500 before any further adjustments.

Businesses comparing premises or forecasting property costs can use the same principle when working out how to calculate business rates, although the actual council bill can change once reliefs and transitional measures are included.

Business Rates Are More Than A Property Tax Bill

For business owners, rates should be treated as part of the total cost of occupying commercial premises. A property with cheaper rent is not automatically cheaper to operate if its rateable value is comparatively high.

When assessing a new business location, it can be useful to look at:

Cost	Why It Matters
Commercial Rent	Usually the largest direct occupancy expense
Business Rates	Can substantially increase annual premises costs
Service Charges	Common in offices, retail parks and managed buildings
Utilities	Can vary significantly by property type
Insurance	May depend on the premises and business activity
Maintenance	Older or specialist properties can cost more to operate
Parking And Access	Can influence staff and customer convenience

Checking the rateable value before signing a lease can therefore help avoid unexpected costs later.

How To Check A Business Property’s Rateable Value?

Businesses do not need to wait until a rates bill arrives to check a property’s valuation.

The official Find a business rates valuation service allows businesses to look up the rateable value of properties in England and Wales. It can also be used to examine similar properties and see information about how a valuation was calculated.

This can be particularly useful when:

• Considering New Premises
• Reviewing A Lease Renewal
• Checking A New 2026 Valuation
• Comparing Nearby Commercial Properties
• Investigating An Unexpected Rates Increase
• Preparing A Valuation Challenge

Businesses should compare genuinely similar premises rather than simply choosing the lowest-valued property nearby. Differences in size, position, use, frontage, parking or layout can all influence a valuation.

What Business Rates Reliefs Are Available?

The final business rates bill can be considerably lower than the basic RV × multiplier calculation where a business qualifies for relief.

The range of available support is broader than many businesses realise.

Relief	Who It May Help
Small Business Rate Relief	Businesses occupying qualifying low-value properties
Rural Rate Relief	Certain businesses operating in qualifying rural areas
Charitable Rate Relief	Eligible charities and community organisations
Empty Property Relief	Certain unoccupied commercial properties
Improvement Relief	Businesses making qualifying improvements to their property
Transitional Relief	Businesses facing large increases following revaluation
Supporting Small Business Relief	Businesses losing some existing relief after the 2026 changes
Hardship Relief	Businesses facing serious financial difficulties
Enterprise Zone Relief	Eligible properties in qualifying Enterprise Zones
Freeport Relief	Eligible businesses within designated Freeport tax sites
Heat Networks Relief	Qualifying heat network properties
Pubs And Live Music Venues Relief	Eligible pubs and live music venues
EV Charging Point Relief	Certain separately assessed EV charging properties
Local Discretionary Relief	Schemes offered by individual councils

Businesses should not assume that relief will always be added automatically. Some support is applied automatically, while other schemes can require an application or evidence.

Checking the available reliefs with the billing authority can therefore be worthwhile whenever a new rates bill arrives.

Small Business Rate Relief Can Make A Major Difference

Small Business Rate Relief remains particularly important for smaller companies.

For qualifying businesses occupying one property in England:

• A Rateable Value Of £12,000 Or Less Can Qualify For 100% Relief
• Relief Reduces Gradually Between £12,001 And £15,000
• Properties At £15,000 Or Above Do Not Receive The Standard SBRR Reduction

This means a relatively small difference in rateable value can make a noticeable difference to annual occupancy costs.

Growing businesses should also review their position when taking additional premises because occupying more than one property can affect eligibility, although temporary protections may apply in some circumstances.

What Happened To Retail, Hospitality And Leisure Relief?

Businesses in retail, hospitality and leisure should pay particular attention to the 2026 changes. The previous temporary RHL relief system ended on 31 March 2026 for new liabilities.

From 1 April 2026, qualifying properties below £500,000 rateable value benefit instead from lower dedicated RHL multipliers.

The change is designed to provide more permanent support through the multiplier itself rather than relying entirely on an annual temporary discount.

Businesses affected can include qualifying:

• Shops
• Restaurants
• Cafés
• Pubs
• Hotels
• Cinemas
• Leisure Facilities
• Entertainment Venues

The exact property use matters, so businesses should not assume eligibility simply because they consider themselves part of the hospitality or leisure industry.

Supporting Small Businesses After Revaluation

The 2026 revaluation may produce a sizeable increase for some businesses, particularly where the rateable value has risen or where a previous relief is being reduced.

Supporting Small Business Relief is designed to limit some of these sudden increases.

For 2026/27, qualifying bill increases can be restricted according to the property’s rateable value.

Rateable Value	2026/27 Increase Cap
Up To £20,000, Or £28,000 In London	5%
£20,001 To £100,000, Or £28,001 To £100,000 In London	15%
Above £100,000	30%

A minimum cash increase can also apply under the scheme. This type of transitional support is important for cash-flow planning. A business may receive a higher new valuation but not necessarily face the entire increase immediately.

New Reliefs Businesses Should Know About

Two 2026 relief areas are particularly relevant to specific sectors.

Pubs And Live Music Venues

Eligible pubs and live music venues can receive 15% business rates relief during 2026/27. For operators working with tight margins, this can reduce a meaningful part of annual premises costs.

Businesses should check whether the property itself meets the eligibility criteria rather than relying only on the type of company operating from it.

Electric Vehicle Charging Properties

Eligible separately assessed electric vehicle charging points and EV-only forecourts can receive 100% business rates relief through 31 March 2036.

This is particularly relevant to businesses considering investment in dedicated charging infrastructure or standalone EV charging locations.

What If The VOA Rateable Value Looks Wrong?

Businesses should review a valuation when there is a genuine reason to believe that the VOA has incorrect property information or that the assessment does not reflect comparable evidence.

Possible warning signs include:

• Incorrect Floor Area
• Wrong Property Use
• Missing Structural Changes
• Incorrect Parking Information
• Major Local Disruption
• Demolition Or Reconstruction
• Significant Differences From Genuine Comparable Properties

Businesses should build an evidence-based case rather than challenging simply because they would prefer a lower bill.

A valuation review can result in the rateable value being reduced, remaining unchanged or potentially increasing.

How The Check, Challenge And Appeal Process Works?

A business disputing its rateable value generally moves through three stages.

Check

First, check the information the VOA holds about the property.

If information such as size, layout or use is wrong, this is the stage where those details can be corrected.

Challenge

If the business still believes the resulting valuation is wrong, it can move to a Challenge.

The business should explain:

• Why The Existing Valuation Is Incorrect
• What Rateable Value It Believes Is Appropriate
• What Evidence Supports The Proposed Figure

Strong evidence could include relevant rental information or comparable properties.

Appeal

If the Challenge does not resolve the dispute, the business may be able to appeal to the Valuation Tribunal.

This is the more formal stage of the process and should generally be considered after the business has built a clear valuation case.

How Much Does A Business Rates Appeal Cost?

For appeals in England, the standard Valuation Tribunal fee is generally:

• £150 For A Smaller Proposer
• £300 For Other Proposers

The appeal normally needs to be lodged within four months of the VOA Challenge decision. Where the VOA has not responded to a Challenge within 18 months, separate appeal rights can arise.

Businesses should pay close attention to these deadlines because missing the relevant appeal window can affect their ability to take the case further.

Do You Still Pay Business Rates During An Appeal?

Yes.

Submitting a Check, Challenge or Appeal does not normally stop the existing rates bill.

Businesses should continue paying the amount demanded by the local council while the valuation dispute is being considered.

This is an important cash-flow point. A company should not treat a potential future reduction as money already saved.

If a valuation is eventually changed, the council can adjust the business rates liability based on the new assessment and its effective date.

England, Wales, Scotland And Northern Ireland Are Different

Although the term “VOA business rates” is widely searched across the UK, businesses should be careful about applying England-specific figures everywhere.

Location	Business Rates Position
England	Uses the 2026 five-multiplier structure covered in this article
Wales	VOA values properties, but Wales operates its own rates and relief arrangements
Scotland	Uses a separate non-domestic rates system
Northern Ireland	Uses a separate rating system administered through Land & Property Services

The 38.2p, 43.2p, 43.0p, 48.0p and 50.8p multipliers are England figures.

A business with premises in several UK nations should therefore check each property separately rather than using one national calculation.

When Should A Business Review Its Rates Position?

Business rates should not be something that is checked only when there is a dispute.

There are several useful points at which to review the position:

• Before Signing A Commercial Lease
• When Moving Premises
• After A Revaluation
• When A New Rates Bill Arrives
• After Significant Property Alterations
• When Business Use Changes
• When Opening A Second Location
• When Cash Flow Becomes Difficult
• When New Relief Schemes Are Introduced

For a growing company, these checks can form part of normal property and financial planning.

A Practical 2026 Business Rates Checklist

When reviewing a commercial property in 2026:

1. Check The Rateable Value: Confirm that the property’s 2026 VOA valuation looks reasonable.
2. Identify The Correct Multiplier: Check whether the property falls under the small business, standard, RHL or high-value rate.
3. Estimate The Basic Liability: Multiply the rateable value by the applicable multiplier.
4. Check Available Reliefs: Look beyond Small Business Rate Relief and consider transitional, sector-specific and local support.
5. Review The Council Bill: Make sure the figures and reliefs shown on the bill match your understanding.
6. Check Property Information: Incorrect floor space, property use or other details can affect the assessment.
7. Challenge Only With Evidence: Comparable rental or property evidence is more useful than simply arguing that the bill feels too high.
8. Keep Paying During A Dispute: A pending challenge does not usually suspend payment obligations.

Final Thoughts

VOA business rates are an important part of the cost of occupying commercial premises, and the 2026 changes make it particularly important for businesses to review their position.

Rather than looking only at the final council bill, check the rateable value, applicable multiplier and available reliefs separately. Businesses considering new premises should also investigate the VOA valuation before committing to a lease.

A few minutes spent checking these figures can improve budgeting, highlight missed relief and identify valuation problems before they become an expensive long-term issue.

Frequently Asked Questions

What Is The VOA In Business Rates?

The Valuation Office Agency assesses the rateable value of qualifying non-domestic properties in England and Wales. Local councils then use the valuation when calculating business rates bills.

What Are The 2026 Business Rates Multipliers?

England has five multipliers for 2026/27: 38.2p, 43.2p, 43.0p, 48.0p and 50.8p. The applicable figure depends on property value and whether it qualifies as retail, hospitality or leisure.

Is Rateable Value The Same As Business Rent?

No. Rateable value is an assessment of the property’s rental value for business rates purposes. It does not necessarily match the rent currently being paid to a landlord.

Can A Business Check A Property Before Renting It?

Yes. Checking the VOA valuation before agreeing to a commercial lease can help the business estimate the additional property costs it may face.

Can Business Rates Be Reduced?

Potentially. Reliefs are available for qualifying small businesses, charities, rural businesses, certain RHL properties, transitional cases and several other circumstances.

Can A Business Challenge Its Rateable Value?

Yes. If the business believes the VOA valuation is incorrect, it can use the Check, Challenge and Appeal system. Evidence should support the proposed change.

Do Business Rates Still Have To Be Paid During A Challenge?

Yes. Businesses should normally continue paying the council bill while a VOA valuation dispute or appeal is ongoing.

Does The VOA Collect Business Rates?

No. The VOA mainly deals with property valuations. Local councils issue and collect business rates bills.