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Non-Domestic Rates
Non-Domestic Rates, or business rates, collected by
local authorities are the way that those who occupy
non-domestic property contribute towards the cost of
local services.
Rateable Value
Apart from properties that are exempt from business
rates, each non-domestic property has a rateable value
which is set by the valuation officers of the Valuation
Office Agency (VOA) - an agency of Her Majesty's
Revenue and Customs - who draw up and maintain a
full list of all rateable values, available on their website at
The ratepayer can appeal against the value shown in the
list if they believe it is wrong. Further information about
the grounds of appeals and the process for doing so can
be found on the VOA website or from contacting
Merton’s Business Rates team on 020 545 3751.
National Non-Domestic Rating Multiplier
The local authority works out the business rates bill by
multiplying the rateable value of the property by the
appropriate multiplier. There are two multipliers; the
standard non-domestic rating multiplier and the small
business non-domestic rating multiplier. The former is
higher to pay for small business rate relief.
Between revaluations the multipliers change each year
in line with inflation and to take account of the cost of
small business rate relief.
Unoccupied Property Rating
Business rates will not be payable in the first three
months that a property is empty. This is extended to six
months in the case of certain industrial properties. After
this period rates are payable in full.
The Government is introducing a new temporary
measure for unoccupied new builds from October 2013.
Unoccupied new builds will be exempt from unoccupied
property rates for up to 18 months (up to state aid limits)
where the property comes on to the list between 1
October 2013 and 30 September 2016. The 18 month
period includes the initial 3 or 6 month exemption and
so properties may, if unoccupied, be exempt from non-
domestic rates for up to an extra 15 or 12 months.
Small Business Rate Relief
Ratepayers who are not entitled to another mandatory
relief, or, are liable for unoccupied property rates and
occupy a property with a rateable value which does not
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National Non-domestic Business Rates
exceed £25,499, will have their bill calculated using the
lower small business non-domestic rating multiplier,
rather than the national non-domestic rating multiplier.
In addition, if a property has a rateable value which does
not exceed £12,000, the ratepayer will receive a
percentage reduction in their rates bill for this property of
up to a maximum of 50% for a property with a rateable
value of not more than £6,000. However, until 31 March
2014 the Government has doubled the usual level of relief.
This reduction (relief) is only available to ratepayers who
occupy either;
(a) one property, or
(b) one main property and other additional properties
providing those additional properties each have a
rateable value which does not exceed £2,599.
An application for Small Business Rate Relief is not
required. Where a ratepayer meets the eligibility criteria
and has not received the relief, contact Merton’s
Business Rates team on 020 545 3751. Provided the
ratepayer continues to satisfy the conditions for relief
they will automatically continue to receive relief in each
new valuation period.
Changes in circumstances which should be notified to
Merton’s Business Rates team by a ratepayer in receipt
of relief are:
(a) the ratepayer taking up occupation of an additional
property, and
(b) an increase in the rateable value of a property
occupied by the ratepayer in an area other than in
the Merton borough.
Hardship Relief
Local authorities have the discretion to give hardship relief
in specific circumstances. Full details can be obtained at
Direct Debit
You can pay your business rates by direct debit – to
arrange this please ring 020 545 3751
E-bills
You can register to receive your business rates bills
electronically – to arrange this please register at
Please contact the Business Rates team on
020 545 3751 or via business
for assistance with your business rates.