Business rates

Also called Non-domestic rates, NNDR

A property tax on most commercial premises, based on a valuation set centrally and collected by the council.

What it means

Business rates are charged on most non-domestic properties. The bill is based on the property's rateable value — an estimate of its open-market annual rent at a set valuation date — multiplied by a national multiplier, less any reliefs.

Why it matters

It is often the second-largest fixed cost after rent, and it is one of the few large costs that arrives whether or not the premises are occupied or trading.

Small Business Rate Relief means many small premises pay nothing at all — but it is not always applied automatically, and businesses have gone years paying bills they did not owe.

What it looks like in practice

Check your rateable value on the Valuation Office Agency website. If it looks wrong, you can challenge it through the Check, Challenge, Appeal process.

Apply for Small Business Rate Relief through your local council if you occupy one main property below the threshold. Other reliefs exist for retail, hospitality, charities and rural businesses.

What to watch out for

Unsolicited "rates reduction" agents on contingent fees. Some are legitimate; many charge for something you could do free, and a few have taken fees for challenges never filed.

Working from home does not usually trigger rates, but a substantially converted or separately accessed part of a property can.

Where to get proper advice

Your local council for reliefs and billing, the VOA for valuations, and a RICS-regulated surveyor if you are genuinely appealing.