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:
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The standard multiplier (46.2 pence) is higher to pay for small business rate relief;
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The small business multiplier (45.8 pence).
The multipliers for the 2007/8 financial year were 44.4 pence and 44.1 pence respectively.
These multiplier are set by Central Government and normally change every year in line with inflation.
Transitional Arrangements
Property Values normally change a good deal during each revaluation. Transitional arrangements help to phase in the effects of those changes by limiting the increases in bills. To help pay for this there also have to be limits on reductions in bills.
Under the transition scheme, limits continue to apply to yearly increases and decreases until the full amount payable is due (rateable value times the appropriate multiplier).
The transitional arrangement scheme for the 2005 revaluation will operate over a four year period from 1st April 2005.
Any transition is automatically calculated by Gateshead Council and will be shown on your bill.
Further information about transitional arrangements can be obtained from Gateshead Council or My Business Rates website.