Find out who pays Business Rates, what properties count as non-domestic, and how Business Rates are calculated.
Business Rates, also known as Non-Domestic Rates, are a local property tax that is paid by the occupiers of all commercial (non-domestic) property (in the same way that council tax is a tax on domestic properties). It is collected by local authorities and is how non-domestic ratepayers contribute towards the cost of local services.
For more information regarding Business Rates, please visit the GOV.UK website.
Who pays Business Rates
The person or company who actually occupies a non-domestic property usually pays the rates. Often this will also be the owner or leaseholder of the property. If a property is empty, the owner or leaseholder will have to pay.
What properties count as non-domestic?
Any property that is not intended for use as somebody’s residence will be liable for Non-Domestic Rates.
Business rates are charged on most non-domestic properties, like:
- Shops
- Offices
- Pubs
- Warehouses
- Factories
- Self-contained holiday lets
- Beach huts
- Car parking spaces
For more details, visit GOV.UK.
How Business Rates are worked out
The local authority works out the annual Business Rates payable by multiplying the rateable value of the property given by the Valuation Office Agency, by the appropriate multiplier set by the Government each year.
For example, for an office with a Rateable Value of £24,000, the annual rates payable would be £10,368.00 for the current 2026/27 financial year.
Calculation: 24,000 x 0.432 x 365/365 = £10,368.00
Any reliefs/discounts would then be applied on top of this, and rates would be payable in monthly instalments.
Rateable Value
The Valuation Office Agency (VOA) maintains the Non-Domestic Rating List and sets Rateable Values for each non-domestic property.
A property's rateable value is an assessment of the annual rent the property would cost to rent if it were available to let on the open market at a fixed valuation date.
For more information, visit GOV.UK.
Dispute your Rateable Value
If you disagree with your rateable value, you must contact the Valuation Office Agency directly. They have introduced a 'Check, Challenge, Appeal' process to make it easier to appeal their decision.
Colchester City Council cannot initiate this process and will only be notified of the outcome once resolved.
What are multipliers?
Since 1 April 2005, there were two multipliers (tax rates): the standard non-domestic rating multiplier and the small business non-domestic rating multiplier.
At the Autumn Budget 2024, the Government announced its intention to introduce permanently lower business rates multipliers for retail, hospitality, and leisure properties (RHL hereditaments) with rateable values under £500,000 from 2026/27.
As a result, from 1 April 2026 there are five multipliers: the standard non-domestic rating multiplier, the small business non- domestic rating multiplier, the small business retail, hospitality & leisure multiplier, the standard retail, hospitality & leisure multiplier and the high value multiplier.
For 2026/27, any ratepayer not receiving Transitional Relief or Supporting Small Business Relief will have their rates multiplier increased by a Transitional Relief Supplement of 1p.
The Government sets the multipliers for each financial year for the whole of England.
| Multiplier | 2025/26 | 2026/27 | Scope |
| Small Business Multiplier | 49.9p | 43.2p | Empty and Non-RHL hereditaments with rateable values under 51,000 |
| Standard Multiplier | 55.5p | 48.0p | Empty and Non-RHL hereditaments with rateable values between 51,000 and 499,999 |
| Small business Retail, Hospitality and Leisure Multiplier | N/A | 38.2p | Occupied RHL hereditaments with rateable values under 51,000 |
| Standard Retail, Hospitality and Leisure Multiplier | N/A | 43.0p | Occupied RHL hereditaments with rateable values between 51,000 and 499,999 |
| High Value Multiplier | N/A | 50.8p | All hereditaments with rateable values of 500,000 or above |
Local Councils are responsible for deciding which businesses qualify for the Retail, Hospitality and Leisure multipliers in line with the Government Guidance.
If you think that the wrong multiplier has been used on your 2026/27 Rate Demand then please contact the Business Rate team at business.rates@colchester.gov.uk.