Page last updated at 10:50 GMT, Tuesday, March 13 2012

Business Rates

Business Rates are payable by the occupier of retail units, offices, factories, warehouses, stores and land used for storage.  Farm land and buildings, churches, sewers, public parks, certain property used for the disabled, property in an enterprise zone and moveable moorings are not rateable.
 
Unless the property is exempt from rates, all commercial properties have a Rateable Value.  Broadly speaking, the current Rateable Value from 1 April 2010 represents the annual rent the property could have been let for on the open market in 2008.  It is assessed by the Valuation Office.
 
Valuation Office 
The Valuation Office is an Executive Agency of the Inland Revenue.  It carries out valuations for non-domestic (business) rating purposes, and banding for council tax on behalf of the Office of the Deputy Prime Minister.
The Council calculates the bill by multiplying the rateable value by the 'poundage' better known as the 'uniform business rate'.  This amount is fixed each year by the Government.  A scheme for 'phasing in' reductions and increases of business rates is in place.  This scheme is complex and details may be obtained on request.  The rates bill is payable by monthly instalments which are due by the 6th of each month

The Valuation Office Agency (VOA), in partnership with the Office of the Deputy Prime Minister (ODPM), has developed a new website, http://www.businesslink.gov.uk/
 
This site is designed to bring together all the information on business rates that ratepayers might want, in one place, in an easily accessible format and in jargon-free, everyday language.

2012/2013 Deferral Scheme

The Government has decided to put in place a business rates deferral scheme which will give you the option of spreading the Retail Price Index increase in your 2012/2013 bill over three years, to help businesses manage their cash flow during the downturn.  You will be able to defer payment of 3.2% of your 2012/2013 bill until 2013/2014 and 2014/2015. This equates to 60% of the Retail Price Index increase.  You will then pay back the total amount deferred over the next two years.

Further information about the scheme can be found here.  

If you wish to opt into the scheme, please fill out the application form.  The form simply asks for your name, the address of the property and its reference number (which can be found on your business rate bill).  Just complete those details, sign the form and return it to the Revenue & Benefits Unit.  If you occupy more than one property in the Eastleigh area, you only have to return one application detailing all of the properties.

You can apply at any time until 31 March 2013 provided you have some of your bill left to pay. We would encourage you to apply early so that you see the reduction in your monthly instalments sooner. However, you will be able to defer 3.2% of the whole year’s bill regardless of when you apply provided the balance outstanding is at least 3.2% of the original bill.

The scheme will come into affect during July when the full details will be known. If you have any queries please do not hesitate to contact the Business Rates Team on 02380 688076.

Balances and Payments

Where and How to Pay 

• Online Business Rates Payment
• Set up a Direct Debit online
• Download a Direct Debit Form
• Check Your Outstanding Balance
• Eastleigh Area Office, Unit 2, Wells Place
• At your bank or building society
• By standing order, credit / debit card or direct debit

If the payment method is direct debit, the payment dates that are available are the 7th or 21st of each month.  Late payment may affect interest payable on overpayments following reductions in rateable values.  A 2% charge is payable for payments made by credit card.

Rating Multipliers

Rating Multipliers for 2012/2013
Standard Multiplier = £0.458

Small Business Rate Multiplier = £0.450

Empty Properties
 If the property is empty, no rates are payable for three months. This is applicable from when the property first became unoccupied. After the three month period, 100% of the charge becomes payable. Properties that are classed as industrial are entitled to six months exemption while empty.  Properties with a Rateable Value of under £2600 are also exempt while empty.  Other types of properties are also exempt from empty rate charge. A full list is available on request. Properties must be occupied for a period of 6 weeks before the exemption is applicable again.

Charities
Registered charities are entitled to an 80% reduction.  The Council also has the discretion to reduce the bill further depending on the policies of individual Councils for granting reliefs.
If you would like further information regarding charitable rate relief or would like an application form please contact us at the address below.

• Charitable rate relief application form  pdf  (Please note that the application form must be printed before completion and returned to the Revenue & Benefits Department.)

Community Sports Clubs
Community sports clubs may also qualify for charitable rate relief provided membership is open to all sections of the Community (membership fees may be charged).  The organisation must promote community participation in healthy recreation or the advancement of the physical education of young people not undergoing formal education.

Small Business Rate Relief

This relief was introduced by the Government in 2005 to ease the rates burden for small businesses. Applications can be obtained from the Local Authority and the business must occupy either:

(a) one property or,

(b) one main property and other additional properties providing those additional properties each have a rateable value of less than £2,600.

The Rateable Value of the property mentioned in (a), or the aggregate Rateable Value of all properties mentioned in (b), must be under £18,000 on 1 April each year.

Ratepayers who meet the above conditions will have their rates for single (a) or main property (b) calculated using the small business non-domestic rating multiplier.  In addition, businesses with a Rateable Value of £6000 - £12,000 or less will receive a percentage reduction of up to 99%.  Properties with a Rateable Value of £5999 or less, will receive a reduction of 100%.

Provided the ratepayer’s circumstances remain unchanged, the relief will remain in place up to 31 March 2015.

If you have any queries or wish to apply for Small Business Rate Relief please contact the Business Rates department on 02380 688076 for an application form.

Enquiries regarding non-domestic rates can be directed to: 
 The Rating Officer, Eastleigh Borough Council Civic Offices, Leigh Road, Eastleigh, SO50 9YN
 Telephone: 023 8068 8076   Email revbens@eastleigh.gov.uk

• Use our online form to make a general Business Rates enquiry

Appeals regarding the rateable value should be made to: 
 The Valuation Officer Overline House, Blechynden Terrace, Southampton
Telephone: 03000 501501

The National Non-Domestic Rating system was introduced in 1990.  Revaluations are subject to review every 5 years and the non-domestic properties have been revalued with effect from 1 April 1995, 1 April 2000, 1 April 2005 and 1 April 2010.  The next review will be in 2015.
 
The income from non-domestic rates is collected by the Council on the Government's behalf and paid into a national pool.  The monies are then redistributed between authorities by the Government and is based on authorities' adult population.  Areas which have few businesses or where property values are generally low are therefore not disadvantaged.