Business Rates
The Business Rates, sometimes referred to as National Non-Domestic Rates (NNDR), collected by Pendle Borough Council are the way businesses, and others who occupy a non-domestic property, such as shops, offices, pubs and factories, contribute towards the cost of local services.
Who is responsible for paying business rates?
Generally, the occupier of the property is liable to pay the business rate charge.
If the property is empty and not an exempt property, then liability is that of the person entitled to possession, usually the owner or leaseholder.
As the legislation states that the occupier is the liable party, tenants paying rate inclusive rent should take care. If the landlord does not pay the rates to the council, then the tenant will be held liable and may need to take action against the landlord to recover monies paid.
Agreements between landlords and their tenants are a matter between themselves and are not binding on a local (or billing) authority in the event of any dispute between those parties.
Other factors may be taken into account if it is not clear who the liable person should be, based on the above rules. For example, with services, accommodation and premises rated as one property but occupied by numerous persons.
How are my business rates calculated?
Business rates are based on your property's rateable value. The Valuation Office Agency (VOA) maintains the Non-Domestic Rating List. This includes setting the rateable values of business properties. To understand why your property has a certain rateable value, visit GOV.UK - How your rates are calculated.
The Business Rate is the rateable value of the property times a 'multiplier' that is set each year by the government. The multiplier is the number of pence per pound of your rateable value you'll have to pay in business rates.
From the 01 April 1997 to the 31 March 2025, there were two national multipliers;
- Small business multiplier - businesses with rateable values between £15,001 and £50,999
- Standard Multiplier - businesses with a rateable value over £51,000
From the 1 April 2026 central government has introduced five multipliers which are to be used to calculate how much a business will need to pay for the financial year:-
- Small business RHL multiplier for qualifying retail, hospitality and leisure businesses who occupy a property with a rateable value under £51,000.
- Small business multiplier for businesses that are liable for a property with a rateable value under £51,000 and do not qualify for the RHL multiplier.
- Standard RHL multiplier for qualifying retail, hospitality and leisure businesses who occupy a property with a rateable value between £51,000 and £500,000.
- Standard multiplier for non-retail, hospitality and leisure businesses that are liable for a property with a rateable value between £51,000 and £500,000 and do not qualify for the RHL multiplier.
- High value multiplier for all properties that have a rateable value of £500,000 or above.
Some non-domestic properties are not rateable so no rates have to be paid for them, for example farm buildings, churches and public parks.
Some properties are 'composite properties', i.e. partly domestic and partly non-domestic, for example, a shop with living accommodation above. In these cases, business rates are payable for the non-domestic part and council tax is payable for the domestic accommodation.
Transitional Relief Supplement
A 1p supplement to the relevant tax rate (multiplier) for ratepayers who do not receive Transitional Relief or the Supporting Small Business scheme to partially fund Transitional Relief. This will apply for one year from 1 April 2026.
You can download a copy of our Business Rates explanatory notes.