BUSINESS RATE EXPLAINED
The Valuation Office Agency (VOA), in partnership with the Office of the Deputy Prime Minister (ODPM) have developed the website http://www.mybusinessrates.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.
What are Non-Domestic Rates or Business Rates?
The non-domestic rates, or business rates, collected by local councils are the means by which businesses and others who occupy non-domestic property make a contribution towards the cost of local services. Except in the City of London where special arrangements apply, the rates are pooled by Central Government and redistributed to local councils according to the number of people living in the area. This money, together with revenue from council taxpayers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by your local council and other local authorities in your area.
Why is it a National Tax?
This is because the rate is determined by Central Government, not Local Government. Under the Local Government Finance Act 1988, local District Councils or Metropolitan Borough Councils (known as Billing Authorities) no longer have any say in the amount of rates to be charged and are merely required to collect business rates due in England and pay the money to Central Government. This change came into force on 1st April 1990 and bought to an end the power which local authorities had to levy General Rates, which can be traced back to 1601.
When will the government receive the rate income?
The Council is required to make contributions to the Government’s National Pool starting in April each year irrespective of whether or not the Council has actually collected the amounts due from ratepayers.
Does this council receive any direct benefit from Business Rates-Payers in Horsham?
No. The benefit is only indirect. This is because all Billing Authorities pay their contributions into the Government’s National Pool, which is then redistributed, back to the Councils based on their population.
What about other services provided in the District?
Not all the services in the District are administered by Horsham District Council. Services such as Education, Fire Brigade, Social Services, Roads and Street Lighting etc. are functions of West Sussex County Council and Sussex Police Authority are responsible for Policing.
Who is liable to pay the Business Rates?
Where a non-domestic property i.e. Offices, Shops, Factories, Warehouse etc., has a Rateable Value shown in the Valuation Officers Rating List, then a rate bill must be issued against the ratepayer who is in occupation of the property. Actual occupation is the key to liability for non-domestic rates. Ownership of a legal title to the land or property is not necessary, although the occupier must have beneficial and exclusive use of the property.
Unoccupied Property Rating
In general, there will be no business rates to pay for the first three months that a property is empty. After that, an empty property rate of 50 per cent of the bill that would have been due on the occupied property will be payable. Industrial buildings, listed buildings and small properties with rateable values of less than £1900, pay no empty property rates even after the first three months have expired.
If you wish to discuss any of the matters mentioned in this section, please contact the National Non-Domestic Rating Department on (01403) 215330/1.
Horsham District Council
Park House, North Street
Horsham, West Sussex
RH12 1RL
Tel: (01403) 215330/1
Email : revenues@horsham.gov.uk