Business rates on rented small unit

This is a common question and the answer depends on a few things, so let me walk through the key points.

Who is liable for business rates:

Business rates (formally known as non-domestic rates) are payable by the "ratepayer," which is the person or company in occupation of the property. If you are renting a small unit and you are the occupier, then in most cases you will be the person liable for business rates, not the landlord. This is the default position under the Local Government Finance Act 1988.

However, the position can be affected by the terms of your lease. In some cases, particularly with serviced offices or short-term licences, the landlord may remain the ratepayer and include the cost within the rent or a service charge. So the first thing to check is what your lease or licence agreement says about who is responsible for rates.

Small business rate relief:

Even if you are liable, you may not actually have to pay much or anything at all. Small business rate relief is available if the rateable value of your property is below a certain threshold.

1. If the rateable value is £12,000 or below, you are entitled to 100 per cent relief, meaning you pay nothing.
2. If the rateable value is between £12,001 and £15,000, you receive tapered relief on a sliding scale.
3. You must occupy only one business property, or your additional properties must each have a rateable value below £2,900 with the total rateable value of all properties not exceeding £19,999 (although exact rules on multiple properties can be nuanced).

You do not usually need to apply for this relief in England as it should be applied automatically by the local authority, but it is worth checking your bill to make sure it has been applied.

Rateable value:

The rateable value of your unit is set by the Valuation Office Agency and can be checked on the GOV.UK website. This is the figure used to calculate how much you owe before any reliefs are applied.

Practical steps:

1. Check your lease or licence to confirm who is responsible for business rates.
2. Look up the rateable value of the unit on the VOA website.
3. Check whether small business rate relief has been applied to your bill.
4. If you think the rateable value is wrong, you can challenge it through the VOA's Check, Challenge, Appeal process, though this can take time.
5. If you are a charity or a community amateur sports club, separate mandatory and discretionary reliefs may also be available.

If you can tell me the rateable value of the unit and whether you occupy any other business premises, I can give you a clearer picture of what you are likely to owe.