The Multiplier

The multiplier – also sometimes referred to as the Uniform Business Rate (UBR) – is a key factor in the calculation of your rates bill. It is set annually by central government and determines the percentage (expressed as pence in the pound) of the rateable value of your property that you will pay in business rates. For example, in 2005/06 the standard multiplier is 42.2p. If the rateable value of your property was £15,000, you would multiply it by 42.2p to get a total for the year of £6,330. If you are entitled to any transitional arrangements or reliefs, this sum is then adjusted to reflect them, making a final total for your rates bill. The multiplier usually changes each year in line with inflation.

 

From 1 April 2005, there will be two multipliers.  The small business multiplier, applicable to those businesses eligible for Small Business Rate Relief is set at 41.5p.  The standard multiplier, which includes the supplement to pay for Small Business Rate Relief, is set at 42.2p.