If your business occupies commercial premises in England, the business rates revaluation that took effect on 1 April 2026 may have changed what you owe your local council. Rateable values have been reassessed to reflect rental market conditions as they stood on 1 April 2024, so your bill may have gone up, stayed broadly the same, or fallen depending on your property, location, sector and any reliefs that apply.
This guide explains how the 2026 revaluation works, how your bill is calculated, what support may be available, and what to do if you think your new rateable value is wrong.
What Is a Business Rates Revaluation and Why Does It Matter?
Business rates are charged on most non-domestic properties, including shops, offices, warehouses, factories and other commercial premises. Local councils collect business rates, and your bill is based on the rateable value of your property.
A rateable value is not the amount you pay. It is the Valuation Office Agency’s estimate of the yearly rent your property could have achieved on the open market at a set valuation date.
The Valuation Office Agency sets and maintains rateable values in England and Wales. Scotland and Northern Ireland have separate rating systems.
The 2026 revaluation follows the 2023 revaluation and reflects the move to more frequent 3-yearly revaluations. This means rateable values should be updated more regularly to reflect changes in the commercial property market.
Our post on how the autumn budget affects businesses covers the wider set of fiscal changes that have affected business costs recently, of which business rates is one significant element.
Need Help With Your Accounts Or Tax?
Whether you need support with self assessment, VAT returns, payroll, bookkeeping, CIS, company accounts or corporation tax, Asmat & Co Accountants can provide clear, practical advice for your business or personal finances.
How the 2026 Revaluation Works
The 2026 revaluation uses 1 April 2024 as the valuation date. This means the new rateable values are based on commercial rental values at that point, not on today’s rent or what you personally pay your landlord.
This matters because different parts of the property market moved in different directions between the 2023 and 2026 rating lists. Some industrial and logistics properties saw strong rental demand, while some secondary office and high street retail locations faced more pressure from hybrid working, online retail and changing occupier demand.
The revaluation is designed to redistribute the business rates burden more fairly across sectors and regions. It does not mean every business pays more. If rental values in your sector or area have risen, your rateable value may have increased. If they have fallen, your rateable value may have reduced.
Our post on hybrid work models and the commercial landscape gives context on how changing working patterns have affected commercial property demand and, by extension, rateable values.
How Your Business Rates Bill Is Calculated
Your annual business rates bill starts with your property’s rateable value. Your council then applies the relevant multiplier and deducts any reliefs you are entitled to.
From 1 April 2026 to 31 March 2027, England has 5 national business rates multipliers, except for special arrangements that can apply in the City of London.
| Multiplier | 2026/27 Rate | Applies To |
|---|---|---|
| Small business multiplier | 43.2p | Occupied properties with rateable value below £51,000, unless another multiplier applies |
| Standard multiplier | 48.0p | Most occupied properties not qualifying for a lower multiplier |
| Small business retail, hospitality and leisure multiplier | 38.2p | Qualifying RHL properties with rateable value below £51,000 |
| Standard retail, hospitality and leisure multiplier | 43.0p | Qualifying RHL properties with rateable value from £51,000 to below £500,000 |
| High-value multiplier | 50.8p | Properties with rateable value of £500,000 or more |
For example, a property with a rateable value of £20,000 using the small business multiplier of 43.2p would have a base annual bill of £8,640 before any reliefs are applied.
If your property has a rateable value below £51,000, your bill will usually be calculated using the small business multiplier even if you do not qualify for Small Business Rate Relief.
Our post on financial data analytics and better business decisions is relevant for businesses building accurate cost models, where business rates can be a significant overhead.
Which Reliefs and Reductions May Be Available?
Several reliefs may reduce your bill, but eligibility depends on your property, business use and local council application process.
| Relief or Reduction | Main Eligibility Point | Possible Reduction |
|---|---|---|
| Small Business Rate Relief | Usually available where your property’s rateable value is below £15,000 and it is your only business property | 100% relief up to £12,000, then tapered relief from £12,001 to £15,000 |
| Supporting Small Business Relief | May apply if you lost some or all Small Business Rate Relief due to the 2026 revaluation | Limits the immediate impact of losing relief |
| Retail, Hospitality and Leisure multipliers | Qualifying RHL properties below £500,000 RV | Lower multiplier rather than the previous percentage discount scheme |
| Empty property relief | Property is genuinely empty | Usually no rates for 3 months, or 6 months for certain industrial premises |
| Charitable or CASC relief | Property used mainly for charitable or community amateur sports club purposes | 80% mandatory relief, with possible discretionary top-up |
| Rural rate relief | Certain qualifying businesses in rural settlements with fewer than 3,000 people | Up to 100% in qualifying cases |
| Hardship relief | Businesses facing genuine financial difficulty | Discretionary council support |
The old Retail, Hospitality and Leisure percentage discount scheme ended on 31 March 2026. From April 2026, qualifying retail, hospitality and leisure properties benefit through the new lower RHL multipliers instead.
Our post on the minimum living wage and rising business costs gives broader context on the cost pressures facing small businesses in 2026.
Who Is Most Likely to See Rates Rise?
Businesses most likely to see higher bills are those occupying premises in areas where market rents increased by the 1 April 2024 valuation date. This may include some industrial, warehouse and logistics premises, particularly where demand remained strong.
Businesses in buoyant office or retail locations may also see increases if comparable rental values strengthened between the 2023 and 2026 rating lists.
However, the effect is property-specific. Two businesses in the same sector may see different outcomes depending on location, property size, lease evidence and local rental trends.
Who Could See Their Rates Fall?
Some businesses may see lower or broadly unchanged rateable values. This may include occupiers in weaker town centre retail locations, secondary office markets affected by hybrid working, or areas where rental evidence did not support an increase.
Hospitality businesses may see different outcomes depending on the local market. Some areas recovered strongly, while others continued to face pressure from costs, staffing challenges and changing consumer behaviour.
Transitional Relief and Supporting Small Business Relief
Where a revaluation causes a large increase, transitional relief may limit how quickly your bill rises. This is normally applied automatically by your council if you qualify.
If you lost some or all of your Small Business Rate Relief because of the 2026 revaluation, Supporting Small Business Relief may also help limit the immediate increase in your bill.
You should check your 2026/27 bill carefully to make sure any relevant reliefs have been applied correctly.
How to Check Your New Rateable Value
You can check your new rateable value using the Valuation Office Agency’s business rates valuation service. Your local council should also have issued a bill showing your rateable value, multiplier, reliefs and instalments.
When reviewing your bill, check:
- Whether the property details are correct
- Whether the floor area and use match your premises
- Whether the correct multiplier has been applied
- Whether Small Business Rate Relief or another relief should apply
- Whether comparable properties nearby have similar valuations
Our post on setting up a limited company in the UK is relevant for businesses that are newly taking on premises and need to understand their rates obligations from the start.
How to Challenge a Rateable Value
If you believe your rateable value is wrong, the process in England is called Check, Challenge, Appeal.
The Check stage confirms or corrects the factual details the Valuation Office Agency holds about your property. The Challenge stage is where you explain why you believe the valuation is wrong and provide evidence. If the matter is still unresolved, you may be able to appeal to the Valuation Tribunal.
This process can take time, so it is sensible to act promptly if your bill looks wrong. You may also wish to speak to a rating surveyor if the valuation issue is complex.
Our post on HMRC enquiries and how an accountant supports you gives a flavour of how professional support helps when dealing with formal disputes, although the VOA process is separate from HMRC tax enquiries.
Business Rates and Your Financial Planning
For many businesses, business rates are one of the largest fixed costs after rent and payroll. If your bill has increased from April 2026, updating your forecasts is important.
Our post on cash flow forecasting for small businesses covers how to build cost projections that include fixed overheads such as business rates.
Regular financial reports should include your rates liability as a properly accounted overhead. If your rates have changed and your accountant is not aware, your management accounts may understate your fixed costs.
Our post on virtual CFO services and why they are in demand explains how strategic financial oversight can help businesses manage fixed cost changes.
If you run a property portfolio or are a commercial landlord, business rates obligations can also arise during empty periods. Our post on landlord accounting and our post on how to set up a buy-to-let company cover the broader financial picture for property investors.
The Bigger Picture: Rising Business Costs in 2026
Business rates do not sit in isolation. Many employers are also dealing with higher wage costs, employer National Insurance changes from April 2025, rent increases and energy costs. Our post on national insurance contributions covers the NI side of the cost picture.
Understanding your full overhead position helps you make better decisions about pricing, staffing, premises and growth. Our post on what an accountant does for an SME explains how good accounting support can help you manage these moving parts in a more organised way.
Our post on how online accountants use management reports covers how regular reporting keeps you on top of cost trends, including fixed costs like rates, throughout the year.
How Asmat & Co Accountants Can Help
As experienced accountants for small businesses in Slough and across Berkshire, Asmat & Co Accountants help business owners understand their full cost picture and plan effectively.
While business rates valuations are set by the VOA and challenges are handled through the rating system, we help make sure your rates costs are properly reflected in your company accounts, bookkeeping, budgets and financial reports.
Business rates are normally an allowable deduction when calculating taxable business profits, provided they relate to premises used for the business. Our limited company accountants service covers company financial management, and our tax return service helps sole traders and self-employed individuals record allowable business costs correctly.
We serve clients from our Slough office and our accountants in Reading office, covering businesses across Berkshire and the surrounding area.
Our post on choosing the right accountant covers what to look for in professional accounting support. And our post on the benefits of hiring an online accountant explains what good support looks like for small business owners managing costs like business rates alongside other obligations.
Frequently Asked Questions
My rates bill has gone up significantly from April 2026. What should I do first?
Check your new rateable value, confirm your property details are accurate, compare similar properties nearby, and make sure any reliefs you qualify for have been applied. If the valuation looks wrong, begin the Check stage with the VOA.
Does the revaluation affect when my rates are due?
No. Business rates bills are usually payable over 10 monthly instalments from April, although you can ask your council to spread payments over 12 months.
I work from home as a sole trader. Do business rates apply to me?
Usually not if the space is also used domestically. Business rates may apply if part of your home is used exclusively for business or has been structurally adapted for business use.
I rent my commercial premises. Is business rates the landlord’s responsibility or mine?
In most commercial leases, the occupier pays business rates. Check your lease to confirm your position.
Are business rates deductible against taxable profit?
Yes. Business rates paid on commercial premises used for your business are normally an allowable business expense.
Make Sure Your Rates Costs Are Working in Your Favour
The 2026 revaluation is already in effect. If your rates have increased, now is the time to check your valuation, review your reliefs and update your forecasts.
Contact Asmat and Co today and let us make sure your complete cost picture is correctly reflected in your accounts and financial planning for 2026.
Need Help With Your Accounts Or Tax?
Whether you need support with self assessment, VAT returns, payroll, bookkeeping, CIS, company accounts or corporation tax, Asmat & Co Accountants can provide clear, practical advice for your business or personal finances.
