Skip to main content What are business rates?
Definition of business rates
Business rates are what businesses pay on their offices and factories instead of council tax.
If you have a small business, you may be entitled to small business rate relief to reduce how much you have to pay for business rates.
Business rate changes from 1st April 2026
The business rates multiplier - the figure used to calculate the amount of business rates a non-domestic property owner must pay - changed on 1st April 2026.
Here are the updated rates for England, Scotland and Wales. In Northern Ireland, rates vary by council area. The Northern Irish Executive has confirmed an increase of 3% for non-domestic properties.
Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.
Frequently Asked Questions
I work from home, do I have to pay business rates instead of (or as well as) council tax?
That depends on what your business does and what work you carry out at home. Visit the HMRC website for more information on whether or not your business is eligible for business rates.