VOA business rates affect the amount many organisations in England pay for occupying shops, offices, warehouses, factories and other non-domestic properties.
The amount due is normally based on the property’s rateable value, the relevant business-rates multiplier and any reliefs or adjustments applied by the local council.
Important changes took effect on 1 April 2026. New rateable values were introduced following the 2026 revaluation, and England moved from two main multipliers to five multipliers based on property value and whether the premises qualify as retail, hospitality or leisure property.
The organisation previously known as the Valuation Office Agency, or VOA, was also integrated into HM Revenue and Customs on 1 April 2026.
Its valuation work is now carried out by the Valuation Office within HMRC, although “VOA business rates” remains a commonly used search term.
This guide explains how business rates are calculated in 2026/27, which multipliers apply, what relief may be available and what a business can do when its property details or rateable value appear incorrect.
Last checked: 17 July 2026
Scope: This guide primarily covers business rates in England. Wales, Scotland and Northern Ireland operate separate non-domestic rating arrangements.
Disclaimer: This article provides general information and does not constitute tax, legal or professional valuation advice. Businesses should check their council bill and obtain qualified advice where necessary.
What Are VOA Business Rates?
VOA business rates, formally known as non-domestic rates, are a property tax charged on most commercial and non-domestic premises.
They can apply to shops, offices, pubs, restaurants, factories, warehouses and other properties used for business purposes.
The Valuation Office determines the property’s rateable value. The local council then uses that value, the applicable multiplier and any reliefs or supplements to calculate the final bill.
A property’s rateable value is not necessarily the rent currently paid by its occupier. It represents the estimated annual rent the property could have achieved on the open market on a specified valuation date.
Business rates may form a significant part of an organisation’s fixed costs. Understanding how business rates affect operating costs and property decisions can help a company assess whether to renew a lease, relocate, expand or reduce its premises.
Not every business property produces a full business-rates bill. Some premises are exempt, while eligible occupiers may receive Small Business Rate Relief, charitable relief, rural relief, empty-property relief, transitional relief or locally awarded discretionary support.
Is the VOA Still Responsible for Business Rates?
The Valuation Office Agency ceased to exist as a separate executive agency on 1 April 2026 when its functions were integrated into HMRC. Property valuation work is now undertaken by the Valuation Office within HMRC.
This organisational change did not remove business rates or transfer responsibility for issuing bills to HMRC.
The Valuation Office is responsible for maintaining rateable values, while local councils remain responsible for calculating bills, applying qualifying reliefs, collecting payments and dealing with payment difficulties.
Businesses may continue to see “VOA” used in older correspondence, online searches and references to valuation accounts. However, current government information may use the shortened name “Valuation Office” or “VO”.
The change of name does not by itself alter a property’s rateable value or create a new business-rates liability.
Businesses should still check that their property description, floor area, use and other valuation details are accurate. The VOA’s work was formally brought into HMRC on 1 April 2026.
How Are VOA Business Rates Calculated?
A business-rates bill normally begins with two pieces of information:
- The property’s rateable value
- The multiplier applying to that property
The basic calculation is:
Rateable value × applicable multiplier = initial business-rates liability
The council then applies any qualifying reliefs, transitional adjustments, supplements or exemptions before issuing the final bill.
Worked Example
Consider a non-retail property in England with a rateable value of £30,000. The 2026/27 small-business non-domestic multiplier is 43.2p:
£30,000 × 0.432 = £12,960
The initial annual liability would therefore be £12,960 before reliefs and other adjustments.
A qualifying retail, hospitality or leisure property with the same £30,000 rateable value would use the lower 38.2p multiplier:
£30,000 × 0.382 = £11,460
These examples are estimates rather than final bills. Businesses can use the government’s official business-rates calculation guidance and should compare the result with the figure issued by their local council.
What Are the Business Rates Multipliers for 2026/27?
England has five business-rates multipliers for the period from 1 April 2026 to 31 March 2027. The applicable multiplier depends on the property’s rateable value and whether it meets the conditions for a retail, hospitality or leisure multiplier.
| Property category | Rateable value | 2026/27 multiplier |
| Retail, hospitality and leisure | Below £51,000 | 38.2p |
| Other non-domestic property | Below £51,000 | 43.2p |
| Retail, hospitality and leisure | £51,000 to £499,999 | 43.0p |
| Other non-domestic property | £51,000 to £499,999 | 48.0p |
| All qualifying high-value properties | £500,000 or more | 50.8p |
A multiplier of 43.2p means that an initial charge of 43.2 pence is calculated for every £1 of rateable value before reliefs and other adjustments.
The table should not be described as a guaranteed indication of whether a bill will rise or fall. A business may have a higher rateable value but a lower multiplier, or it may qualify for transitional or other relief.
Properties in the City of London may also be affected by locally applicable arrangements, so occupiers should check the multiplier shown on their council bill.
The five national multipliers and their rateable-value bands were confirmed for 2026/27 by the government.
What Changed Under the 2026 Business Rates Revaluation?
The latest business-rates revaluation took effect in England and Wales on 1 April 2026. The new rateable values are generally based on the estimated open-market rental value of each property on 1 April 2024.
A revaluation is intended to reflect changes in the commercial property market.
It does not mean that every business receives the same percentage increase. Bills may increase, decrease or remain broadly similar depending on:
- How the local rental market has changed
- The new rateable value
- The multiplier applying to the property
- Whether the premises qualify for relief
- Whether transitional arrangements limit an increase
- Changes to the property’s size, use or occupation
A percentage increase in rateable value does not necessarily lead to the same percentage increase in the final bill.
Businesses should therefore avoid relying on generalised predictions such as “all properties over £100,000 will rise by 55%”.
The effect should be assessed using the property’s individual valuation and council bill.
The government’s official revaluation guidance confirms that the 2026 values took effect on 1 April 2026 and are based on open-market rental values from 1 April 2024.
Business owners should also consider the wider ways in which taxation affects a business, including its cash flow, pricing, investment decisions and ability to retain commercial premises.
Which Business Rates Reliefs Are Available in 2026/27?
The relief available depends on the property, the occupier, its rateable value and how the premises are used. Local councils decide whether the conditions for many forms of relief are satisfied.
Small Business Rate Relief
A business in England may receive 100% Small Business Rate Relief where it occupies one qualifying property with a rateable value of £12,000 or less.
Relief is gradually reduced for qualifying properties with rateable values between £12,001 and £15,000.
Businesses occupying more than one property may still qualify in limited circumstances, but additional-property rules must be checked carefully.
Retail, Hospitality and Leisure Multipliers
The temporary 40% Retail, Hospitality and Leisure Relief applied during 2025/26 and ended on 31 March 2026.
From 1 April 2026, qualifying retail, hospitality and leisure properties in England generally use lower permanent multipliers:
- 38.2p where the rateable value is below £51,000
- 43.0p where the rateable value is between £51,000 and £499,999
A property with a rateable value of £500,000 or more does not receive these lower RHL multipliers and generally uses the high-value multiplier. Eligibility depends on how the premises are occupied and used.
Transitional Relief
Transitional relief can limit how quickly a business-rates bill increases following the 2026 revaluation. It is generally applied automatically by the council when the property meets the conditions.
The maximum increase depends on the property’s rateable-value band. Transitional relief affects the speed at which the bill reaches its full revalued amount; it does not permanently remove the underlying liability.
Supporting Small Business Relief
Supporting Small Business Relief may apply where the 2026 revaluation causes a business to lose some or all of its previous Small Business Rate Relief, Rural Rate Relief, RHL relief or earlier supporting relief.
For qualifying businesses in 2026/27, the increase is limited to the greater of £800 or the relevant percentage cap. The percentage caps are 5%, 15% or 30%, depending on the rateable-value band.
Empty Property Relief
Most empty business properties receive an initial three-month exemption. Qualifying industrial premises, including some warehouses, may receive a further three months.
After the exemption ends, full business rates are normally payable unless another exemption applies.
Owners should check the rules concerning business rates on an empty property and notify the council promptly when occupation changes.
Other support may include charitable relief, rural relief, hardship relief and locally funded discretionary schemes.
The council should confirm whether an application is required or whether the relief will be applied automatically.
How Can a Business Check Its Rateable Value?
Businesses can use the government’s official business-rates valuation service to find the rateable value of a property in England or Wales.
The service can be used to:
- Search for a property by address or postcode.
- View its current and previous rateable values.
- Check how the current valuation was calculated.
- Compare the valuation with similar nearby properties.
- Report property details that appear incorrect.
- Start the process of challenging a rateable value.
Businesses should check more than the final number. The property description, floor area, use, effective date and valuation details may all affect the assessment.
Useful evidence can include lease agreements, rental information, floor plans, photographs, records of structural changes and details of comparable properties.
A challenge should be supported by relevant evidence rather than submitted only because the business considers its bill unaffordable.
The local council deals with the bill, payment and relief, while the Valuation Office deals with the rateable value.
The official service confirms that businesses can check comparable properties and review how the rateable value was calculated.
Why Might a Business Rates Bill Increase or Decrease?
A business-rates bill can change even when the property remains occupied by the same organisation. The change may result from a new rateable value, a different multiplier, the end of a relief scheme or an alteration to the property.
The 2026 revaluation means that properties are now assessed using rental-market evidence from 1 April 2024.
Areas and property sectors that experienced stronger rental growth may receive higher valuations, while properties in weaker markets may see lower values.
However, businesses should not assume that a 20% change in rateable value automatically produces a 20% change in the amount payable. The final bill also depends on:
- The multiplier used
- Transitional relief
- Supporting Small Business Relief
- Small Business Rate Relief
- RHL eligibility
- Local supplements
- Other discretionary or mandatory reliefs
The most reliable comparison is between the 2025/26 council bill and the complete 2026/27 bill, rather than between the old and new rateable values alone.
What Happens If Business Rates Are Not Paid?
Business rates are normally collected by the local council. When a payment is missed, the council may issue a reminder or final notice and can take recovery action if the amount remains unpaid.
Depending on the council’s procedures and the circumstances, recovery may include:
- Loss of the right to pay by monthly instalments
- A court summons
- Additional court or recovery costs
- A liability order
- Enforcement action
- Insolvency proceedings in serious cases
A business should not ignore a demand or assume that challenging its rateable value automatically suspends payment.
The amount shown on the council bill normally remains payable unless the council issues a revised demand or agrees another arrangement.
Businesses experiencing financial difficulty should contact the council before recovery action progresses. They may be able to discuss an alternative payment arrangement, confirm whether relief has been omitted or correct inaccurate occupation information.
How Does Transitional Relief Work in 2026/27?
Transitional relief limits how quickly a business-rates bill can increase because of the 2026 revaluation. It is intended to prevent an eligible business from facing the full increase immediately.
For 2026/27, the maximum revaluation-related increase generally depends on the property’s rateable value:
- Up to £20,000, or £28,000 in London: 5%
- £20,001 to £100,000, or £28,001 to £100,000 in London: 15%
- More than £100,000: 30%
These percentages are transitional caps, not predictions that every property in the band will receive that increase. The detailed calculation can also involve supplements and other adjustments.
The council normally applies transitional relief automatically. A business continues receiving it only until its bill reaches the full amount arising from the revaluation.
The 2026 scheme focuses on limiting increases. Reductions are not restricted through the same downward-phasing system described in older business-rates guidance.
How Could the 2026 Business Rates Changes Affect Companies?
The effect of the reforms will vary considerably between properties and sectors.
Retail, hospitality and leisure businesses with rateable values below £500,000 may benefit from their lower multipliers.
However, the advantage may be partly or completely offset where a property’s rateable value has increased significantly.
Businesses outside those sectors may also see mixed results. A lower or unchanged rateable value could reduce costs, while properties in locations with strong rental growth may face larger liabilities.
The most important effects include:
- New rateable values applying from 1 April 2026
- Five multipliers replacing the previous two-rate structure
- Lower multipliers for qualifying RHL properties below £500,000
- A higher multiplier for properties valued at £500,000 or more
- Transitional limits on some bill increases
- Supporting relief for certain businesses losing previous relief
- The integration of the former VOA into HMRC
Business rates should be considered alongside rent, utilities, insurance, staffing and other property costs. The wider relationship between taxation and commercial decision-making can influence location, pricing, investment and expansion plans.
Businesses should base decisions on their individual bill rather than national averages or predicted percentage increases.
Conclusion
The 2026/27 business-rates year introduced major changes for businesses in England, including new rateable values, five multipliers and lower rates for qualifying retail, hospitality and leisure properties.
Businesses should check the rateable value, property details, multiplier and relief shown on their council bill rather than relying on generalised forecasts.
Errors or missing relief should be raised with the correct organisation: the Valuation Office for valuation matters and the local council for bills, relief and payments.
Regularly reviewing property costs is particularly important because business rates can affect cash flow, pricing and longer-term premises decisions.
Understanding how taxation affects a business can also help owners plan for their wider financial obligations.
Where the potential liability is substantial or the valuation appears incorrect, professional advice from a qualified accountant or business-rates surveyor may be appropriate.
Frequently Asked Questions
What Are VOA Business Rates?
VOA business rates are taxes charged on most non-domestic properties. The Valuation Office sets the rateable value, while the local council calculates and collects the bill.
Does the Valuation Office Agency Still Exist?
The VOA ceased operating as a separate executive agency on 1 April 2026, when its functions became part of HMRC. Property valuations are now handled by the Valuation Office within HMRC.
When Did the Latest Business Rates Revaluation Take Effect?
The latest revaluation took effect on 1 April 2026. Rateable values are generally based on estimated open-market rental values as at 1 April 2024.
How Are Business Rates Calculated?
The property’s rateable value is multiplied by the applicable business-rates multiplier. The council then applies any reliefs, supplements or transitional adjustments.
What Are the Business Rates Multipliers for 2026/27?
England’s 2026/27 multipliers range from 38.2p for certain smaller retail, hospitality and leisure properties to 50.8p for properties with a rateable value of £500,000 or more.
Who Qualifies for Small Business Rate Relief?
Eligible businesses occupying one property with a rateable value of £12,000 or less may pay no business rates. Relief gradually reduces for values between £12,001 and £15,000.
Can a Business Challenge Its Rateable Value?
Yes. Businesses in England and Wales can use a business-rates valuation account to report property changes and challenge a rateable value they believe is incorrect.
Editorial Note
Last checked: 17 July 2026
This article primarily covers business rates in England. Business-rates rules, multipliers and relief arrangements differ in Wales, Scotland and Northern Ireland.
The information has been checked against current government guidance covering the 2026 revaluation, 2026/27 multipliers, business-rates relief and Valuation Office services.
This article is informational and does not constitute tax, legal or professional valuation advice. Businesses should check their council bill and seek qualified advice where their liability or valuation is uncertain.
Official Source Links
Find a Business Rates Valuation
https://www.gov.uk/find-business-rates
Small Business Rate Relief
https://www.gov.uk/business-rates-relief/small-business-rate-relief
Types of Business Rates Relief
https://www.gov.uk/business-rates-relief
Business Rates Valuation Account
https://www.gov.uk/business-rates-valuation-account
Valuation Office Joins HMRC
https://www.gov.uk/government/news/valuation-office-joins-hm-revenue-and-customs
2026/27 Business Rates Multipliers
https://www.gov.uk/government/publications/22026-notification-of-non-domestic-rating-multipliers-for-202627/22026-notification-of-non-domestic-rating-multipliers-for-202627
