If you’re running a business with a physical presence in West Sussex, you know the excitement of opening your doors. Whether it’s a high street shop in Horsham, a workshop in a Crawley industrial estate, or a café in Haywards Heath, your premises are the heart of your operation.

But along with the keys comes the inevitable brown envelope from the local council. Inside is your business rates bill, a document that can be confusing, intimidating, and a significant drain on your cash flow.

Many business owners simply pay it without question, unaware they could be paying too much. At Curve Accountancy, we want to change that. This guide will demystify business rates in plain English. We’ll break down how they’re calculated, explain the valuable reliefs you might be eligible for, and show you how to check if your bill is fair.

What Are Business Rates? A Simple Breakdown

Think of business rates as the commercial equivalent of council tax. They are a tax on non-domestic properties, and the money collected helps to fund local services provided by your council, from waste collection to planning departments.

If you occupy a commercial property like an office, shop, pub, or warehouse, you are almost certainly responsible for paying business rates.

The calculation itself is straightforward:

Rateable Value (RV) x Business Rates Multiplier = Your Annual Bill

Understanding the two parts of this formula is the key to understanding your bill.

Understanding Your Rateable Value (RV)

Your property’s Rateable Value is not what you pay. It’s the starting point for the calculation.

The RV is the property's estimated open market rental value on a specific date, as determined by the Valuation Office Agency (VOA), which is part of HMRC. It's important to know that your local council doesn't set your RV; they only send you the bill based on the VOA's valuation.

You can find your Rateable Value on your bill or by looking up your property on the VOA’s website.

The Business Rates Multipliers for 2025/26

Once you know your RV, it’s multiplied by a figure set by the central government each year. There are two multipliers for the 2025/26 tax year:

• Small Business Multiplier: 49.9p
• Standard Multiplier: 51.2p

The Small Business Multiplier is used for most properties with a Rateable Value below £51,000.

Example Calculation: A small retail unit in Crawley has a Rateable Value of £16,000. The calculation would be: £16,000 (RV) x 0.499 (Small Business Multiplier) = £7,984 per year.

But don’t panic! This is your bill before any reliefs are applied.

The Good News: How to Reduce Your Bill with Business Rate Reliefs

This is where you can make significant savings. The government offers several schemes to reduce the business rates bill, especially for small businesses.

Small Business Rate Relief (SBRR)

This is the most common and valuable relief for small businesses in West Sussex.

• If your property’s Rateable Value is £12,000 or less: You may be eligible for 100% relief. This means you pay no business rates at all.
• If your property’s Rateable Value is between £12,001 and £15,000: The relief is tapered. It goes down by 1% for every £30 of Rateable Value over £12,000.

You must apply to your local council to receive this relief, it isn't always applied automatically.

Retail, Hospitality, and Leisure Relief

This scheme offers a discount to businesses in these specific sectors. For the 2025/26 tax year, eligible properties can get 40% relief on their bills, up to a cash cap of £110,000 per business.

Charitable Rate Relief

Registered charities and community amateur sports clubs can apply for up to 80% mandatory relief. Your local council may also offer further discretionary relief.

Empty Property Relief

If your property is empty, you don’t have to pay business rates for the first three months. After this period, most businesses must pay the full amount. Industrial properties, like warehouses, receive an additional three months of exemption.

Checking and Appealing Your Rateable Value

Valuations are not always correct. If you believe your Rateable Value is too high compared to similar properties in your area, you have the right to challenge it.

1. Check: Go to the VOA website and look up your property. Compare your RV per square metre with neighbouring businesses. Note any inaccuracies in your property’s description (e.g., wrong floor size).
2. Contact the VOA: If you find a factual error, you can submit a "Check" case to the VOA to have it corrected. This is often the quickest way to resolve issues.
3. Make a Formal Challenge: If you still disagree with the valuation after the "Check" process, you can submit a formal "Challenge." You’ll need to provide evidence to support your claim, such as rental agreements for comparable properties.

Grounds for appeal include the property’s size being wrong, a change in the use of the property, or a significant change in the local area (like a major road closure) that negatively affects your business.

Real-World Example: A New Florist in Horsham

Let’s imagine Sarah has just opened a small florist shop in Horsham’s Carfax.

• Her property has a Rateable Value of £11,500.
• Her initial bill calculation would be £11,500 x 0.499 = £5,738.50.

This is a huge overhead for a new business. However, because her RV is below the £12,000 threshold, Sarah applies to Horsham District Council for Small Business Rate Relief.

Her application is approved, and she receives 100% relief. Her business rates bill is reduced from over £5,700 to £0. This frees up vital cash that she can reinvest in stock, marketing, and growing her business.

Get a Grip on Your Overheads

Business rates are a significant and unavoidable cost for many West Sussex businesses, but they don't have to be a source of stress. By understanding your Rateable Value, checking your eligibility for reliefs, and knowing how to appeal if necessary, you can take control of this major overhead.

Don’t just accept the first bill you receive as final. A few hours spent checking the details and applying for reliefs could save your business thousands of pounds a year.

At Curve Accountancy, we help local business owners build financial plans that account for all their overheads, including business rates. We can guide you on what reliefs you might be eligible for and ensure you have the financial clarity to run your business with confidence.

Ready to make sure you’re not overpaying? Get in touch for a friendly, no-obligation chat today.