At a glance:
- Business rates are being revalued in England and Wales from 1 April 2026.
- Advise clients to sense-check their new rateable value as soon as it arrives.
- Model the financial impact for clients and check if an appeal is worthwhile.
For the first time since 2023, business rates are to be revalued. The change takes effect in England and Wales on 1 April 2026.
At revaluation, the Valuation Office Agency (VOA) updates a property’s rateable value – the estimated annual rental cost – to reflect market changes, based on rental values on 1 April 2024. These regular valuations affect thousands of SMEs.
Softening the blow, the government says that for this revaluation it will reduce the business rates “multiplier” on properties with a rateable value below £51k. A business rates multiplier is a figure, set each year by the government, that is multiplied by a property’s rateable value to determine that year’s business rates payable.
For Simon Berkley, partner in the business rates team at Knight Frank, this shows the government’s intention to support most SMEs. However, Berkley says this support falls short for others. The government has ended the 40% discount for retail, hospitality and leisure (RHL) firms with rateable values under £500k, and replaced it with lower, less generous multipliers.
As the business rates landscape shifts, it’s worth keeping an eye on not just the rates changes but the appeals process and ways to model the financial impact for clients.
It’s understandable that business will be worried, says Lee Murphy, managing director at The Accountancy Partnership. But he adds that a revaluation doesn’t automatically mean business rates will rise. Regularly updating the figures means business rates reflect the market as it changes, rather than relying on values that are years out of date.
Businesses can be unsettled by sharp changes in costs. But Murphy notes that clarity and planning time can help. “SMEs cope far better when they understand what’s changing and can prepare for it,” says Murphy.
Tackle revaluation head on and early
The GOV.UK website provides a basic calculator to estimate rates bills. But Berkley notes that it offers limited help in accurately assessing businesses’ liabilities.
The introduction of new multipliers, together with new supplements and more complex regulations governing transitional relief, has made it much harder to accurately calculate rates bills without expert advice.
Accountants can support clients in working out what the revaluation means for monthly cashflow, whether any reliefs might apply, and what to do if the numbers look off.
You don’t need to be a valuation expert, says Murphy. But you do need to be able to explain the moving parts in plain English – the new rateable value, the rate used to calculate the bill, and any reliefs or transitional rules that might soften changes.
Transitional relief is crucial; it limits how much your bill can change each year after revaluation. It’s designed to lessen the shock by ensuring any increases (or decreases) are phased in gradually.
“SMEs cope far better when they understand what’s changing and can prepare for it.”
Lee Murphy
Check whether to appeal rateable values
If the rateable value does not reflect the true rental value of the property at the valuation date, it can be appealed.
For Murphy, the best approach is to treat the revaluation like a quick “sense check” moment – and if you need to act, act early. “Look at the new rateable value early, check that the VOA’s information is correct, and if it doesn’t look right, don’t leave it sitting in the inbox.”
The process of appealing with the Valuation Office Agency (VOA) is typically staged. Check the details first, then challenge with evidence, and escalate if needed. Evidence such as property measurements, condition, use of the space, and valuation of comparable properties will all matter.
Businesses have until 31 March 2026 to lodge appeals against their current business rates. If an appeal succeeds, reductions can be backdated up to three years. Appeals against the new rateable values can be submitted from 1 April 2026.
Model the financial impact for clients
With so many moving parts, small businesses face a complex task in getting business rates right. Berkley says advisers must help businesses factor in the level of rateable value, reliefs, and whether any supplements apply.
It is important to consider the full impact over the next three years. Modelling the effects of revaluation is therefore essential, particularly to identify where clients will benefit from transitional relief and phase in increases in liability.
Murphy recommends keeping modelling simple by running three scenarios: best case, expected, and worst case. Then, translate the impact into monthly cost so it is easy to budget for.
Once you can see the numbers clearly practical decisions can be made, from building in a buffer, to reviewing pricing, planning cashflow, or looking at ways to reduce other overheads. “The aim is to make business rates predictable on paper, even if the change itself isn’t,” he adds.
“Business rates can feel like one of those costs that happens to you, rather than something you can control,” says Murphy. “But revaluation is a good moment to be proactive.” A quick sense check, a bit of modelling, and some advice early on can make a real difference to how a business approaches the new rates period.
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