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Business Rates Multiplier (UBR) 2020/21
The September 2019 CPI figure was announced on 16th October as 108.5 which gives a CPI inflation rate of 1.78%.
This should have resulted in a provisional Small Business Non Domestic Rating Multiplier (small UBR) for England in 2020/21 of 0.500 however the government has determined that the Multiplier will actually be 0.499
The formula to determine the new multiplier is A x B / C where:
A is the current Small Business Non Domestic Rating Multiplier – i.e. 0.491
C is the September RPI (not CPI) index for the previous year
B is either the September RPI (not CPI) index for the current year or a figure prescribed by Government and since 2017 the value of B has NOT been the RPI figure. It has been set (or “prescribed”) at a level to replicate the effect of a CPI increase.
This year, the government has prescribed the value of B to be 288.7 which results in a Small Business Non Domestic Rating Multiplier (small UBR) for England in 2020/21 of 0.499 and a (estimated) Non Domestic Rating Multiplier (Large UBR) of 0.512
The rate of inflation used in Transitional Calculations (Q) is determined by the change in the small multiplier not the CPI or RPI. The value of Q for 2020/21 will therefore be 1.016 ( or 1.6% when expressed as a percentage)
These figures should still be considered as Estimates. The Provisional Multipliers will be formally announced in December 2019 and confirmed in February or March 2020.
More than the Multiplier
The multiplier is only part of the story when calculating your rate liability. Many other factors may be involved. Calcurate is the quick , easy, and accurate way to calculate your current, future, and past business rates charges. Try it now