Business guide
Business rates
for small units, explained
Business rates are the property tax on most commercial premises, and they worry a lot of people moving into their first unit. Here is how they work, why many small businesses pay little or nothing, and what to check before you sign.
What business rates are
Business rates are charged on most non-domestic property in England, such as shops, offices, workshops and units. They are collected by the local council, which in our case is Blackpool Council, and they are separate from your rent.
Your bill is based on the property's rateable value, not on your turnover or profit. Two businesses in identical units will normally be assessed the same way, whatever they earn.
Whether rates apply to a particular space depends on how it is assessed. That is why, for any unit you are considering, the right first question is simply: does this unit have its own rateable value, and who is liable for the bill?
It helps to separate three costs that people often blur together: rent, which goes to the landlord; utilities such as electricity; and business rates, which go to the council. Budget for each one on its own line.
Rateable value and who sets it
Rateable value is set by the Valuation Office Agency (VOA), not by the council or your landlord. It is the VOA's estimate of the yearly rent the property could have been let for on the open market at a fixed valuation date.
The council then works out your bill by multiplying the rateable value by a figure called the multiplier, and deducting any reliefs you are entitled to.
- Find the rateable valueYou can look up a property's rateable value on GOV.UK using the address.
- Check the multiplierThe council's business rates pages explain which multiplier applies for the current year.
- Apply any reliefSmall Business Rate Relief and other reliefs reduce the bill, sometimes to zero.
If you think a rateable value is wrong, GOV.UK explains how to check and challenge it with the VOA.
Small Business Rate Relief
Small Business Rate Relief is the reason many sole traders and micro businesses in small units pay much less than they feared. It is aimed at businesses that occupy one property, or one main property plus small additional ones, with a low rateable value.
The 2026/27 position
For the 2026/27 tax year, GOV.UK and Blackpool Council describe 100% relief for eligible properties with a rateable value up to £12,000, with relief tapering for values a little above that. Thresholds and multipliers can change each April, so check the current figures on GOV.UK before you rely on them.
A few points catch people out:
- You usually have to apply for relief. It is not always applied automatically.
- Taking on a second property can affect your relief, so check the rules before you expand.
- You must keep paying any bill you receive while the council considers your application.
Blackpool Council lets you apply for reliefs and report changes online through its business rates pages.
Business rates at The Rock Factory
Business rates may apply to our commercial units. Because liability depends on how each space is assessed, we would rather tell you about the specific unit than give a blanket answer that might not fit. Ask us about the unit you are interested in before you move in, and we will tell you what we know.
If you are budgeting now, list the costs you know for certain first. The 150 sq ft unit is £65 a week, or about £282 a month. The 160 sq ft unit is £69 a week, about £299 a month. The 180 sq ft unit is £78 a week, about £338 a month. Electricity is charged at the supplier rate with no markup, and there are no utility deposits. Our prices explained page breaks this down further.
How to budget for rates
Even if you expect relief, it is sensible to plan as though a bill could arrive. Here is a calm way to do it.
- Ask the landlord firstFind out whether the unit has its own rateable value and whether you will be liable.
- Look up the valueUse the GOV.UK service to see the current rateable value, if there is one.
- Check your eligibilityRead the Small Business Rate Relief rules for the current year and see whether you qualify.
- Apply promptlyContact Blackpool Council's business rates team as soon as you take on the property.
- Keep a bufferHold back a little each month until you have a confirmed position in writing.
Rates, home working and storage
If you currently work from home, GOV.UK says you would not normally pay business rates for using a small part of your home as an office, as long as you do not sell to visiting customers, employ people there or make non-domestic alterations. Moving to a unit changes that picture, which is one reason our guide to moving your business out of home asks you to check rates early.
Rates are about the property, not what you keep in it. If you mainly need storage rather than a workspace, ask how the space you are looking at is treated.
Whatever your situation, keep any letters from the council or the VOA together with your tenancy paperwork. If your circumstances change, for example you move to a larger unit, you will need them.
Questions to ask before you sign
Rates surprises usually come from questions nobody asked at the start. Put these to any landlord, in writing if you can, before you commit to a unit, shop or office.
- Is this space assessed on its own, or as part of a larger property?
- If it is assessed on its own, what is the current rateable value?
- Will the bill come to me, or is it handled another way?
- Has the previous occupier claimed any relief that I should know about?
- If I rent two adjoining units, how would that be treated?
The last question matters because combining spaces, or taking on a second property, can change both the assessment and your eligibility for relief. Get a clear picture first, then speak to Blackpool Council's business rates team with the details. They deal with these questions every day and would rather help you get it right at the start than sort it out later.
Before you act on this
This is general information, not legal or tax advice. Business rates rules, multipliers and relief thresholds are set by government and can change from year to year. Always check GOV.UK and Blackpool Council for the current position, and speak to the council's business rates team or a qualified adviser about your own property.
Questions
Do I pay business rates on a small unit?
It depends on whether the unit has its own rateable value and who is liable. Many small businesses on low rateable values qualify for Small Business Rate Relief. Ask the landlord about the specific unit, then check with Blackpool Council.
Is Small Business Rate Relief automatic?
Not always. You may need to apply to the council. Blackpool Council has an online route for applying for reliefs and reporting changes.
Who decides the rateable value?
The Valuation Office Agency sets rateable values. The council uses that figure to calculate the bill. If you think the value is wrong, GOV.UK explains how to challenge it.
Are business rates included in Rock Factory rent?
No. Rent covers the unit, and electricity usage is charged separately at the supplier rate. Business rates may apply to commercial units, so ask us about the unit you want.
Sources and official guidance
- Business rates: overview (GOV.UK)
- Small Business Rate Relief (GOV.UK)
- Check and challenge your rateable value (GOV.UK)
- Business rates relief (Blackpool Council)
- Business rates explained (Blackpool Council)
- Running a business from home (GOV.UK)
Prices are subject to availability. Minimum rental term: one month, then one month’s notice to leave. Electricity usage is charged separately at the supplier rate, with no markup. Business use needs prior approval. Car storage is not permitted.
