Non-Domestic rates are the Business equivalent to Council Tax. Businesses pay rates as their contribution towards the cost of local authority services.
The non-domestic rates collected by Local Authorities are paid into a Central Government pool and redistributed to all charging authorities based on a prescribed formula. This redistributed income, together with income from Council Tax payers and revenues support grant from the Government, is used to pay for the services provided by the Local Authority. Non-Domestic Rates are calculated by Rateable Values.