A Beginner’s Guide to Understanding Rateable Value for Holiday Lets Business Rates

If you operate a holiday let in the UK and you’re still paying council tax, it may be time to switch to business rates. Many holiday let owners reduce their council tax bill to £0 and even claim refunds back to 2023 once they’re correctly assessed.

To understand how this works, it’s important to grasp one key concept: Rateable Value (RV) — the figure the Valuation Office Agency (VOA) uses to calculate business rates.

The VOA doesn’t estimate your RV randomly.They determine it using real market comparables from holiday lets that have already been assessed.

This guide explains how RV is actually calculated, why it matters, and how services like Host Tax Back help ensure you’re paying the right amount — and not a penny more.

What Is Rateable Value?

Rateable Value is the estimated annual rental value of your property as a holiday accommodation business, set by the VOA. Your RV is then multiplied by the government’s annual business rates multiplier to determine your bill — though most small holiday lets qualify for 100% Small Business Rates Relief (SBRR), reducing the bill to £0. This is only true where the RV is below £12,000 meaning that it's important to estimate your RV before processing the switch to business rates.

How do the VOA Calculate Rateable Value?

The VOA publishes rateable values for thousands of holiday lets across the UK. Each entry typically includes:

• number of bed spaces

• type of accommodation

• size

• location

• final RV assigned

Using these data points, the VOA calculates an actual cost per bed space for each property.Your own RV is then determined by multiplying the local cost-per-bed-space figure by the number of bed spaces in your property. This is the same method used by surveyors and rating professionals — using real VOA comparables, not broad estimates.

Why This Matters?

If the RV assigned to your property is too high, you may lose eligibility for Small Business Rates Relief. This can result in:

• paying more in business rates than you would in council tax

• unexpected large bills

• difficulty reclaiming past payments

  
  

Getting the RV right is crucial.

An Easier Way

Most hosts don’t have the time or expertise to analyse VOA datasets or identify valid comparables. Host Tax Back offers this free of charge when we manage your switch from council tax to business rates.

Here’s how we do it:

1. Identify Comparable Properties Using VOA Records

We locate properties similar to yours in:

• bed spaces

• property type

• standard and condition

• layout

• location zone

2. Extract and Apply Cost-Per-Bed-Space Values

We calculate the exact cost-per-bed-space used by the VOA in your area, then apply it to your property to ensure your RV is:

• accurate

• based on real, local data

• aligned with regional benchmarks

This ensures you are properly valued and remain eligible for relief where applicable.

3. Handle the Entire Switching Process

Host Tax Back manages:

• RV estimation and expected refund

• submitting your application to the VOA

• applying for Small Business Rates Relief (usually 100%)

• dealing with local councils

The Result

Most hosts go from paying thousands in council tax to paying £0 in business rates with SBRR.

If you run a short-term rental or Airbnb, you could be just a few clicks away from:

• significant refunds

• zero council tax bills moving forward

• correct valuation and compliance

For your free rateable value assessment visit:

www.hosttaxback.co.uk

59% of Airbnb owners pay council tax when they don't need to - Don't be one of them!