National non-domestic rates for academies: what you need to know for 2026/27

National non-domestic rates (NNDR) are a form of business rates payable on non-domestic property, set by the government and collected by the relevant billing authorities. Academy schools are entitled to significant NNDR relief, with 80% of the charge funded through mandatory rates relief and the remaining 20% funded by the Department for Education (DfE).

The method for accessing this 20% funding is dictated by the billing authority and whether it is implementing the central payment process.

What has changed for 2026/27?

Following a recent DfE guidance update for 2026/27, academies now have clearer confirmation on how this funding will be administered, including whether:

they will need to pay their NNDR bill and make their own claim to the DfE for 2026/27
the billing authority will submit an NNDR claim on behalf of the school under the central payment process.

What is the central payment process?

When operating under the central payment process, the school will not make any direct payments of NNDR to the relevant billing authority, and will not receive any direct grant funding from the DfE. However, the billing authority will still send an invoice, but this is for information only.

The DfE will indicate the notional NNDR payable and associated NNDR 'rates relief' funding via a debit and credit on the school's monthly DfE remittance advice.

What are the exceptions?

There are some exceptions to receiving funding, with the following exclusions:

vacant properties
rented facilities
offices, parking and nurseries which are rated separately from the main school site
buildings used solely for administrative purposes
NNDR incurred prior to conversion to an academy.

It is important for academies to review their property arrangements carefully to ensure only eligible costs are included.

The next step

Academies should review the DfE’s published information to confirm which NNDR payment route applies for 2026/27 and ensure their internal processes align with this.

If you require any advice with the above, please contact Jack Wilkinson or your usual UHY academy adviser.