Council Tax and business rates

webtalk

Will someone be liable for business rates if ..

1. They're employed as a home worker
2. Spend an average of 3½ days a week on the road (in number of hours)
3. Spend an average of 1½ days doing admin at home (in numbers of hours, not necessarily whole days)
4. Has his own desk which is used for both work and domestic admin purposes (I suppose computer games can be classed as 'domestic admin )
5. Uses about two shelves to store work-related papers and thing
6. Uses own computer and phone line for internet and phone calls relating to work (or uses company mobile if necessary)
7. Person pays internet connection and bulk of phone line rental - company pays about £5.00 extra on phone rental to pay for free daytime calls made on behalf of company as it is cheaper for them

Thanks.

Airwolf1

If I was to come out and inspect your property, based on what you say here, I would not class it as Commercial.

blue_monkey_2

I actually called my council and asked as I have the same as you (but I had one room used as storage and I do not go out on the road) and I was told no. If there were deliveries all day every day or if I had callers coming to collect goods or if the neighbours complained then I would then be liable for business rates.

I told them I would be using the property for packing and posting via the post box and that I had a courier call once or twice a week and they said they would not be interested in my home run business unless people (my neighbours) complained about my business activites.

I have a lot of friends who's husbands work by being 'based at home' so are on the road or work at a desk and none of them pay business rates either.

Hope that sets your mind at rest.

webtalk

Phew, thank you.

I had a serious few moments of anxiety as I've asked for a review and they'll be coming out to see the house.

Other houses like ours have been down-banded :T

Yes, you've put my mind at rest - big time.:beer:

Airwolf1

It isn't up to the council though, it is the Valuation Office Agency.

webtalk

Airwolf1 wrote: »

It isn't up to the council though, it is the Valuation Office Agency.

You have a point.

Airwolf, do you work for the VOA?

Airwolf1

Possibly, or used to.

webtalk

:whistle: :think: :whistle: :silenced:

Thanks

blue_monkey_2

Also, do not forget that you can still claim pro-rata expenses for use of your house for your business. I would suggest not worrying about a % of the mortgage as you only use a small portion of your house and then CGT will be payable should you ever decide to sell but you can claim part of your rent, utilities and council tax.

webtalk

blue_monkey wrote: »

Also, do not forget that you can still claim pro-rata expenses for use of your house for your business. I would suggest not worrying about a % of the mortgage as you only use a small portion of your house and then CGT will be payable should you ever decide to sell but you can claim part of your rent, utilities and council tax.

Are you talking about Income Tax here?

My main concern at this stage is the CTX and being done for business rates.

blue_monkey_2

No, not Income Tax.

if working from home there are allowances you can claim, how are you paid? Employer or Self-Employed?

If you have an employer you can still claim but puy putting through a self assessment form and claiming these as expenses.

If you choose to claim a pro-rata amount of your mortgage in your expenses then should you ever sell your house you will have to pay Capital Gains Tax on some of the sale price. This is why it is easier to leave alone unless you have an accountant.

I pay rent and used to use half of my old property for work and storage and so claimed 50% but now I use just one room out of 4 so claim 25% of my rent. Does that make sense? Are you working from home already? It might be worth starting a thread asking what you can claim for. I know some people claim for toilet rolls and stuff like that but I don't do this, I just do utilities, rent and council tax.

You really will not be done for Business Rates, you are not running a commercial business from your property you are doing what millions of others are doing and are working from home. Where would the council draw the line? My husband works by being based at home, I work from home, the bloke next door works from home, the lady over the road from me works from home. You really will not get in any trouble unless the neighbours complain about deliveries or people coming and going at all hours.

If you are worried call the business rates department of your local council and ask them. I did and they were nice and said they would not be interested in me and I do more from home than you do.