Advice on business council tax

joshly

If I worked from home in a spare bedroom would I be liable to pay business council tax?

I would be working on a computer trading Foreign exchange virtually, there would be no visitors to my home, no deliveries, no post to do with the work as statements are sent via email.

I would prefer not to have a bed in the room, just a desk and filing cabinet. I know lots of people do this but I want to make sure of the rules regarding council tax.

paddedjohn

In theory business rates apply, but in practice i wouldnt worry about it.

Red_dog_Sam

If your spare room was used exclusively for your business then it could be subject to business rates. The Valuation Office could look at revaluing your property for both Council Tax and Business Rates purposes based on splitting off that part of the property used for business. Sounds like that won't be the case for you though - If you still use the office room for domestic and personal use as well then business rates wouldn't usually apply. Check out this link for more detailed information on how that is decided:
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1086066759

joshly

Thanks for the replies and the links.

It is something I have to look at as the neighbour in the flat next to me has a daughter working for the benefits office, so it is good to know the criteria that applies for Business council tax.

I did want to use the spare bedroom without a bed in it but according to that link a room used solely for business purposes (composite property) is liable so maybe I should put a single bed in there or just have the PC in the lounge.

No modifications will be made to the property, I would be in and out of the room 5 days a week checking on things.

I was trying to get a rough idea of how much could be payable on that site but I understand looking for the ratable value is for Business premises, the flat I am moving into is tax band A.

So at worst I pay council tax on all the rooms except the spare bedroom where business tax applies.

lincroft1710

You don't have to have a bed in the room, you could have dining table and chairs, home gym equipment, spare wardrobe, bookshelves or bookcase with non business related books, model railway layout, in fact anything which relates to the non business part of your life.

Savvy_Sue

lincroft1710 wrote: »

You don't have to have a bed in the room, you could have dining table and chairs, home gym equipment, spare wardrobe, bookshelves or bookcase with non business related books, model railway layout, in fact anything which relates to the non business part of your life.

Or the ironing board might be kept and used in there.

joshly

Thanks for the suggestions.

I will have a desk and filing cabinet one end of the room and gym equipment the other end. Will also use that room for ironing and drying clothes.

persa

Are you a home owner or a tenant?

justjohn

Thought i read somwere you could use 10% of your house before it was a problem?

lincroft1710

justjohn wrote: »

Thought i read somwere you could use 10% of your house before it was a problem?

An urban myth.

Any room(s) or outbuildings which are used wholly for business purposes could be subject to non domestic or business rates. However if, for example, it was just a very small poor quality shed that was used, the Valuation Office Agency may decide just to ignore it and say it was "de minimis" (of little value).

joshly

persa wrote: »

Are you a home owner or a tenant?

A home owner.