Business Rates

ashvc

I am an owner occupier of a business premises with rateable value of 19750£. I am not eligible for the grant and as I am a small self employed business not able to sustain the business rate payments and my future is in doubt with the lockdown. Not sure if I will get business loan as business is in loss. What are my options as there seems to be nothing out there for me.
Is it possible to sublet?

Jeremy535897

If you are self employed you may be eligible for SEISS:
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

ashvc

Thanks for your reply. I will not be able to claim much as the business is not much in profit. I unfortunately fall in a gap in the schemes by the government.
Does anyone know about business rates for 2 or 3 businesses operating from one premises without any walls separating the unit/premises?

lincroft1710

ashvc said:

Does anyone know about business rates for 2 or 3 businesses operating from one premises without any walls separating the unit/premises?

If the businesses are owned by the same person(s), but have different trading names, it will be a single rating assessment. If it the businesses are owned by different entities then the following may be helpful

Rating Manual - Volume 4 - Section 2: Occupation and The Hereditament

In any case, if the rating assessment needed to be split, the lock down would probably be long over before that could be done.

As an afterthought if you could give a bit more information as to what you intend to do I may be able to help further

Jeremy535897

I'm no expert, but I think that you pay the rates and charge sufficient rent to cover them as well as make a return on your investment. I think the Valuation Office Agency gets involved if there is a split of a hereditament into separate units, but I would guess that if there are no internal walls separating the units, this is unlikely to happen. If you are interested, see:
https://www.gov.uk/guidance/rating-manual-section-3-valuation-principles/part-1-hereditament

ashvc

Thanks lincroft1710 and Jeremy535897 for the information. Great help!! Subletting seems to be feasible without constructing a wall. Another question I had was would it be possible for my wife (running a different company) to rent part of the unit from me or does it have to be someone not related?

ashvc

lincroft1710 i own the property and I run the self employed business with my wife as a partner. There was a rate increase in 2017 from under 15k to just under 20k. I am running in loss / marginal profit for the past 3 years and the business is struggling. 
Now I am in a bit of a tight situation with no work and bills to pay and for no fault of mine, there is no help available. Just looking for options to lower my business rates bill which is 9.6k per year. Like maybe renting part of the unit to my wife who runs a ebay shop of the same stuff I sell. 

Any input wil be great. Thanks

Jeremy535897

I don't have the knowledge to answer your question, but there could be all sorts of consequences from letting part of the premises to your wife, including tax consequences.

ashvc

Thanks. The tax liability is all sorted with the accountant as her business is independent to mine. I am not sure about her renting part of the unit from me. Thanks 

lincroft1710

I don't know if the VOA would accept that there are 2 businesses as it is husband and wife and selling the same items but through a different medium and just using different parts of the same building. It looks too contrived. 

ashvc

Thanks again! Will keep it in mind.