Business Rate on 2 adjoining shipping containers

giamaqui

Hello, we are renting 2 adjoining shipping containers for a doggy daycare business. As per council regulations, we need to ensure a minimum amount of space for each dog hence 2 containers are required to make the business viable in terms of revenue. The problem is we are now charged a business rate for 2 properties (single containers are exempt from paying) which could kill the business.The 2 containers are next 2 each other but we need to exit one in order to access the other. Do we have any chances for a successful appeal?

lincroft1710

I'm ex VOA but it is a long time since I had any input into Non Domestic Rating.


I am presuming that you have 2 rating assessments, one on each container. The rules may have changed, but in my day if you had 2 contiguous ("officialese" for adjoining) properties in the same occupation it was one assessment even if there was no intercommunication. If this is still the case then you could have good grounds to appeal for a single assessment. However if there is (for example) a space between the 2 containers which is not exclusive to either container, then 2 assessments may well be correct.


One thing that does concern me is your statement that having to actually pay rates could kill the business. If this is the case then I would suggest you may need to rethink your business model as the small business rate exemption could be withdrawn or reduced in the near future if the government so wishes

giamaqui

Thanks so much for your response! At the moment the rateale value for each unit is 10k, but we are benefitting from small business relief and are not being charged for the additional property for the first year. I'm thinking if we are successful with the appeal and get a single assessment the rateale value for both units combined will be around 20k (this qualifies for a slighly lower rate in London) but might lose the relief on the additional unit with the risk to be charged for it in arreas. Is it worth doing it for the sake of few hundreds pound per year? Or shall we take a different approach? Just to add most of the business operating in the development only rent one container and qualify for full exemption! Don't really know how to go about it...

lincroft1710

Having looked at this website


https://www.gov.uk/apply-for-business-rate-relief/small-business-rate-relief


I don't think you would be eligible for small business rates relief if you merged the 2 properties as they would probably exceed the £15,000 maximum limit. Even if they were not merged, it appears you would not be eligible for BRR as the 2nd property would almost definitely have an RV in excess of £2899.


This topic is far removed from my knowledge of BR and sometimes the info on the govt. website is not 100% accurate. As we are talking quite large sums of money you may to consider consulting a properly qualified commercial property surveyor who is experienced in BRR. Do be aware they won't come cheap, especially in London!


Edited to add


There is a way round this, but it may not be possible for you.

Let us assume your business is "ABC DoggyDaycare Ltd". (directors Mr and Mrs Giamaqui) You have this business occupy container No. 1. You set up a second company "XYZ Luxury DoggyDaycare Ltd" (sole director Mr G) and occupy container No. 2. Two separate companies occupying a container each and both qualifying for SBRR

However, I must stress that you discuss such a  move with your accountant as there could be complications and possible tax disadvantages