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(Former) Business Premises Rates and Electricity

We have spent so many hours days on the phone getting nowhere I am hoping someone here might be able to give us some insight.  

My uncle was self- employed, working from a workshop in his garden which is classed as a business premises for rates purposes. In 2021 he got ill and ceased trading. He simply closed the doors of the workshop and left it with all his tools of trade remaining there. These tools were transferred to personal use in his final accounts as a sole trader.

He currently gets small business rates relief on the premises and has continued paying the workshop electricity on a business tariff, with just a few Kwh of actual usage.

We are wondering if, given increasing electricity costs for businesses whether to get the supply removed completely, we have tried to contact the electricity company about this but they could not be more unhelpful, does anyone have any idea how you go about this and how much this would cost roughly? Clearly if it’s £thousands it would probably not be cost effective.

As the premises is no longer used for business, could he ask the council to transfer the workshop to domestic use to avoid paying the electricity at business tariffs? Would the floor area then be added to his domestic rates and increase his domestic council tax charge?  

It is entirely possible that any future owner may want to use the workshop as a business premises again so he is not sure of the wisdom of doing either of these but he is struggling financially so we are trying to find a solution. He does not want to rent out the premises.


Comments

  • Robin9
    Robin9 Posts: 12,833 Forumite
    Part of the Furniture 10,000 Posts Name Dropper


    He currently gets small business rates relief on the premises and has continued paying the workshop electricity on a business tariff, with just a few Kwh of actual usage.


    What is a typical bill / usage ?

    Is he still in contract ?
    Never pay on an estimated bill. Always read and understand your bill
  • Robin9 said:


    He currently gets small business rates relief on the premises and has continued paying the workshop electricity on a business tariff, with just a few Kwh of actual usage.


    What is a typical bill / usage ?

    Is he still in contract ?
    Usage was less than 20 Kw in the past year, the bill is mainly the daily standing charge
  • J_B
    J_B Posts: 6,827 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    A while back we had a British Gas contract with zero standing charge - not sure if one is still available.

    Ask the council about rates
  • lincroft1710
    lincroft1710 Posts: 18,984 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    It will be the Valuation Office Agency (part of HMRC) not the council, who will decide if the shed can be removed from the Non Domestic Rating List.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
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