Business tax

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Does anyone know any good websites that give precise information on this subject?

I am currently undertaking a degree in acupuncture and have a detached garage I barely use, I was thinking that converting this to a combined garden room, home office and treatment room may be a good solution. But I was informed this may be a problem due having to then pay business rates. I have tried to read the valuation office, local government and general websites to get answers but they dont seem to tell me any answers or if I would be liable to business rates.

I know people who do have a treatment room at home, and say as long it’s combined use there won’t be a problem. Then other people telling me I will have be valued and pay business rates, so I am very confused. The thought of paying business rates would make working in a clinic more cost effective I think.

Who could I get to assess situation, and tell me? The local council dont seem to want to help me when I phone up, so there no use at all.

I have plenty of parking, and my covenants aren’t an issue.

Comments

  • CIS
    CIS Posts: 12,260 Forumite
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    It comes down to the level of usage - a de minimis use is unlikely to change the usage but if you have clients coming in and out them the Valuation Office may wish to apportion the usage. You need to contact your local Valuation Office as they are responsible for the decision and the council cannot do anything until that decision is made.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • Pennywise
    Pennywise Posts: 13,468 Forumite
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    You need to check with your local council planning department about whether planning permission for change of use will be needed. Usually not for a business like a home office where no/few clients visit, but for a treatment room, if there are going to be lots of clients regularly attending, then I think planning permission for change of use to business premises will be needed.
  • beverley1471
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    So the local planning office are the people I need to speak to then? They would be able to tell me yes or no.

    I have spoken to two other people who live fairly locally and neither have had to pay business rates, so that seems a good sign.
  • beverley1471
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    The planning office in my area don’t answer emails, and want 20 quid for a thirty minute appointment, would the valuation office be able to tell me?
  • TheCyclingProgrammer
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    No, you will need to speak to both the planning office and local valuation office. The former will advise on whether or not a planning application is needed for the conversion to business premises (given it will be used as more than just a home office and you will have clients visiting, it almost certainly will) and the VO will be able to tell you if it will be require business rates (a possibility).
  • beverley1471
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    I can really see why people just don’t bother with this, it’s a nightmare! I only wanted an simple yes or no, renting a cheap place seems to be better, no one wants to give an answer. I give up
  • TheCyclingProgrammer
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    I can really see why people just don’t bother with this, it’s a nightmare! I only wanted an simple yes or no, renting a cheap place seems to be better, no one wants to give an answer. I give up

    Why don't you spend the £20 on the consultation with the planning officer? It seems like a small price to pay to help get your business off the ground.

    Unfortunately there is no simple yes/no answer, especially when it comes to business rates. Many people get away with a home office without paying business rates as it isn't exclusively used for business purposes and they don't have visitors, but if you're expecting to run an active business premises from your home then you should expect there to be some red tape I'm afraid (and don't rule out objections from neighbours too if they believe there will be increased noise or traffic!).

    It might just be simpler to hire premises, you need to weigh up the costs/hassle.
  • pramsay13
    pramsay13 Posts: 1,964 Forumite
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    I work from home in what was my garage. I have around 2 or 3 customers a day.
    There was no issue with planning or with business rates.
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