business rate - do i pay them??

philip2 · 09-11-2008, 07:30

A workshop has come up locally. being used as a spray shop and this moment but the lads waiting until he can move into a larger unit on the same site.

been told the costs are £300 a month + elec/water and £650PA for the rates.

just wondering if because its not a business and for private use/storage would we have to pay the £650 regardless or would there be someway of reducing it? i know £650 isnt that much between 3 of us over the year, but if can get it bit cheaper, then obviously a bonus.

any info appreciated

phil

Paul · 09-11-2008, 10:15

Yes you'll be paying buisness rates now on any unit.

Trevor · 09-11-2008, 11:36

There are actually two types of rates, Domestic Rates (aka Council Tax) and non-Domestic rates (aka Business Rates) You have to pay one or the other unless you can get an exemtpion or reduction. Charities and community amateur sports clubs can get their business rates bills reduced by 80 per cent. In some areas, this could be reduced even further. Other non-profit organisations can apply for up to 100 per cent discretionary relief.

I don't know if you would get away with calling yourself a club and applying for a reduction.

philip2 · 09-11-2008, 11:45

dont mind having to pay rates. but if its e.g.

£650pa business and £350pa domestic, then obv prefer to be paying the domestic. as its just private workshop space to work on own cars

Chriscavturbo · 09-11-2008, 12:02

Yeah u will have to pay rates even if u are not trading. My rates on my unit are £1100 a year but as it is my only premises i get a 50% discount, i think that is the same accross the board. just call your local council office and they will tell you all you need to know.

philip2 · 09-11-2008, 12:28

will give them a ring tomorrow. i hate it when in work on weekends, nowhere/one is open to ring!!

Allvaux · 09-11-2008, 17:14

Phil, any spare space left you fancy renting out to me? I only need some storage space and outside is fine as long as it's secure.

**jamied** · 09-11-2008, 17:25

you will have to pay business rates but there are so many things you can do to bring them down, e.g. i my case

2500 sq ft unit

rates = £850 pa
50% small business claim
20% for no heat and single thickness roof
5% for 'fire exit path' (non production area)

total = £212.50 + vat

But next year i have to add 15% back on due to having an office and mezzanine flooring..but i gain some back due to machine area taken.

philip2 · 09-11-2008, 19:15

allvaux - pm me what your looking at storing, just theres 3 of us going in on it for building are cars. but been told can keep few things outside as long as tidy

a lads in there already so need to wait til he's out to clear out his things to workout space. but think could sort something out. its pretty secure. 2 gates to get through before you drive round to the unit anyway, and i think cctv

jamie - cheers for that

. just a quick one...wouldnt i/mates get hammered by tax then ifclaimed as being a small business?

**jamied** · 09-11-2008, 19:24

you can run it as a paid hobby but if you start making a bit of money then you could class it as self employed work, you will already pay you stamp on your first job and this would be classed as your second, keep receipts and bills and then fill in a self employment tax return each year.

There are many paths to go down if there are a few of you but to not get tangled in with red tape just do it each of you are self employed, then later look at pushing for a business if you want.

Also i know they are mate but get some sort of contract worded up so if anything happens you are not all in the poo poo...e,g, split of rent, rates, bills ect...

philip2 · 09-11-2008, 19:34

thats the thing, the 2 lads im looking at going in on the space i can trust. i build engines and do quite a bit of headwork + when gf moves in and dad gets his other car back, ive got nowhere to get my corsa dry built, mapped etc etc, and i have done quite abit of work for them in past and recently.

other mates on the other hand i know would **** about paying or be all up for it for a month or so then want to piss off. so as said we'll do a 3month contract sort of thing. good thing is were not on a contract with the lad who owns the units. but do get reciepts etc for the unit for when its paid til. that way if it does does tits up between mates then not tied in for so many months. but everything gets split equally.

i may look into paid hobby as im always building engines, porting etc for mates etc

(confusing bit now so bear with me lol)
mates gf's mum will be ringing tomorrow to speak to the girl who sorts it, to see what they say and see what mates gfs mum can do as shes a top law boffin, so be easier getting her to draught something up to see what prices, agreements between eachother sorted

Trevor · 09-11-2008, 20:49

Also if your running as a business you can offset any losses against any PAYE tax you pay at your day job.

**jamied** · 09-11-2008, 20:51

Quote:

Originally Posted by Trevor

Also if your running as a business you can offset any losses against any PAYE tax you pay at your day job.

im sure you can off set it to your partners also..

Station · 09-11-2008, 22:30

My GF had a really small shop and she paid 80 quid a month for business rates. I'm not sure what she got for this though. Surely it's just another charge by the council or landlord?

**jamied** · 09-11-2008, 22:36

Quote:

Originally Posted by Station

My GF had a really small shop and she paid 80 quid a month for business rates. I'm not sure what she got for this though. Surely it's just another charge by the council or landlord?

its the council mate, it pays for the same type of stuff as your council tax for your house.

we have a big argument at the moment as my unit is in the sticks and we have no street lights or police patrols so we don't get much for our business rates.

Trevor · 09-11-2008, 22:52

Quote:

Originally Posted by jamied

we have a big argument at the moment as my unit is in the sticks and we have no street lights or police patrols so we don't get much for our business rates.

Aye, but someone has to pay to put my kids through school........

**jamied** · 09-11-2008, 22:56

Quote:

Originally Posted by Trevor

Aye, but someone has to pay to put my kids through school........

that's the only resoin i pay it to fund schools and hospitals...but when they list street lamp repair?? my nearest one is on the A14..

Station · 10-11-2008, 01:17

Surely 'school' comes under another charge/tax? I wouldn't have thought 'business rates' covered schools - I hope it doesn't.

Trevor · 10-11-2008, 09:23

It is all one big pot that everyone has to piss into. Why do you hope it does not, do businesses not benefit from educated staff?

Allvaux · 10-11-2008, 12:05

Philip, possibly worth getting some of the money from your 'partners' up front just in case. I'm sure you can make it work and I bet you'll find some new customers where that place is. You have a huge estate down the road don't forget and there's probably other places on that industrial estate who would use your services if you wanted.

philip2 · 10-11-2008, 12:40

time will tel