Hi, just need some help to settle an argument

My friend doesnt believe me when I say everyone running a UK web hosting business will be paying business rates to their local council if they have their own premises or a dedicated room at home.

Could you please post and tell him hes wrong.

I can see what he means, because it doesnt appear to be that hard just to start hosting, but I know thats breaking UK law

Please, if you're in the UK and you've got a business, just post and tell him that you do have to pay rates.

Thanks in advance

Mike

No not every business in the UK has to pay business rates.

It depends on where you live, what you have changed in your house. E.g if you operate your business from a laptop, and move between each room in your house and have not converted a room into an office. Then you will not pay business rates.

But if for example, you have converted your garage into an office, and operate from the on a day to day basis, you probably will have to pay business rates.

So basically the average UK web hosting provider (teen kid in his/her bedroom) will not be paying business rates, and will not be required to.

The amount you pay depends on a number of factors.

Thanks for that

I just needed someone else to back me up
If you have your own premises or an office at home specially for the business you will have to pay.

Has anyone actually had a visit from the local council to look at where they work? The website seems to say they normally visit to do the assessment. Seems a bit over the top for the average teen kid in his/her bedroom.:)

Thanks

Mike

I know a lot of people who work from home, but none of them have ever been visited nor do they pay business rates. Just down to the fact they dont have an office at home.

I think its mainly for people who have changed the spare room into an office, maybe employ somebody who is based there and are accepting telephone calls, faxes etc.

You can, in some circumstances, claim part of your property is a business and pay NNDR on that whilst reducing the council tax paid. It'd be a gamble as to which was cheaper and I recall the guidlines are complex/subject to interpretation so I would advocate speaking to your local council.

Make sure that the owner of the property (iRead the Mortgage provider if their is a mortgage on the property) allows a business to be run from the premises.

Most standard mortgages do not allow this if you read the small print and would be liable.

Just as an example ive been thinking of.

Does a Kleeneze or Avon sales woman / man need to pay business rates, or allowed to run a business from their home. Because in therory they are running a business, receiving catalogs, preparing orders etc.

I bet most of them dont.

Business rates apply to premises which have been specifically converted to be used to conduct business from.

So you would have a proper office setup and your office phone and such going into the property.

If you simply work from home from a laptop then generally business rates wouldnt apply.

Infact there are some residences in the UK where you are not actually allowed to conduct business from them.