Business rates working from home

[angels]

Hi everyone, I was just wondering if any of you that work from home have to pay business rates?

I work from salon at my home which is my converted garage... i have been here for 5 years now, but yesterday i had a chap call out of the blue, unannounced, wanting to come in and measure my room. I was confused, as we are remortgaging and have been expecting someone from the mortgage company to come and value our house, but i think he was from the council. He pulled out a floor plan of our house and said he only needs to measure my salon and toilet room.

i had a client in at the time so he couldn't come in and do it, but he said i might be able to claim for small business discount?

I let the council know 5 years ago what i was doing and they said it was fine, and no one asked me to pay any business rates then, so i just think its weird that someone turned up yesterday talking about business rates?

i was just wondering if any one on here has to pay business rates who is working from home,

and how much i would actually need to pay?

thanks everyone xx

 

[squidgernetball]

Unless it's huge you would be exempt under small business rates allowance so don't panic.

Vic x

Sent from my GT-I9505 using SalonGeek mobile app

 

[angels]

Ok thanks Vic, fingers crossed.

i can't understand why they have suddenly turned up on my doorstep after 5 years tho? x

 

[angels]

The bloke from HMCR valuation office has just been back to measure up, and take photos of my '3 for 2' cabinet, where I'm trying to sell products (that never sell)!

He said he is going to have to back date my rates to 2010!

our council have just written to them apparently a few weeks ago, asking them to have a look at my website, and to come round and assess. When I told them i was setting up from home 5 years ago, the council never told me i had to pay business rates. this man did say i can apply for a discount because I'm a small business.

Does anyone know if i will have to pay the full amount up front before i can apply for the discount?

i hardly make enough profit to live on as it is, never mind the government taking more off us.

he is also sending some other person round to look round our whole house to assess whether we are paying the correct council tax band. I think we are in a too lower band personally so they will probably back date that too!

i feel like closing down :-(

 

[Trinity]

Each council is different so you need to speak to someone at yours specifically about what is required. As far as I know generally though a room that can be returned to it's original use without alteration is exempt. Your garage conversion would attract a rateable value as it is no longer able to be used as a garage, unlike a spare bedroom for instance that needed no structural alteration just the bed taking out.

Make an appointment with the council planning office and meet this head on, guessing, internet advice and 'what if's' are just worrying you more than it needs to :hug:

If the rateable value is applied it will only be to the garage conversion which will be a percentage of the house, so your council tax will be altered to reflect that. As an example if you have 10 rooms in your house of which one is the salon, 10% of your council tax would be business rates the rest the usual domestic rate.

I'm not sure why HMRC are interested in your 3for2 cabinet??? unless you're not returning a income tax return or paying taxes? That would be a different issue to the rateable value of the house/salon.

 

[kezza*]

I had been working from home for 5 years, when I first set up I rang the council and they said it was a grey area and that's long as it wasn't sourly used for just work and was still a use in the house it was fine. Last January I received a letter from a company saying that my local council have asked for them to come out and value for business rates and they gave me a date and time,,, I rang and they just said the woman was coming out,,, she did come out took a look around and said its fine as it looked like I wasn't doing much,,,, talking to her I asked if it was a new thing, she said that someone must have reported me and that they were making sure it was a whole beauty room etc. however I was getting really busy at home and felt I needed extra help so it gave me the push to open a salon,,,, that was a month after,, it,s going really well and it's the best move I made.

Hope all went well, and if it's a room that you still usage a computer room, etc it's fine.

 

[Nila]

Are you sure this man was from HMRC? Coming to your house and salon taking pictures???

About a year ago I had a phone call from a woman who said she was from council. She said she has noticed I was paying too much business rate. She wanted all my details and it turned out to be a scam!!! I checked the phone and the number was withheld!

 

[2012salon]

This thread has confused me lol
Sorry guys!!

I'm scared to ring my council as they are the most unhelpful bunches in London!

Can someone clarify for me - this is my scenerio...

I do nails mobile & part time in a salon.
I would like to work from home or start next year. The room is on the ground floor and was a spare bedroom. I have a clothes cupboard and a desk with two chairs and another polish drawer and open shelving with couple of products.

A). Do I pay business rates.
B). Do I need a special treatment licence?

Thanks xx

 

[squidgernetball]

You have to contact your local council as they are all different.
Sorry!

Vic x

Sent from my GT-I9505 using SalonGeek mobile app

 

[hazelb]

Sorry to sound the doubter in all this, but it all sounds a bit strange to me.

Are you sure it's not some cold call pitch? 'We want to check you are paying the right council tax'. They come round, measure up, take pics....then 'contact the council on your behalf to check you are paying the right council tax?' ....oh and then charge you for the privilege.

.....but then cash strapped councils may see it as a bit of an earner as well.

Make sure it IS the council you are dealing with.

My home treatment room was a bedroom and would be again if I put a bed back in it. The only visit I had from the council was to get my licence for skin piercing.

 

[Nails<3]

If they are saying that your ctax band maybe wrong then contact the valuation office.

All the rebanding gets done through them and we transferred all calls to them if there ever was a banding query.(Ex gov worker for ctax)

This sounds all too odd.

Also go onto to the valuation website and put in your postcode and it will bring up your whole streets banding so you can compare. Take into account properties that have had work done etc but you may get an idea.

Sent from my GT-I9505 using SalonGeek mobile app

 

[hazelb]

The bloke from HMCR valuation office has just been back to measure up, and take photos of my '3 for 2' cabinet, where I'm trying to sell products (that never sell)!

He said he is going to have to back date my rates to 2010!

our council have just written to them apparently a few weeks ago, asking them to have a look at my website, and to come round and assess. When I told them i was setting up from home 5 years ago, the council never told me i had to pay business rates. this man did say i can apply for a discount because I'm a small business.

Does anyone know if i will have to pay the full amount up front before i can apply for the discount?

i hardly make enough profit to live on as it is, never mind the government taking more off us.

he is also sending some other person round to look round our whole house to assess whether we are paying the correct council tax band. I think we are in a too lower band personally so they will probably back date that too!

i feel like closing down :-(

Just re-read this and it seems even odder!

HMRC are the tax man....they are interested in your tax return..nothing else. Not council tax or rates.. They will want to know your profit for he year.

The council asses your council tax..they are interested in if you are a business premises, residential premises or a bit of both. They would not be taking photos of your display stand!

You said a 'third party company' contacted you and 'said' the council asked them to do this?!!!!!

Do you have anything official from the council saying they are doing this ( in writing, on their headed paper? )

They say ' your council wrote to them and asked then to do it' ... yeah right!

Call the council..this doesn't seem right at all.