Commercial property and business rates

[flanajb]

Given I have a lack of space here at home, and cannot afford to spend the £££££ to get a house with the land to enable me to build a large workshop, I was looking at buying commercial property. It seams to me that regardless of whether I am actually running a business from the premises I will have to pay business rates?

As to why business rates are not linked to actual turnover and profit is beyond me. If a business is just getting started, they need all the help they can get, and clobbering them with business rates that around here are equal to the monthly rent seems madness

 

[wobblycogs]

I completely agree with you. Business rates pretty much made my first business unprofitable even though I was hardly using the premises - I only had it because it was a condition of my suppliers. If you shop around you can generally find places where you'll get the business rates paid for a year or two or are rates exempt for a while, it depends on your landlord and or your local council. There's one that been popping up all over the country, Space Business Centres, that last time I checked did no rates for a year and the rents weren't too bad (some places you could even buy). To make things even better they were easy in, easy out rather than a long contract. It's certainly worth a look, I very nearly went down this route but things got tight on the money front.

 

[flanajb]

I completely agree with you. Business rates pretty much made my first business unprofitable even though I was hardly using the premises - I only had it because it was a condition of my suppliers. If you shop around you can generally find places where you'll get the business rates paid for a year or two or are rates exempt for a while, it depends on your landlord and or your local council. There's one that been popping up all over the country, Space Business Centres, that last time I checked did no rates for a year and the rents weren't too bad (some places you could even buy). To make things even better they were easy in, easy out rather than a long contract. It's certainly worth a look, I very nearly went down this route but things got tight on the money front.

Thanks. I think I need to do some research into this as I would really like larger premises, but to start with it will just for making my own stuff and playing around with ideas, so funds will be tight and paying business rates is something I want to avoid if possible

 

[wobblycogs]

It's well worth you having a chat with the council I think. If you aren't using it for commercial purposes you may be able to get a much lower rate, certainly if it stands empty you can get a big discount. I'm not sure how they would view using it for private projects though, my guess is you'd end up paying rates. Are you looking to buy or rent a place? I fancied buying a place as, unlike with houses, you can pick up a bit of a wreck that doesn't cost the earth.

 

[MIGNAL]

It would probably foolish to base Business Rate on profit. We all know that declared and actual profit are usually two separate entities. :shock:
You might be able to get small business rate relief. I work from home and the business rate is tiny. My insurance (not that much is covered) is much more of a factor.

 

[Matt@]

councils I think are currently offering NIL rates on rateable values below 6K. As I understand it, the rateable value is the rent figure. This offer ends April 2013 and has been an incentive for small businesses until now from what start date I dont know Seems this is a little known benefit and you have to apply for the exemption. I dread to think how many businesses have been paying rates when they dont have to. I think but am not sure that you have to be a sole occupier with no employees (not difficult in this game lol) If rates do kick in as an example - I rent premises cost £2100pa (750 sq feet) and my rates bill April 2013 onwards will be £66pcm

 

[wobblycogs]

The rateable value doesn't have to be the same as the rent although it is often the same. On cheaper premises it's not uncommon to find the rateable value is higher than the rent and it's damn near impossible to get the council to change it.