Business Rates

Business rates are taxes that you have to pay on top of council tax for the premises that you work from. They are charged similarly to council tax in advance of the upcoming tax year. Some examples of non-domestic premises include:

• Shops & cafes
• Pubs
• Warehouses
• Holiday homes that you rent out
• Factories

However, some premises are exempt. These include:

• Agricultural land buildings
• Buildings used for training
• Buildings used for the welfare of disabled people
• Sites registered for public religious worship
• Church halls
• If a building has been empty for more than three months, you won’t have to pay business rates on them.

Generally, you won’t have to pay business rates if you are self-employed and use a room in your home as an office and sell goods by post. If, however, you have customers visit your home, such as buyers or clients who visit your home for haircuts, you may need to pay a proportional rate. Whilst it is up to you to work out your rate, your calculations must be deemed ‘reasonable’ by HMRC.