Business Rates for industrial unit with possible retail section

[Ally7118]

Hi, I rent a fairly large unit from a private landlord who owns the industrial estate on which it is based. At the moment it's used as a workshop for manufacturing our products which we generally supply to trade. Rateable value is around £11.5K so I get small business rate relief so don't pay rates. If I were to turn around 1/3rd of part of the unit into a retail area selling our products direct to the public, would my rateable value go up? Would not involve any major renovation or changes to the unit. The unit is on an industrial estate with other units (90% of which are manufacturing or car repair shops etc) and not high street. Are retail rates more than a workshop rates and how would this affect me? How do the council assess ? Wouldn't want to do this, then get re-assessed with a huge rates bill! Thanks all.

 

[WaveJumper]

One of the first things I would suggest is you need to have a conversation with your landlord re a change of possible use and find out at the same time what actual class the unit is being accessed under currently. Depending on the latter It's then probably going to be a conversation with your local planning authority re any planning permissions etc that could be required before you start laying out any money ...... but start with your landlord

 

[Ally7118]

One of the first things I would suggest is you need to have a conversation with your landlord re a change of possible use and find out at the same time what actual class the unit is being accessed under currently. Depending on the latter It's then probably going to be a conversation with your local planning authority re any planning permissions etc that could be required before you start laying out any money ...... but start with your landlord

Thank you for the reply. The unit is classed as a workshop at the moment. We wouldn't be doing any structural or even any internal renovation or changes. Just moving our products about. Any further advice would be welcome. Many thanks.

 

[Chris Ashdown]

We called our retail area a trade counter and had no problems with rates, there appears no difference who you serve from a trade counter

 

[Lucan Unlordly]

I'd be very cautious about using the word retail when talking to the appropriate parties. It conjures up images of extra traffic, unsocial hours - weekend opening etc.,

If you are looking to put stock on the shelves and encourage customers to grab a basket and browse you'll almost certainly hit a brick wall with the planning and rates departments.

If you smarten up one part of the building and turn it into a showroom with 'trade' counter you should be ok. Only you would know who was trade and who was a general public customer.

What do you manufacture?

 

[Lucan Unlordly]

We called our retail area a trade counter and had no problems with rates, there appears no difference who you serve from a trade counter

LOL we've posted the same thing at the same time but I applaud your ability to say it in one sentence.

 

[Ally7118]

Thank you everyone, very helpful.