Business Rates on My Shed Workshop

Discussion in 'General Business Forum' started by Gone Home, Jul 15, 2019.

  1. Gone Home

    Gone Home UKBF Newcomer Free Member

    3 0
    Hello All

    I'm newly registered although I have lurked for a while and not entirely sure which part of the forum I should use.
    I am a commercial woodworker making specialist components for a hobby/interest group. Im not giving too much away at this point because

    I have just been asked by the council to have my workshop assessed for business rates. No idea where they found me

    The workshop is just a large garden shed in my back garden but it does have electricity. I don't receive any customers to it. Most of my work is done at the customers premises but I will do prep work in the shed or occasionally bring things back that need extra care. I also store things in a small separate shed along with the usual domestic junk, lawnmower etc

    Although I pay and NI as a self employed person it did not occur to me that my shed could be rateable.

    Does anyone have any thought or experience on this please?
    Thanks
     
    Posted: Jul 15, 2019 By: Gone Home Member since: Jul 15, 2019
    #1
  2. wispafish

    wispafish UKBF Contributor Free Member

    74 8
    You would probably get small buiness rate relief so just let them value it. Anything with a rateable value of less the 15k, doesnt pay rates. The valuation would only be done on the shed so chances are it wont cost you anything. Planning permission for the use of shed as workshop could be required though.
     
    Posted: Jul 15, 2019 By: wispafish Member since: Sep 4, 2011
    #2
  3. estwig

    estwig UKBF Legend Free Member

    12,195 4,255
    Tell 'em it's your hobby and they should sod off and mind their own business. Admit nothing, they get their teeth into you...........

    Feeling the luv from your neighbours.
     
    Posted: Jul 15, 2019 By: estwig Member since: Sep 29, 2006
    #3
  4. Gone Home

    Gone Home UKBF Newcomer Free Member

    3 0
    I have a website so its easy to see I'm a business otherwise I would
     
    Posted: Jul 15, 2019 By: Gone Home Member since: Jul 15, 2019
    #4
  5. Gone Home

    Gone Home UKBF Newcomer Free Member

    3 0
    I didn't know if it was whole house or just shed. I cant find anything on line to help.
    Thanks
     
    Posted: Jul 15, 2019 By: Gone Home Member since: Jul 15, 2019
    #5
  6. rach88

    rach88 UKBF Regular Free Member

    191 56
    It will just be the shed that they assess, assuming you're still using the rest of the house 'wholly or mainly' as living accommodation and not for your business. The house will stay in council tax.

    If the rateable value of the shed is under £12,000 (which I'm sure it will be!), and you don't pay business rates for any other properties, you will quliafy for 100% small business rates relief so I wouldn't worry too much.

    (Re the rateable value - these are based on rental value, so unless you think there is a chance someone would pay a rent of over £12,000 a year to occupy your shed you are safe!)
     
    Posted: Jul 15, 2019 By: rach88 Member since: Sep 4, 2013
    #6
  7. ecommerce84

    ecommerce84 UKBF Regular Free Member

    536 156
    The problem with having a rateable value of any amount, even £0 is that you still have a rateable value and therefore part of your property is classed as commercial.

    This could make selling the property difficult in the future as many mortgage lenders wouldn’t lend against such a set up. It would likely effect your insurance as you presumably have home insurance and not commercial insurance and you could even be liable for capital tax should you sell the house in the future.

    My advice would be to ensure that the shed is seen to be a standard residential shed upon inspection and you just use a small proportion of it to work from. Ensure you have lawnmowers, patio furniture, spades, forks etc in the main and a small corner where you work from. Obviously all of these things are easily ‘rearranged’ post inspection.

    Out of interest do you have any near neighbours? I feel it’s unlikely they would’ve clocked your activities from your website but have more than likely been ‘tipped off’.
     
    Posted: Jul 15, 2019 By: ecommerce84 Member since: Feb 24, 2007
    #7
  8. kulture

    kulture UKBF Legend Staff Member

    7,913 2,154
    I agree with ecommerce84, and would add that it would be useful if you could be working on some home diy when they inspect. Trimming a new door? or making a shelf unit for one room? or any number of other nice domestic tasks. You need to explain to them that your business is a hobby and the shed. See https://www.gov.uk/introduction-to-business-rates/working-at-home
     
    Posted: Jul 15, 2019 By: kulture Member since: Aug 11, 2007
    #8
  9. estwig

    estwig UKBF Legend Free Member

    12,195 4,255
    ecommerce84 has it spot on, you have to deny everything.

    Do you have planning permission for this commercial venture, don't let them get their teeth into you, once you put your hands up it won't stop at business rates.
     
    Posted: Jul 16, 2019 By: estwig Member since: Sep 29, 2006
    #9
  10. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,429 2,109
    Most likely caused by the noise upsetting neighbours, power tools do make a racket quite a way away from the shed, take advice above and maybe soundproof the shed to stop upsetting neighbours

    Make sure they understand you only work on customers properties and the use of the shed is your hobby
     
    Posted: Jul 16, 2019 By: Chris Ashdown Member since: Dec 7, 2003
    #10
  11. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    3,965 1,262
    I think they will be asking for a shed load if you have to pay business rates :):(
     
    Posted: Jul 16, 2019 By: JEREMY HAWKE Member since: Mar 4, 2008
    #11
  12. TheoNe

    TheoNe UKBF Regular Full Member

    135 14
    Like the previous contributors have already said, do your research and be quite guarded when they come calling, and I would definitely go with the 'hobby' line. I would temporarily take down the website until it has blown over. I wish you luck.
     
    Posted: Jul 16, 2019 By: TheoNe Member since: Jul 6, 2019
    #12
  13. kulture

    kulture UKBF Legend Staff Member

    7,913 2,154
    I would not lie to them. Perhaps exaggerate the residential use of the shed. But so long as you do not have customers visiting you there is nothing wrong with doing a bit of work at your home. As long as the shed or room you are using for business is not exclusive for commercial use and not likely to bother environmental health (noise, fumes, sawdust etc) you should be OK.
     
    Posted: Jul 16, 2019 By: kulture Member since: Aug 11, 2007
    #13