Business rates on storage containers

[robgreen999]

Hi, I was just wondering if someone could give me some advice please? I run a small e-commerce business from my home, and was just wondering if I have to pay business rates on storing items in storage containers? We're in a semi-rural area in a domestic property on a few acres of land, and have a couple of containers on the land (well, they're actually lorry bodies, the 'box' part taken off a lorry). They're non-permanent structures, about 8m x 2.5m, and I can't imagine they really have any value as such. We already had a couple here, which I've now put to use for my business, but I don't want to get hold of any more and then find out down the line that I've got to pay a huge amount each year in business rates. If business rates would apply to them, would it make a difference if they were partly used for personal use? Any help would be greatly appreciated!

Thanks,
Rob

 

[GraemeL]

I suspect you are on dodgy ground. While no-one will might have noticed a couple of boxes on a few acres of land, they will most probably require planning permission - or else we would see fields of them everywhere.
Here is a non legal guide that relates to shipping containers but in essence they are 'portable' storage units as yours are. http://www.budgetshippingcontainers...planning-permission-for-a-shipping-container/

 

[robgreen999]

Thanks for your reply. I think that planning permission will mostly apply to solid steel storage containers, and/or if people are using them to live in, so I'm not too concerned about planning permission. They aren't in an area of natural beauty, or even in view from the road or neighbours, so I don't think that will be an issue. To be honest, if you keep your eyes peeled when driving through rural areas, you'll often see farms or other pieces of land with several containers dotted about. I bike a lot, and see them all the time, and it would't be out of place to see 5-10 of them together somewhere. Obviously though, I think if it was a ridiculous amount then it might be a different story.

Does anyone have any insight into whether these units incur business rates?

 

[Chris Ashdown]

We had a local couple who had a bungalow, they then put a 40 ft mobile home in there garden for their grand parents to live permanently in with power, water and sewage fitted via the bungalow
They paid no extra rates as a mobile unit

 

[Pembroke99]

Presumably you're paying business rates for that part of your property that is already used in the course of your business? Although as a small enterprise you probably get 100% discount anyway?

As to the containers having value, well technically they are valued at the cost of storage elsewhere. So if offsite storage was £200 per month then that's their value.

If you have any doubts you really should make enquiries of the Valuation Office Agency or your local council. While you may not need planning permisssion you might need buildings control to make sure the containers are safe. Do they have electric lighting in them for instance?

 

[robgreen999]

We had a local couple who had a bungalow, they then put a 40 ft mobile home in there garden for their grand parents to live permanently in with power, water and sewage fitted via the bungalow
They paid no extra rates as a mobile unit

Okay thanks, that's worth noting. Do you think the same rules will apply then, in terms of council tax for mobile units used for domestic purposes, and business rates for mobile units used for business purposes?

 

[robgreen999]

Presumably you're paying business rates for that part of your property that is already used in the course of your business? Although as a small enterprise you probably get 100% discount anyway?

As to the containers having value, well technically they are valued at the cost of storage elsewhere. So if offsite storage was £200 per month then that's their value.

If you have any doubts you really should make enquiries of the Valuation Office Agency or your local council. While you may not need planning permisssion you might need buildings control to make sure the containers are safe. Do they have electric lighting in them for instance?

Well, I pretty much run my ecommerce business from my laptop in the kitchen, which is obviously mainly used for domestic purposes. So, I've always just assumed that it would be exempt from business rates, if that's correct? The lorry bodies don't have any lighting, gas lines, electrical cables etc, they're simply a box, and with them not being a built permanent structure as such I figured that there wouldn't be any applicable building regulations?

 

[Chris Ashdown]

The bodies no doubt would be classified as garden sheds as they fulfill the same function

 

[Helpneededfast]

We had a unit on in industrial park that also had containers, if you had a container you paid no business rates, as they were under private agreements for home storage and not for business. We also had it written in our tenants agreement that the business rates were included in the monthly rent. However it did appear that the landlord was keeping the business rates and not passing them on! We sent the agreement and the business rates went away.