Business Rates

[The Soup Dragon]

We operate from 2 units that are knocked into one combined unit with RV 20K so we have a rates bill of roughly 10K pa.

The business has 3 separate functions / business lines one of which is about 50% of revenue.

I am thinking of splitting the business into 2 ltd companies and reinstating the units as 2 separate units, one business in each.

This would mean each business would qualify for business rates relief .................. in theory.

Does anyone have any experience of this situation?

SD

 

[dafcjim]

as long as there is two different signages, payroll and nothing linking each business together other then directors, this should be fine. Best to keep all bills to each, so if sharing waste bibs, only bill one company.
you may have one vat registered and one not. Obviously you would want most shared bills charged to the vat one.

 

[WaveJumper]

Sounds rather like artificial separation to avoid VAT you want to be very careful you don’t sail to close to the wind on that one

 

[The Soup Dragon]

Sounds rather like artificial separation to avoid VAT you want to be very careful you don’t sail to close to the wind on that one

Both businesses would be VAT registered so no VAT avoidance. The shareholder of the new business would be the other business.

 

[Gecko001]

Is there any way of increasing storage in your two units, such as installing a mezzanine floor or extending shelving to ceiling?