Rates for 2 businesses in one property - Help!

[REN77]

Hi there,

I am in a situation where two businesses will be operating in one premises. These businesses are both independent of each other. Currently the premises is occupied by one business receiving some business rates relief, rateable value being around £14500.

The premises is one unit, not separated by anything, both companies use similar resources & equipment, with occasional collaboration.

So my question is - how is it best to approach the rates?

Would both businesses get charged rates?

Does multi-occupancy incur additional charges?

I could do with some advice here & it seems hard to find!

Many thanks in advance,
R

 

[kulture]

The answer is in the question. It is one unit, not separated by anything. So it is one property and thus one rates bill.

As to who pays it, I would strongly suggest that this is detailed in the lease, or the split. Otherwise if it is not paid the council will likely go after whomever they think will pay.

 

[WaveJumper]

If you do not own the building, I assume your lease allows for subletting and you have the landlord’s consent. To get the rates bill split you would have to apply to the VOA. A lot of people would actual split the unit physically in half with wall etc and get both spaces re-valued which could bring down your bill considerably.

 

[ecommerce84]

Are the 2 businesses 2 separate legal identities - 2 Ltd’s or 1 sole trader and 1 Ltd?

It does sound like one of those situations where it would be easier to just have 1 company.

I feel that 2 will get complicated - as above, you need to have permission to sublet if you have a lease and if both businesses trade below the VAT threshold, this will raise eyebrows also, especially if they are sharing space and equipment.

 

[REN77]

Thanks for your responses.

I think I will go with what Kulture says - detail that one company pays the rates in the lease details.

Further info for questions asked:

Yes, there is Landlord's permission for the situation.

The 2 companies are owned by entirely different people, one is mine, LTD & VAT registered. The other is sole trader & not vat registered yet - but will likely be soon & also become limited.

Any further suggestions? Great info so far, thanks again!