When are business rates applicable for a home business

[Onthebrightside]

Whilst this is all very interesting, no-one has actually answered the original question, which I have quoted above.

Assuming the converted garage has planning permission and assuming that business use is permitted, the simple fact that the property (garage) is still being used in part for residential use, business rates do not apply.

Thank you @kulture. Yes he got planning permission and yes the the use is permitted. So as long as part of the garage is still being used for residential use (i.e. there's a tumble dryer in it and a drying frame etc.) means that business rates do not apply?

 

[kulture]

Thank you @kulture. Yes he got planning permission and yes the the use is permitted. So as long as part of the garage is still being used for residential use (i.e. there's a tumble dryer in it and a drying frame etc.) means that business rates do not apply?

It is difficult to say with any certainty. Each case can be determined individually. Certainly the more the room is used for domestic/residential purposes the less likely it will be rated. If someone from the VO comes round to value it, you would need to emphisise the limited time it is used for business personal training and maximise the time it is used by the family and what it is used for.

Even it it is decided to be on the rates list, the valuation is likely to be low and you can apply for small business rate relief and get a 100% discount.

 

[Onthebrightside]

It is difficult to say with any certainty. Each case can be determined individually. Certainly the more the room is used for domestic/residential purposes the less likely it will be rated. If someone from the VO comes round to value it, you would need to emphisise the limited time it is used for business personal training and maximise the time it is used by the family and what it is used for.

Even it it is decided to be on the rates list, the valuation is likely to be low and you can apply for small business rate relief and get a 100% discount.

Thanks for your help @kulture and thank you to everyone who pitched in here with links etc. to help. I'm grateful for the info and your help.

 

[Lucan Unlordly]

From an online forum c.2012, in response to a thread about noise from home gym being used for business.

'I run a fitness business from my house. Planning obtained from council, declared to HMRC and fully insured. I am not registered at companies house. Why? Because I am a sole trader. What makes you think that this business isn't the same?

Unlike this business you are talking about, I try my hardest to keep the noise to a reasonable level and at reasonable times.

Some of my client base drive here, some come by bus and some are close enough to walk. For me parking isn't an issue, but I have a plan that I will ask ALL clients to park on a nearby (but less residential) road if parking becomes an issue. Could they do the same?

From the noise perspective, is it music, shouting or equipment banging?

I have not had any complaints, but I think human nature would make me much more receptive tp some possible solutions, rather than someone just telling me I annoyed them and that I should stop.'

 

[estwig]

I luv doing plans for people, I like working in householder planning, it teaches you an awful lot about people. What lot of people do is the following in exactly this order.............

1. They decide they want something, an extension, a loft conversion, run a business from home, an office in the garden, whatever.
2. Then they decide they either don't need permission to do it, or permission will be forthcoming.
3. Then they justify their belief by trawling the Internet, or looking around at what other pole have done with their houses, or talking to Dave down the pub.

The decision process is absolutely bonkers, but so many people do this. In a way it's beautiful simply because it's mad.

 

[kulture]

I luv doing plans for people, I like working in householder planning, it teaches you an awful lot about people. What lot of people do is the following in exactly this order.............

1. They decide they want something, an extension, a loft conversion, run a business from home, an office in the garden, whatever.
2. Then they decide they either don't need permission to do it, or permission will be forthcoming.
3. Then they justify their belief by trawling the Internet, or looking around at what other pole have done with their houses, or talking to Dave down the pub.

The decision process is absolutely bonkers, but so many people do this. In a way it's beautiful simply because it's mad.

Don’t for a second, assume the planning process any less bonkers than this. Sometimes the decisions of planning officer seems completely contradictory from one house to the next. therein lies the problem, it is so complicated it is possible to get completely opposite decisions based on the same facts and the same legislation and the same regulations.

 

[Onthebrightside]

Our planning permission for our back extension came through early!

We're just smaking a big extension on the back of our house. Our plan is the future proof the downstairs so that it's wheelchair friendly. Our hope is that we can remain in our house should anything happen. Having cancer a few years back was a big shock to me how difficult it was to get up the stairs after treatment - I just didn't see it coming. So now we want to make sure it doesn't happen to us, just in case and for when we're older.

We got an architect in (lovely chap) and he made some plans. First thing we did was get the neighbours round for a cup of tea to show them what we were doing, how far out the roof would come and where the shower room, untility etc. would be and explain why we were doing it. They were fine and we went for planning permission.

Out of the blue one day the planning officer just turned up, walked around the back garden and said we'd have our response in a week (3 weeks early!). I asked how that was and she said they were trying to clear a backlog by getting rid of the easy ones. Sure enough we got our permission granted.

 

[Bob Morgan]

Forget 'Precedent' when it comes to Planning Permission!

 

[Lucan Unlordly]

I've been involved with several applications over the years, all but one requiring a change of opinion from the powers that be.

The one that stands out was the building of two houses on the site of 8 lock up garages. We had to take that way above the local planning dept. The initial decision to refuse was taken by a single inspector, which set the tone for an uphill struggle.

Second was an extension on a community centre. Hostile reaction from the neighbours as it projected beyond the building line. Indifferent response from Highways as the site bordered onto a busy mini roundabout. Refused twice, we withdrew the application and moved on. 3 years later the Mayor became Chairman of the Community Centre and the extension was built.

Third, the refurbishment of a small hall in the centre of a council owned park. Unused, vandalised and falling into disrepair. It took 3 years to get a positive decision. One man stood in the way.

All of the above delays were affected by the undue influence of individuals who knew, or thought they knew, planning law better than their associates on the various committees. Nothing is set in stone.

 

[estwig]

Forget 'Precedent' when it comes to Planning Permission!

The LPA might say..........We know we've made mistakes in the past, we are drawing a line in the sand, here!

There is no such thing as precedent, just because your neighbour got permission, doesn't mean you will!

 

[estwig]

From an online forum c.2012, in response to a thread about noise from home gym being used for business.

'I run a fitness business from my house. Planning obtained from council, declared to HMRC and fully insured. I am not registered at companies house. Why? Because I am a sole trader. What makes you think that this business isn't the same?

Unlike this business you are talking about, I try my hardest to keep the noise to a reasonable level and at reasonable times.

Some of my client base drive here, some come by bus and some are close enough to walk. For me parking isn't an issue, but I have a plan that I will ask ALL clients to park on a nearby (but less residential) road if parking becomes an issue. Could they do the same?

From the noise perspective, is it music, shouting or equipment banging?

I have not had any complaints, but I think human nature would make me much more receptive tp some possible solutions, rather than someone just telling me I annoyed them and that I should stop.'

This is where people get confused about planning, these are matters for full planning permission, what is being discussed in this thread are householder planning applications.

There are literally hundreds of different types of planning application that can be submitted, planning is a massive issue effecting almost walks of life. Each type of application has it's own criteria and to an extent it's own department within the LPA.

 

[Bob Morgan]

This is where people get confused about planning, these are matters for full planning permission, what is being discussed in this thread are householder planning applications.

There are literally hundreds of different types of planning application that can be submitted, planning is a massive issue effecting almost walks of life. Each type of application has it's own criteria and to an extent it's own department within the LPA.

I wonder how many are aware of the 'Planning Chaos' that exists at the moment? - Caused largely by a certain Mr Gove 'Tinkering' with something that he knew bugger-all about!

 

[Bob Morgan]

The LPA might say..........We know we've made mistakes in the past, we are drawing a line in the sand, here!

There is no such thing as precedent, just because your neighbour got permission, doesn't mean you will!

A few years back, I had a project for a retired brother and sister. Two Bungalows, on individual plots, in an area of Bungalows. It was same Local Authority, and the same Planning Officer. Both had an Officer Recommendation to Approve. However, at Committee Stage, one was granted Planning Permission, the other was refused. Eventually Permission was Granted on Appeal.

 

[estwig]

A few years back, I had a project for a retired brother and sister. Two Bungalows, on individual plots, in an area of Bungalows. It was same Local Authority, and the same Planning Officer. Both had an Officer Recommendation to Approve. However, at Committee Stage, one was granted Planning Permission, the other was refused. Eventually Permission was Granted on Appeal.

For it to go to committee, either someone publicly complained, or possibly someone leaned on a councillor in the background.

I hate it when councillors slope around in the shadows on applications, stand up show yourself! But no, they ain't got the bottle, so they lean on planning without showing themselves.

 

[Lucan Unlordly]

I knew one of the local Planning Officers who was able to give me some off the record direction. The reason our application was initially refused was because the officer making the decision was a few weeks away from moving on to another role and wanted to leave behind a clear desk! Had our application fallen on his desk first he would have approved it. That without knowing my connection. Crazy!

We engaged the services of a planning advisor who he said had a fearsome reputation for tying the department in knots.

 

[UKSBD]

Change of use of agricultural buildings was/is the biggest mess

Poorly written out legislation enabling people to find loopholes, thus getting permission to convert buildings that the legislation didn't really intend to be converted.

 

[Nicola78]

Business rates are a tax on non-domestic properties in the UK. If you are running a business from your home, you may be liable for business rates if your property is deemed to be non-domestic.

Whether or not you have to pay business rates depends on several factors, including the type of business you are running, the amount of space you are using for business purposes, and the level of business activity at your property.

If you are running a business from home, you may be exempt from paying business rates if:

1. Your business uses only a small part of your home for business purposes, such as a home office or workshop.
2. You are the only person working from your home, and you do not receive any business visitors or customers at your property.
3. Your home is your primary residence, and you are not using it solely for business purposes.

However, if you are using a significant amount of your home for business purposes, such as running a bed and breakfast or a daycare center, you may be liable for business rates.

It is always best to check with your local council to determine whether or not you are liable for business rates, as the rules and regulations can vary depending on your location and the type of business you are running.

 

[aqfsports]

I've a mate who's using part of his house (a converted attached garage) as a gym to start a business in personal training.

Are business rates currently liable if part of that space is being used for household purposes, such as a tumble dryer?

Thanks to anyone who can offer any advice.

It's great to hear that your mate is pursuing his passion for personal training and using his converted garage space to start his business. In regards to your question, business rates are typically only applicable if the space is being used primarily for business purposes, and not for household purposes such as a tumble dryer. However, it's always best to check with the local council or a qualified accountant to ensure that your friend is meeting all the necessary requirements and obligations for running a business from his property. Good luck to your friend on his personal training business venture!