Business rates are one of the various expenses that you need to be aware of when you start or expand a business.
What are business rates?
Business rates are collected by local authorities and these rates are based on the value of non-residential properties. Although business rates are collected locally, they are used nationally to pay for council run services.
You will usually have to pay business rates if your business is carried out in a non-residential property such as a:
Business rates are paid to your local council, they relate to the tax year (April to March). The council will issue you a bill in February or March each year and this will include details on how to pay.
Do I need to pay business rates if I work from home?
If your business is home based, you may need to pay business rates in addition to council tax. This applies to properties that are part business and part domestic, or if you sell goods or services to people who visit your property, or you employ people to work at your property.
You don’t usually have to pay business rates for home-based businesses if you:
use a small part of your home for your business, e.g. you use a bedroom as an office
sell goods by post.
You may need to pay business rates as well as Council Tax if:
your property is part business and part domestic, e.g. if you live above your shop
you sell goods or services to people who visit your property
you employ other people to work at your property
you’ve made changes to your home for your business, e.g. converted a garage to a hairdresser’s.