Do you have to pay business rates if you are not trading?
Business rates for empty propertiesYou usually have to keep paying business rates even if your property is empty, but you do not normally have to pay anything for the first three months. Some buildings and businesses may be given more time than the standard three months exemption.
Business rates are charged on most commercial (non-domestic) properties such as shops, offices, pubs, warehouses, factories, holiday rental homes or guest houses. If the property is empty there is still a charge in most cases, and the owner/leaseholder/freeholder must pay this.
You may be able to get relief if your property is empty and unused. Since 1 April 2008, empty business properties have been exempted from business rates for the first three months that they are empty. Industrial and warehouse properties qualify for a further three months' exemption from business rates.
The occupier of the premises is responsible for paying business rates. This will usually be the owner or the tenant. Sometimes the landlord of the property charges the occupier a rent that also includes an amount for the business rates.
How to AVOID Council TAX & BUSINESS RATES - LEGALLY!
Do individuals pay business rates?
Who has to pay the business rates? The occupier of a non-domestic property normally pays the business rates, usually this is the owner-occupier or leaseholder. If a property is empty, the owner or leaseholder will have to pay a reduced rate.
If you have a Business Rates refund to claim, you will need to complete and return the Refund Application Form that will be provided with your credit bill. Should you be entitled to interest on your Business Rates refund, then this will be calculated automatically when your refund is issued.
In general, you do not have to pay business rates for the first three months (six months for industrial or warehouse property) if your property is empty. After that, you pay the full amount.
Business rates (sometimes called commercial rates) are a tax levied on business properties. The money collected is channelled by local authorities into services such as police, fire and waste management, in much the same way as council tax.
If you're eligible, you could get: 50% off your business rates bills for the 2022 to 2023 tax year (April 1, 2022, to March 31, 2023). 75% off your business rates bills for the 2023 to 2024 tax year (April 1, 2023, to March 31, 2024). The most you can get in each tax year is £110,000 per business.
Sole traders pay income tax, as do partnerships (with partners submitting separate tax returns), and also Employees' National Insurance contributions. Limited companies pay corporation tax. You may also have to pay business rates on your premises.
Do you need permission to run a business from home?
Planning permission is not usually needed where part of your home is used for business purposes. This is if its overall character does not change. However, you may need to apply for full planning permission to work from home if: your home is no longer used mainly as a private residence.
Changes in the local area may impact the valuation. For example, a new housing development may have increased a shop's customer base and the amount it could be rented for. These factors are all reflected in your rateable value. Most properties are valued by comparing rental evidence.
A dormant company is one that is not trading and has no accounting transactions, but when you form a dormant company it means that no-one else can form a limited company with the same name.
The status of a non-trading company will usually be attached to a company that has previously traded, yet has now paused its responsibilities or processes, resulting in inactive movements. However, down to previous financial commitments, corporation tax will need to be paid, for active accounts from trading periods.
Current guidance says that you are not normally required to pay business rates if your home-based business: Only uses a small part of your domestic property (home) to operate from. Sells goods online and dispatches them through the post.
'Business rates' is the term commonly used for non-domestic rates which are charged on most non-domestic premises, including most commercial properties such as shops, offices, pubs, warehouses and factories. It's an annual charge, usually paid in ten monthly instalments from April to January.
You don't have to pay rates for the first 3 months a property is empty, or for the first 6 months where the property counts as qualifying industrial premises. To start a new rate-free period, the property must be occupied continuously for six weeks before becoming empty again.
Applications for small business rates relief are generally backdated up to 6 years in line with the Statute of Limitation Act 1980. Small Business Rates Relief can be backdated to 1st April, 2012 provided the Ratepayer meets the eligibility criteria.
If you are a dental practice owner who holds a contract for dental services with the NHS, you can apply for a reimbursement of your 2023/2024 business rates. There are certain qualifying conditions you need to meet. You can check if you are eligible here.
