Homes Based Businesses
In England, your local property tax will be either Council Tax or Business Rates (sometimes referred to as non-domestic rates). This depends on your property type. Business properties are covered by business rates and domestic properties by Council Tax.
Some properties are partly for business and partly for domestic use, so you may have to pay both taxes, for example a pub and flat above.
What if you run a home based business?
When using your home for minor business purposes, the government does not normally expect you to pay business rates if:
- you use a small part of your home for your business (eg a bedroom - for part of the day as an office)
- you don't use it to sell goods or services to visiting clients or members of the public (as opposed to selling by post)
- you don't employ other people to work at the premises
- you don't make alterations that are not for a domestic purpose (such as converting a garage into a hairdressers, or installing a hydraulic car lift)
These are only general guidelines, if you have a specific query, please feel free to contact the Valuation Office.