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Business Rates to be imposed on Homeworkers
Once again – our crafty government are imposed yet another new "stealth tax".
Hidden away in Alistair Darlings recent budget proposals are plans for local councils to be given powers to impose business rates on home workers. Basically anyone working from home will be subject to paying business rates on a proportion of their property. This will be over and above the normal council tax already paid for that property. In effect, any rooms used in a house by anyone to run a small business will become subject to business rates at the normal pro rata rate.
Councils will also be recruiting inspectors to ensure these new system is properly policed. Council "Hot lines" will be set up allowing anyone who suspects a neighbour to be running a business from home to report them anonymously to the new rates team. These inspectors will also be given the power to enter a persons house at will to verify the number of rooms that may be used in running a small business.
Business owners that run from commercial property and already pay business rates shouldn’t be feeling smug though as the new scheme will apply equally to anyone working from home. This means that if you fill in your tax return or work on a customers design in the evening (while at home) you will also be eligible to pay the business rates on any rooms used in your house even if you are already paying business rates on your commercial property.
The new bill is due to take effect as from May 2009.
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7 Replies
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That reminds me, it’s April 1st 😉
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This isn’t an April’s fool is it Phil?
Steve
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Ah well that’s me b@ggered then, all my neighbours hate me……
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April fool or not it happened to me..
I have large workshops out the back of my property as well as a large parking area where my wife parks her ice cream vans… someone grassed us up to the council and they came around to do an inspection for rates. We now pay commercial rates on part of the out buildings and also the parking are.. On the plus side we got a reduction in our house rates as it is now classed as being next door to a commercial property!!!!
It has ended up only costing a £150 a year more with everyting now being fully legal and above board!ian
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Although the net is full of April Fools stuff, this sounds just like Alistair Darling. Tories in disguise!
Apparently it’s always been the case…
"More and more people are working from home. If you’re one of them, you might have to pay business rates on the part of the property you use for work. You will continue to pay council tax as usual on the rest of your property. However, the amount you pay on that part of the property may reduce.
A number of factors will determine whether the space in your home used as an ‘office’ will be liable for business rates. These will include the extent and frequency of the business use of the room (or rooms) and any special modifications made to the property. Each case is considered individually, usually through a visit from your local Valuation Office – which you should contact for further details. If your property needs to be assessed for business rates, your Valuation Office will work out a rateable value for the part used for non-domestic purposes."
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What I find scary is not only is the government effectively penalising anyone that chooses to bring work home with them , but giving power to inspectors to enter peoples homes to check on their business activities. Not only that but encouraging neighbours to spy and "snoop" on other neighbours suspected of working hard and trying to build up a business from home.
It’s becoming more and more like Hitlers Germany in the late 1930’s 😕
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APRIL FOOL
Okay no one was biting anyway 😳
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