What do business rates include?

Business rates are taxes designed to help fund services in your local authority. The government charges business rates on properties like offices, shops, pubs, and warehouses – most non-domestic properties will attract business rates.

What services do business rates pay for?

Your rates are not a payment for specific services but are a contribution from businesses towards all of the services provided by the Council for the community, such as local transport, education and housing, all of which indirectly benefit businesses in the area.

Do business rates include rent?

Occupied properties

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.

Do you pay business rates annually or monthly?

You are entitled to pay business rates by monthly instalments or quarterly, half-yearly or annually. The instalment arrangement is set out on your bill. Payment methods available are detailed below.

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How do I avoid business rates?

You are exempt from paying business rates in England if you own any of these property types, regardless of whether or not it is empty:

  1. Fish farms, agricultural buildings, and structures where the main purpose is agricultural in nature.
  2. Property used for training or the welfare of disabled people.

How do I find the rateable value of my property?

The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date.

Does a landlord have to pay business rates on an empty property?

Empty-property rating

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.

Who is responsible for registering a property for business rates?

The person or company named on the lease agreement, tenancy agreement or license agreement will be responsible for paying the business rates. They will be deemed responsible even if they are not trading from or occupying the property.

Do all businesses pay business rates?

Who has to pay? In most circumstances occupiers of properties that are entered in the Valuation Office Agency’s (VOA) business rates lists must pay. Business rates are charged on most commercial (non-domestic) properties such as shops, offices, pubs, warehouses, factories, holiday rental homes or guest houses.

Are business rates an expense?

The expense of business rates is an expense of the business and deductible for tax purposes, subject to the normal rules.

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Is business rates an expense or revenue?

If you pay business rates they are an allowable expense for tax purposes.

Who pays business rates the landlord or tenant?

Who pays business rates – the landlord or the tenant? When a commercial property is occupied, the tenant is responsible for paying business rates. In some cases, the landlord will pay the rates on behalf of the occupier and include the amount paid within the rent.

Are business rates higher than council tax?

Business rates are local taxes paid by the occupiers of all non-domestic/business property, in the same way that council tax is a tax on domestic property. Business rates are charged on most business properties such as shops, offices, pubs, warehouses and factories.

Are business rates tax deductible?

This can serve to phase in any increases to your business rates bill, and should apply automatically. Remember too that business rates are a tax deductible business expense, so you can deduct the cost of paying them from your profits before calculating your tax.

Do you pay VAT on business rates?

Whilst most businesses in the UK charge VAT at the standard rate of 20% there are a number of different VAT rates and exemptions to be aware of. … Exempt – where no VAT is charged on the supply.