Yard / workshop location

[Dannyjack]

Hi all was just wondering how many people use their own property as a workshop & yard and what the pro's and cons are. My garage is fairly large and I can build a decent size log store but what would the insurance & business rates be like in comparison to renting a yard & workshop?

[richy_B]

My understanding is business rates are assessed on a combination of square meterage, type of 'space' (soft surface, hard standing, covered, steel framed building, brick building, etc) and then you get a multiplier based roughly on what you do/use it for.

 

I imagine it varies locally quite a bit. For me 'covered storage' ie somewhere to park your machinery, had a rateable value of 17.50. If I used the same space as 'workshop' it was 32 per square metre. My multiplier was something like 0.48.

 

There is an exemption for small businesses with only one premises when the value is under £6k. Then a sliding scale between 6k and 12k.

[richy_B]

I doubt it makes a huge amount of difference whether it is your home or rented from a rates perspective. The big difference will be in corporation tax. If you are paying a mortgage then the repayments are not tax deductible but the interest is. If you rent this is 100% deductible. The last thing would be does you mortgage, if applicable, allow the property to be used for commercial use.

[AardvarkTreeServices]

There will be 1000's using their own workshop for business use without notifying the authorities. If you're not likely to be causing a regular nuisance and upsetting neighbours, then just get on with it.

 

Dont know where you are but small rural businesses in Wales currently have 100% rate exemption so its not like you're taking cash out of the council coffers if you have a similar exemption.

[Dannyjack]

As luck would have it I'm in Wales! Thanks all I think it's a home workshop for me...