Reply to: Business rates for detached garage conversion?

[TheCyclingProgrammer]

Thanks for all the input. Its somewhat of a moot point now as we decided not to offer on the property but its useful for future reference. I'm still hopeful we'll find somewhere with enough room for a nice dedicated garden studio/office (which I will pay for personally). I certainly wouldn't have a problem putting things like office furniture through the books etc. - when the time comes I'll talk to my accountant about what he feels is allowable.

[ASB]

Putting any direct costs through the company books sounds like a recipe for all kinds of issues to be honest, so I don't have any intention in doing that.

When I converted an attached dairy I put some costs through. Basically it needed a wall rebuilding and it was converted into an office/games room.

What I put through was:-

- all the furniture
- safe
- slate covering safe
- costs of building in safe
- flooring (in the upper portion of the dairy which was converted to dedicated office)

There were some other bits and pieces and some related building costs.

HMIT was fine in an investigation, just wanted to see it.

[d000hg]

Putting any direct costs through the company books sounds like a recipe for all kinds of issues to be honest, so I don't have any intention in doing that.

I agree, it's definitely best to make a gut decision before looking at the facts

[TheCyclingProgrammer]

Putting any direct costs through the company books sounds like a recipe for all kinds of issues to be honest, so I don't have any intention in doing that.

[eek]

Business rates for detached garage conversion?

BTW in one of the HMRC pages I saw when looking into use of home last(?) week in a forum thread, there was talk of being able to put part of the cost of the renovations through the business.

I very much doubt business rates factor in to what you want to do, you're really making a home office not business premises, but you might look into that if you're bothered by such things.

I really would be avoiding creating business premises if you can help it. If you do it will be a mare to get a remortgage

[d000hg]

BTW in one of the HMRC pages I saw when looking into use of home last(?) week in a forum thread, there was talk of being able to put part of the cost of the renovations through the business.

I very much doubt business rates factor in to what you want to do, you're really making a home office not business premises, but you might look into that if you're bothered by such things.

[northernladuk]

I think like most laws/rules, it relies on most people choosing to follow them most of the time.

It's certainly not outside the realms of possibility a neighbour might dob you in though - if they tried to something the right way and were denied then sour grapes might prevail. Or if you were the kind of person always in a spat with their neighbours (no names mentioned).

There's the issue when you come to sell, speaking purely amorally too. But people (maybe the majority) do do as they please. DIY types especially who think they are experts. A neighbour here has 'converted' her garage into a bedroom by gluing up the garage door!

+1 to all that and LOL @ the garage door

[d000hg]

I think like most laws/rules, it relies on most people choosing to follow them most of the time.

It's certainly not outside the realms of possibility a neighbour might dob you in though - if they tried to something the right way and were denied then sour grapes might prevail. Or if you were the kind of person always in a spat with their neighbours (no names mentioned).

There's the issue when you come to sell, speaking purely amorally too. But people (maybe the majority) do do as they please. DIY types especially who think they are experts. A neighbour here has 'converted' her garage into a bedroom by gluing up the garage door!

[TheCyclingProgrammer]

What has this got to do with anything? Do you want to know what you're supposed to do, or how to get away without doing it?

I obviously want to know what is correct, I was just wondering how it would even get queried in the first place. In other words, maybe I'm worrying over nothing.

[d000hg]

How would the council even know how it's being used though? It's not like I'll have clients visiting me so the neighbours should have no cause for complaint. There must be thousands of people out there using home offices and not paying business rates.

What has this got to do with anything? Do you want to know what you're supposed to do, or how to get away without doing it?

Just stick a computer on a desk in the garage as-is, no problem!

[TheCyclingProgrammer]

Cause you are a contractor!

I'm doing alright...I'm not doing *that* well though. Have you seen the prices of houses in the South East?! There's a reason we're moving out as far as Colchester. This is only our first house too.

[northernladuk]

What made you think we weren't getting a mortgage?

Cause you are a contractor!

[TheCyclingProgrammer]

Regarding the business rates. At present anything under £5000 rateable value is not charged for. It is then a sliding scale up to £15000 of relief. I have approx 2,500 sq ft and my rateable value is around £10,000 and I pay around £400per month business rates

Given that we'd be looking at a maximum of 150 sq ft, I don't suppose we'd be looking at much of a bill then?

[TheCyclingProgrammer]

You don't have to pay in cash you know. You could get a mortgage as well

What made you think we weren't getting a mortgage?

We have an AIP in excess of what we need to borrow but there's a difference between that and how much I'm willing to borrow. I don't want to exceed 80% LTV which we can probably manage, just, up to £270k if push comes to shove.

[Archangel]

Regarding the business rates. At present anything under £5000 rateable value is not charged for. It is then a sliding scale up to £15000 of relief. I have approx 2,500 sq ft and my rateable value is around £10,000 and I pay around £400per month business rates