industrial unit for private use, regulations

[fatjon]

If I hire a small indistrial unit for my private hobby do I have to conform to all the miriad of health and safety regulations and other "red tape" which would apply if it were being used for business purposes. Also does anyone know the position on business rates when it is not a business?

The way I see it, it is pretty much the same as if I am working in my garage at home, just bigger, but is this the real legal position? It's not to say that I would want to be unsafe, common sense dictates that I have a couple of suitable fire extinguishers and don't cause pollution but am I going to get some council type coming round and telling me I need a disabled toilet, an access ramp and that I can't weld unless I get wrapped up in wet cotton wool and wear a full space suite?


Hope someone can advise.

Jon

[dilbert]

I have a feeling there is some issue with respect to planning permission, if you want to change the rating type.

Even if you don't have buildings insurance, someone will.

I'd have said that they will be a bigger problem, because you're using the building in a different way to that which they expect.

[Digga]

You'd need to see the terms of the headlease to check what working time restrictions there may be. A lot of industrial estates have these and also have clauses relating to what you can store or park outdoors.

As for business rates, I'd guess they're still payable - basically nowadays, all property which is in some sort of use is liable to taxation.

You should, however, be okay as far as the HSE are concerned, as long as your activities are confined to the unit and do not create and sort of pollution - noise, fumes, smoke, shrapnel, gremlins - which may casue inconvenience or hazard to neighbours or passers by.

[skwdenyer]

Digga said:

As for business rates, I'd guess they're still payable - basically nowadays, all property which is in some sort of use is liable to taxation.

As of last year, property which is not "in some sort of use" is now liable, too, after a six-month grace period.

Thousands of buildings are getting demolished around the country to avoid this, which will be handy when we need buildings for entrepreneurs to start businesses to lead us out of recession...

[a boardman]

there is a small garage unit (even had ramp installed) behind my house, It came on the market for sale.

I made enquires to the council and they told me business rates would be payable even if it was for my own private use.

But if I was a small company it would be possible to see if a rate reduction was possible, but I would have to apply but no promises that it would of been reduced.

I never went though with buy it because of this.

[singlecoil]

a boardman said:

there is a small garage unit (even had ramp installed) behind my house, It came on the market for sale.

I made enquires to the council and they told me business rates would be payable even if it was for my own private use.

But if I was a small company it would be possible to see if a rate reduction was possible, but I would have to apply but no promises that it would of been reduced.

I never went though with buy it because of this.

I know you can (used to ) be able to get a rates reduction on rented premises if the rent was less that £10,000 a year, sliding scale down to something like 50% reduction at £5,000. Maybe there would be a way of getting that applied to owned premises.

[Chrisgr31]

singlecoil said:

a boardman said:

there is a small garage unit (even had ramp installed) behind my house, It came on the market for sale.

I made enquires to the council and they told me business rates would be payable even if it was for my own private use.

But if I was a small company it would be possible to see if a rate reduction was possible, but I would have to apply but no promises that it would of been reduced.

I never went though with buy it because of this.

I know you can (used to ) be able to get a rates reduction on rented premises if the rent was less that £10,000 a year, sliding scale down to something like 50% reduction at £5,000. Maybe there would be a way of getting that applied to owned premises.

If the unit actually bordered your house/garden then it should have been possible to ask the VO to take it out of the Rating List as it was in domestic use. However it might have resulted in an increase in your Council Tax band so care needs to be taken!

If a store/workshop etc is used solely for domestic use but doesn't border your house or garden then it is extremely complicated and there is no certainity that you will be exempted from rates. If you want to look it up have a look at the Local Government Finance Act 1988. What you will find is that all property is commercial unless it is domestic! And the definition of domestic property is in theory simple but also complex!

The Rateable Value represents the annual rental value of the property as at 1 April 2003, and there is a revaluation next year which will be based on rental values as at 1 April 2008. So in theory your rent is a good indication of the RV. Rates are payable based on a multiplier which I can't remember right now but its around 45p in the £.

If the RV is less than £10,000 and it is your sole business property (even if used domestically!) then there is a sliding scale of relief maximising at 50% for a RV of £5,000.

You can appeal the RV if you think it is wrong, and be prepared to be told lots of times by the VO that its right! You can appoint an agent to help reduce the RV, but ensure you pay on savings in rates payable only, and ensure there is no admin fee, or fee for successfully submitting a proposal.

If the original OP wants me too I can look at this further if given more details including the RV of the building.

[fatjon]

Thanks All for the very detailed and informative answers. Much appreciated.