Starting a new business

[R1-Jay]

The wife and i are about to take on a lease for a horse yard in Surrey.

We are just finalising all our costings etc so we know how much we need to pull in every month to breake even, but something that just dawned on me and i've not yet asked anyone this, but i know we will have to pay our 'rates' but is this effectively the same as the council tax on a house?

[Eric Mc]

If you are running a bona fide business from dedicated business premises, you will be liable to Business Rates. Is what you intend to do regarded as a "business" or "agriculture" (they may be treated differently for Rating purposes).

[R1-Jay]

Not certain, we will be consulting our financial friend within the next few days to complete everything, but we were advised that the rates for the premises for last year was £600.

As this is our first business, i just dont want to miss anything and it comes back to bite us later on

[christmc]

Essentially yes the rates you pay are kind of council tax for business, although you dont get waste removal included in your rates for businesses.
It is calculated on the square foot used of the premises.

Its called rateable value , i pay 42p for every £1 of rent:

So weather you own or lease your building its only based on how much you could rent your premises for,

I own the building, but the rent would be circa £55,000 per annum so i pay 42p x £55,000 = £23,100 per year business rates.

The 42p can vary massivley depending on area and it may be different for agricultural businesses .