Working from home has a lot of perks. You get to stay home on rainy days, no need to attend official meetings or have to deal with colleagues invading your personal space, save money on travel expenses and the best thing yet- no need to dress up.
With this shift in the traditional work environment, questions have arisen regarding the eligibility of individuals who work from home to receive business water rates. This topic delves into the factors that determine whether you qualify for business water rates while working remotely, exploring the regulations, considerations, and potential benefits associated with such eligibility.
As businesses and individuals continue to adapt to remote work practices, it becomes crucial to understand the implications for utilities such as water usage. Traditional business water rates are typically designed to cater to the higher consumption levels of commercial enterprises, taking into account factors like peak demand and average usage.
However, with the rise of remote work, individuals are now conducting business activities from their residences, blurring the line between personal and professional water usage. Consequently, determining eligibility for business water rates when working from home involves navigating a complex landscape.
But how would you know if you are eligible for this business rate? According to the Utility Bidder, you can benefit from cost-effective water rates when you click here.
What Are Business Rates?
Business rates are taxes charged to businesses based on the property’s open market rental value. The rates depend on the property’s size, location, and the type of business you are operating.
Businesses can also qualify for business rate relief, which can help save you some money.
These are the criteria by which you can be eligible for business rate relief: if your business is in a rural area, if you have a small business, or if you occupy a property with a low rateable value. It is important to check with your local council to see if you qualify for any relief and how to apply for it.
- If you are the only business in a rural area.
- If you are a small business.
- A retail, hospitality and leisure property.
- A local newspaper.
- A charity or a community amateur sports club.
You can also qualify for business rates relief if you fit any of the following:
Your Business Is in Financial Difficulty
If you struggle to make full payments, qualify for a business rate relief.
Your Property Is a Heat Network
A heat network is a business that supplies cooling and heating to other properties from a central source.
Your Rates Change by A Certain Amount After Revaluation
The Valuation Office Agency updates property value rates, and these changes will reflect in your business rates.
This means that all properties are given a new rateable value.
Your Property Is in An Enterprise Zone
An enterprise zone is an area that the government has sectioned for businesses to set up or move to and will receive incentives for making the change in location.
Requirements for Qualifying for Business Rates While Working from Home
The Valuation Office Agency is responsible for informing the government on valuation and property advice on the taxation and benefits of the tax.
These are the factors the Valuation Office considers to qualify for business rates while working from home. First, the property must be used solely or mainly for business purposes. Second, the property must be separate from the living area and have its own entrance. Additionally, it is important to note that not all home-based businesses qualify for business rates, and it is best to consult with the Valuation Office Agency for specific guidelines.
You will need to pay business rates and council tax if you meet the following criteria:
- Whether your customers visit your home to buy from you or if you post products to customers.
- If you have employees working from your house.
- Any physical, structural conversions that were done to your home to create a business workspace.
- The way you operate your business.
- If your house is on the same premises as your business.
An important aspect to note is that you might be liable to pay business rates if a part of your home is used for your business and still pay council tax on your home as well.
However, if you have a space within the house that you use as an office, for example, a spare bedroom occasionally, then you will not need to pay business rates as this area still functions as a part of your domestic living space.
But, if you have converted a domestic space into an official workspace, then business rates will apply.
The Valuation Office will assess each work-from-home business to check whether they fit the criteria or can be exempted from being charged business rates. If the Valuation Office finds the space fit for a business, then you would only pay business rates for the workspace and not the whole house.
Business rates are calculated the same way as your domestic water rates. If you are self-employed and are liable for these business rates, you get to claim back the business rates as part of your allowable expenses on your taxes.
Business Sewerage Rates
If you pay business rates for sewerage, you may apply for a domestic allowance of 95 m3 every six months. This allowance takes the percentage of water from the volume recorded on the metre. To be eligible for this allowance, you must provide evidence that the premises are used as a domestic dwelling for at least part of the time. Additionally, any water used for business purposes will not be included in the allowance calculation.
Conclusion
Qualifying for business water rates while working from home can benefit your costs. Utility companies offer great rates for businesses which can save money.
To find out if you qualify, you can contact your local municipality so that they can assess whether your property is eligible to be charged business rates.
