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• # 71941
• Thu 09 Jun 2011 05:37 AM

I noticed a post mentioning Council tax.  As this is a tax on domestic property i would have thought that this should not normally be included in the accounts of a business.

Normally a business premises would be subject to Business rates (unless agricultural)which should be included in the accounts

Can someone please enlighten me

thanks

Martin

• "Helping small acorns become large oaks"
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• # 71942
• Thu 09 Jun 2011 05:43 AM

Can't help - and will wait with interest but just a thought

If someone uses part of their home as a dedicated office there is an adjustment to the council tax (and a business rates charge) for the space used.

Can't remember the calculation - it came up at an HMRC day course on starting ones business that I went to a year or so ago.


Reason for edit: One day I will learn how to spell! 

Edited at 09 Jun 2011 05:51 AM GMT

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• # 71949
• Thu 09 Jun 2011 09:33 AM

Hello

As a childminder, I am allowed to claim 10% of my council tax against profits - however I am not sure if this is due to using the majority of the house to run that business or not.

It will be interesting to know as I will be switching from that to using just the study and potentially another reception room for the bookkeeping practice.

Kind regards

Sandra 

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• # 71955
• Thu 09 Jun 2011 12:19 PM

Hi

Homes and businesses working from homes is a grey area - if a business is de-minimus and not business rated, the council tax charge remains which is domestic - is there a standard percentage of council tax to journal on accounts.

FYI - If your domestic property does fall into business rates then it is likely that your premises will have a low rateable value - please note that if it is your only business premises, then you may be eligible to claim small business rate relief which for some businesses is currently up to 100% relief.

Regards

Martin

Martin

• "Helping small acorns become large oaks"
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