Reduction in council tax for holiday homes

Agencies and other headaches, keys and cleaners, running costs and contracts...in short, all the things we spend so much of our time doing behind the scenes.<br>
DaveN
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Post by DaveN »

Hi Beergander,
My local council were quite helpful and knew all about it, but yes I did have to apply separately for it.

http://www.businesslink.gov.uk/bdotg/ac ... =RESOURCES

Has all the details...
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Val
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Post by Val »

This is useful stuff , particularly about the Small Business Rates Relief which I didn't know about.
We're not paying anything at the moment, I can't seem to get them to send a bill-I don't believe we're even in the system. I've spoken to people in the relevant department three or four times, including the Valuation Inspector, but still no bill! This has been going on for months-we started trading in March this year. Is it normal for it to take this long
I'll certainly be putting in for the Small Business rate Relief - if and when we ever get billed.
Thanks for the tip.
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Nemo
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Post by Nemo »

Yes it can take quite some time. For one owner I know of it took nearly two years to get sorted! That is clearly not the norm though! Apply for small rates relief now rather than waiting for the valuation, otherwise you'll get even more of a delay. The relief though is applied by the council whereas the valuation is obviously the V Office.

When I applied, I was told by the Council to put away ie save the money that I should be paying so that I had the funds when required. Clearly some people spend the money in the interim so they then can't afford to pay the bill when it does eventually arrive.
Val
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Post by Val »

That sounds like me! There always seems to be a more pressing use for the money.
I suppose I should start putting a bit by.

Although if this Small Business Rate Relief comes up trumps I may not need to!
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Nemo
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Post by Nemo »

You can regard it as a bonus if that's the case then and spend it on something exciting!
Val
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Post by Val »

Great news- I've had my valuation- and it looks like I'll get the 100% relief till September 2012! Thanks very much for this thread and the info. I'm going to pass it on to a colleague who has recently bought a holiday cottage.
DaveN
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Post by DaveN »

Glad to help!
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Beergander
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Post by Beergander »

Dave,

One question do you have to manage the property in any different way if you are registered for business rates? Eg. Have annual accounts produced? Rather than just declaring rental income under personal allowances?

Cheers
DaveN
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Post by DaveN »

Hi Beergander,
The advice that I received from North Norfolk Disctrict Council (backed up by separate research) was that if your property is available for 140 days or more, then you have to register for business rates.
Since 140 days availability is also one of the qualifying criteria for being a funished holiday let buisness, it follows that if you are running a FHL, you also have to register for business rates.
The way that you declare your earnings (company accounts or as income from property on you self-assessment) doesn't come into it.

Now call me a cynic, but I can imagine that once the economic position of the country improves, not only will we loose the rate relief, but end up making up for what we have saved - but for now I'm not complaining...
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Val
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Post by Val »

I would like to confirm, also, that Cheshire West and Chester Council have also said the same as the above; as a Furnished Holiday Let, which is classed as a Small Business, it comes under Business Rates.
It's all good, because I worked out that as opposed to £1300-odd in Council Tax, which it would have been , as it was Band C under the Council Tax; under the Business Rates I would only have paid half of that anyway, had I been liable to pay anything this year. (Which I'm not---Yippee!)
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Moliere
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Post by Moliere »

Ooh, you lucky bunnies - do you think you could have a word with my Mairie?

My equivalent of council tax is over £3,000 a year, despite the fact that the house is only ocupied (by my guests) for six months pa tops, they tend not to use the local schools or the social services etc and basically, we're paying an awful lot of money for rubbish-collection and some (admittedly very nice) flower baskets.

And just to add insult to injury - I can only offset about half of it against income-tax!

It's a different world :roll: :roll: :roll:

Mols
Jumping is just dressage with speed-bumps.
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apexblue
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Post by apexblue »

Were you asked for income and expenditure details?
It is better to remain quiet and have one think you are stupid, than to open your mouth and remove all doubt....

The biggest mistake we make in life is thinking we have time.
DaveN
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Post by DaveN »

No, just the number of bedrooms.

The business rate is based on what the valuation office thinks it would cost to rent an equivalent premesis as I recall.
So I suppose it depends on how you local authority arrives at that rental rate?
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Beergander
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Post by Beergander »

Funnily I received a new council tax bill yesterday, there's a business rate relief credit for the entire amount so no payment due :D (Well at least until April 2012).

I must say that Cornwall council have been very friendly and efficent from start to end. Well worth the small amount of effort involved.
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wallypott
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Post by wallypott »

Moliere wrote:Ooh, you lucky bunnies - do you think you could have a word with my Mairie?

, we're paying an awful lot of money for rubbish

Mols
And our dustbin men are complete Nazis. They wont take nappies for god sake. What the sh*te am I meant to do with them? They really don't recycle well! And god help any infringements of the rules by guests - I am not on site and frequently find they have refused to take the blooming rubbish at all, so new guests in to full bins.
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