Hi
I've been operating a successful let for a few years now and it's worked so well that I'm considering expanding my empire a bit
In fact, having discussed things with my mortgage advisor and accountant, I'm toying with the idea of incorporating i.e. setting up a company and buying a number of properties through it, which my advisors tell me may be advantageous.
One thing I'm not sure about is business rates. I know I am not entitled to SBRR once I have more than one
What I'm not sure of is how my total rates liability is calculated if I have say four properties
Are there any rules I need to be aware of? And does anyone know a way of getting an estimate of the rateable value for a property?
Many thanks
Tony
Business Rates, Multiple Properties
Re: Business Rates, Multiple Properties
I'm not sure that this is the right time to do this and there is a huge disincentive to having 3 or 4 holiday lets in that you may end up having to charge VAT if the rental income from all the holiday lets (+ any other VATable things you do) exceed £85,000 - and bear in mind this is the rental charged to the guest not the income less your agent's charges. With high inflation, if they don't increase the threshold, you may suddenly find yourself having to charge 20% VAT on your rental rates.
In addition, you have to pay for the Performing Rights license (PRS license) if you have a TV or radio in the property, and as you say you lose the business rate relief and pay the small business rates multiplier on the rateable value. For our 2 bedroom property in Sussex, this is around £1800/year.
In addition, you have to pay for the Performing Rights license (PRS license) if you have a TV or radio in the property, and as you say you lose the business rate relief and pay the small business rates multiplier on the rateable value. For our 2 bedroom property in Sussex, this is around £1800/year.