Originally written by Timothy Adler on Small Business
At the height of the first wave of the pandemic last April, nearly half of the working population were working from home. Since then we’ve had a succession of lockdowns, with the government now encouraging people to stay WFH until July 19 2021 and possibly beyond. But do you have to pay business rates if you’re working from home?
For freelancers, sole traders and the self-employed, not much has changed. But others new to home working will be asking which taxes they do have to pay, including business rates.
Do I need to pay business rates working from home?
You do not usually have to pay business rates for home-based businesses if you:
Use a small part of your home for your business, for example if you use a bedroom as an office
Sell goods by post
You may need to pay business rates as well as Council Tax if:
Your property is part business and part domestic, for example, if you live above your shop
You sell goods or services to people who visit your property
You employ other people to work at your property
You’ve made changes to your home for your business, for example converted a garage into a beauty