Author Topic: Business rates for use of outbuilding as a shop? (Read 7455 times)

Foel Isaf · « **on:** April 05, 2014, 11:05:11 am »

Hi, I have just joined accidental smallholder and cheekily I am already asking for help!

We have registered our smallholding as a business with HMRC and are voluntarily registered for VAT as we can reclaim the VAT we have spent out.

We are expanding our business plans and our aim is to sell eggs, fruit vegetables and plants on a small scale from an existing outbuilding which we have just renovated having been derelict for many years. This would be an ideal premises to sell our wares from, but will I need to pay business rates on this part of the business - we live on the holding in the house we have just renovated as well. We are currently only paying ordinary domestic rates on the holding.

If anyone can help with some advice I would be very grateful, thank you.

henchard · « **Reply #1 on:** April 05, 2014, 11:17:33 am »

Hi and welcome

see

http://www.voa.gov.uk/corporate/Publications/Manuals/RatingManual/RatingManualVolume4/sect8/f-rat-man-vol4-s8-ptd-app1.html#P78_1560

Particularly

Since retail marketing is not regarded as part of "agricultural operations", farm shops (and other buildings and non-agricultural land associated with the retail sale of produce) are liable to be assessed. By operating a shop, the farmer is engaging in a business which is not consequential upon, or ancillary to, agricultural operations, whether or not the items are grown on the farm. See the judgements of Lord Reid in W and J B Eastwood v Herrod (VO) [1970] HL RA at page 70 and Ackner LJ in Corser (VO) v Gloucestershire Marketing Society Ltd [1980] CA 257 EG 825.Although prima facie all farm shops are rateable, it may be that the nature and/or the scale of retail operations is such, that the farm shop etc can be treated as coming within the de minimis principle, in which case the occupation should not be rated. Borderline cases should be submitted to CEO Technical Centre for advice.The farm shop should not be granted exemption solely on the grounds that it is so used for a short period of time only in each year.

Also this may be of interest as well

https://www.gov.uk/farm-shops-and-farmers-markets#farm-shops

Foel Isaf · « **Reply #2 on:** April 05, 2014, 11:23:34 am »

Thank you so much for the very useful information, thats just the sort of informative answer I was looking for, at least when I approach the council I will have some knowledge of what I am talking about.

Many thanks

shygirl · « **Reply #3 on:** April 05, 2014, 11:34:47 am »

we were advised that we would be assessed for business rates but should be exempt as it was a small rural business. that was for a small farm shop selling meat.

VEG · « **Reply #4 on:** April 05, 2014, 11:09:06 pm »

Also dont forget that you may be charged for removal of business waste.

Foel Isaf · « **Reply #5 on:** April 08, 2014, 04:21:59 pm »

Thank you again for the helpful information, ours will only be a small affair selling eggs, jams, plants so hopefully they will see us a small venture.

I am hopeful that our waste disposal won't be too big a problem as we recycle all we can, but good pint to consider

shygirl · « **Reply #6 on:** April 09, 2014, 10:03:30 am »

you will need to register as a food business too, if you are selling jams, whether you make them or not, so speak to the EH about your plans as they are helpful and best kept on side. we found the business gateway very helpful for info, support and contacts too.