I have a client who is looking to start a second hand car business, initially using his own driveway to store/show the cars. There will be no signage, no modifications to drive or property, he'll keep his own cars on the same driveway, and will occasionally bring a customer into the kitchen to complete paperwork. Any idea if this setup would make him liable to business rates?
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Presumably, if it did give rise to the non-domestic rate arrangements, your client might qualify for the small business rate relief?
https://www.gov.uk/introduction-to-business-rates/working-at-home
6. Working at home
You don’t 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, eg converted a garage to a hairdresser’s
Contact the Valuation Office Agency (VOA) to find out if you should be paying business rates. In Scotland, contact your local assessor.
That bit about "you sell goods or services to people who visit your property" doesn't look promising. Should he also be concerned about planning permission, i.e. is it a change of use?
Certainly around here planning is important, I have a neighbour in my street who uses his garden to do this and he required PP (and got a lot of neighbour objections into the bargain).
If he is going to be storing/showing cars regularly (as a trade) then he will almost certainly need planning permission, since it is both a potential change of use and a nuisance. Speak to your local council planning adviser.
I hadn't thought of the planning permission angle.
It's rather worrying if your client hasn't. Mind you, plenty people just do things like that and wait to see if anyone challenges them.
The main issue will be where is his house? If its on a main road with mixed residential/commercial operations then ought not be a big deal to get planning.
If its on a 1980's housing estate........good luck to your client with that one!
There may also be restrictions in his deeds prohibiting business use. Usually ignored for "paperwork" businesses, but for sale of 2nd hand cars it might be fatal as its unlikely to be overlooked by planners/neighbors etc.
Yes, over the years we have inserted various burdens within Deeds of Condition for residential property developments, even to the extent of banning caravans (I hate caravans) and boats on driveways and the hanging of laundry in front gardens.
A lot of people buy and sell cars from their driveways. I guess the point at which it ceases to be a hobby and becomes a trade is the point at which one would call in the planning department? And that would probably also be the same point at which it was time to rent some dedicated premises...
I agree. The scale of operations is a factor.
If he has one car for sale at a time, he'll be grand.
A dozen - definitely not.
What the tipping point is, dunno.