UK Business Rates for new coworking space

[ed.c...@vitalsix.co.uk]

Hi all

We are about to open a 65 workstation space in Reading UK.  We are a small business working in partnership with the University of Reading and will be opening this space in the first building on their new science park early in the new year.

Has anybody opening a new coworking space in the UK got experience of dealing with the ratings authority?  We are a small business and would normally get 100% rate relief on our premises.  All the businesses using the space will also be small businesses who would also get 100% rate relief.  So logically there would be no business rates due for the space as all parties are eligible for 100% rate relief. 

However because we are taking a lease for 3,600 sq ft of space we are no longer deemed to be a small business (despite there only being 3 FTE employees) by the rating authority and could be liable for full rates on the space which might be £40k.  Our understanding that this is payable almost immediately irrespective of the level of use in the space.

Any experiences of this issue would be valuable information for us.

Thanks

Ed Cooper

VitalSix Ltd

[Mark]

I'm also looking at opening a UK space and would be really interested in finding out!

[gor...@gmail.com]

Hi Ed

Did you get a reply to your enquiry below, as I find myself in exactly the same position.

Regards

Anton

[Fiona Frank]

Hi - we opened in 2013 so have more experience of this. Do you have separate rooms/units?

You can negotiate for six months rates relief while you get started . Make friends with your rates people!

What we have done is had to rent the separate spaces to different organisations - sometimes rent free while we were starting up. That way the different organisations get small business rates relief.

Please email or phone me for more info
Fiona

Green Elephant Cooperative
Halton Mill Mill Lane Halton LA2 6ND
Www.haltonmill.org.uk

Fiona...@gmail.com tel 07582 789406 or 07778 737681

[ed.c...@vitalsix.co.uk]

Hi Fiona, Frank, Mark

We are still in contact with the rating authority and are hoping to negotiate some sort of deal (the six months rate relief that Fiona mentioned).  The ratings authority has discretion to deal with "hardship".  It will genuinely be the case that a large upfront rates bill will create hardship for us!  Our space is one large open plan area so options to split the space up are limited.  So we are now hoping to negotiate a 6 month or similar rate free period and are somewhat resigned to eventually paying the full rates on the space and hope that we can fill it quickly enough to mitigate any cash flow issues.  Incidentally us paying the full rates means that in effect the rates bill is being passed on to our customers who are all going to be early stage businesses meaning that they therefore do not get small business rate relief.  The very people, that presumably, the policy was meant to help.

Fiona - I will give you a call.

Ed